Question 1

The bank reconciles its statement to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 2

An element of internal control is:

Accepted Answer

A)   business.
B)   management.
C)   monitoring.
D)   personnel policies.E) All of the above
F) B) and C)

Question 3

A bank reconciliation is an important part of the system of internal controls.

Accepted Answer

A) True 
 B)False

Question 4

Risks can be analyzed to:

Accepted Answer

A)   assess their likelihood of occurring.
B)   assess their overall significance.
C)   determine actions that will minimize them.
D)   do all of these.E) A) and B)
F) A) and C)

Question 5

Why would a bank require a company to maintain a compensating balance?

Accepted Answer

Usually it is part o...

Question 6

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) :

Accepted Answer

A)   deduction from the cash balance per books.
B)   addition to the cash balance per bank.
C)   deduction from the cash balance per bank.
D)   addition to the cash balance per books.E) A) and B)
F) All of the above

Question 7

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 8

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following reflects a weak internal control system?

Accepted Answer

A)   All employees are well supervised
B)   A single employee is responsible for comparing a receiving report to an invoice
C)   All employees must take their vacations
D)   A single employee is responsible for the collecting and recording of cashE) None of the above
F) A) and C)

Question 10

Minimum cash balance maintained in the bank account is called line of credit.

Accepted Answer

A) True 
 B)False

Exam 5: Sarbanes-Oxley, Internal Control, and Cash

The bank reconciles its statement to the depositor's records.

Correct Answer
verified

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) :

Correct Answer
verified

Why would a bank require a company to maintain a compensating balance?

Correct Answer
verified
Usually it is part o...
View Answer

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Correct Answer
verified

An element of internal control is:

Correct Answer
verified

Risks can be analyzed to:

Correct Answer
verified

Which of the following reflects a weak internal control system?

Correct Answer
verified

A bank reconciliation is an important part of the system of internal controls.

Correct Answer
verified

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

Correct Answer
verified

Minimum cash balance maintained in the bank account is called line of credit.

Correct Answer
verified

Exam 5: Sarbanes-Oxley, Internal Control, and Cash

The bank reconciles its statement to the depositor's records.

Correct AnswerverifiedShow Answer

Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n) :

Correct AnswerverifiedShow Answer

Why would a bank require a company to maintain a compensating balance?

Correct AnswerverifiedUsually it is part o...View AnswerShow Answer

The amount of the "adjusted balance" appearing on a bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Correct AnswerverifiedShow Answer

An element of internal control is:

Correct AnswerverifiedShow Answer

Risks can be analyzed to:

Correct AnswerverifiedShow Answer

Which of the following reflects a weak internal control system?

Correct AnswerverifiedShow Answer

A bank reconciliation is an important part of the system of internal controls.

Correct AnswerverifiedShow Answer

The data needed to adjust a depositor's books are shown in the "adjustments to the depositor's records" section of a bank reconciliation.

Correct AnswerverifiedShow Answer

Minimum cash balance maintained in the bank account is called line of credit.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Usually it is part o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified