Which among the following is not an element of internal control?a. Monitoringb. Management"s viewpoint and also operating stylec. Control proceduresd. Risk assessment
Hector Company kind of gathered the following reconciling indevelopment in preparing its March bank reconciliation:Cash balance per books, 3/31 $12,000Notes receivable built up by bank 6,000Outstanding checks 9,000Deposits in transit 4,500Bank service charge 75NSF check 1,200Using the over indevelopment, determine the readjusted cash balance for March.a. $16,725b. $12,225c. $15,500d. $7,500
Cash equivalents includea. commercial paper.b. money market funds.c. U.S. Treasury bills.d. All of these selections are correct.
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Which of the adhering to is not a factor that Congress passed the Sarbanes-Oxley Act?a. To call for companies to keep solid and also efficient inner controls over the recording of financial transactionsb. To apply the very same controls to personal companies regarding public companiesc. To call for companies to keep solid and also reliable internal controls over the preparation of financial statementsd. To answer the public outcry regarded the financial scandals of the early on 2000s
Which of the adhering to would certainly show up as a crmodify memorandum on the financial institution statement?a. EFT depositb. Bank correction of an error from recording a $300 check phelp as $30c. Service charged. NSF check
Internal control does not consist of policies and steps thata. assist monitoring in directing operations toward achieving service goals.b. encertain that service indevelopment is precise.c. guarantee the firm will certainly make a profit.d. safeguard assets from misuse.
All of the complying with are goals of internal manage except toa. make certain that all errors are removed.b. encertain compliance through regulations and regulations by employees and also supervisors.c. administer reasonable assurance that company indevelopment is accurate.d. carry out reasonable assurance that assets are safeguarded and provided for service purposes.
The company area of the bank reconciliationa. ends through the changed balance.b. deducts delittle bit memos that have not been taped.c. begins with the cash balance according to the company"s documents.d. All of these selections are correct.
Journal entries based upon the bank reconciliation are forced in the depositor"s accounts fora. deposits in transit.b. NSF items.c. bank errors.d. superior checks.
The delittle bit balance in Cash Brief and also Over at the end of an accounting duration is reported asa. earnings on the earnings statement.b. a liability on the balance sheet.c. an asset on the balance sheet.d. an price on the earnings statement.
Which of these is a minimum cash account balance that is compelled by a bank?a. Compensating balanceb. Bank loanc. Cash equivalentd. Line of credit
Which of the complying with is not an outcome or characteristic of the Sarbanes-Oxley Act?a. Effective internal controls over the preparation of financial statementsb. Repair of public confidence and also trust in the financial statements of companiesc. Complete elimination of fraud and also theftd. Strong internal controls over the recording of transactions
The bank area of the bank reconciliationa. ends via the readjusted balance.b. ends with the unchanged financial institution balance.c. starts via the cash balance according to the company"s records.d. None of these options are correct.
Which of the complying with is not an inner control activity for cash?a. An employee compares cash received in the mail with the accompanying remittance advice.b. At the finish of a shift, the clerk and the supervisor count the cash in the clerk"s cash drawer and also compare it to beginning cash plus cash sales.c. The employee opening the mail stamps checks and money orders "For Deposit Only" in the bank account of the organization.d. All cash payments should be made with cash.
Compensating balances area. balances financial institutions may call for depositors to keep as a minimum in their cash accounts.b. asked for lines of credit.c. amounts of required payments on liabilities.d. wanted loan amounts.
Sarbanes-Oxley does not requirea. all publicly hosted providers to comply with the act.b. companies to rotate over obligation for creating and also preserving inner controls for financial reporting to auditors.c. carriers to file their interior regulate reports via the 10-K report via the Securities and also Exchange Commission.d. companies and their independent accountants to report on the efficiency of the companies" internal controls.
A bank correction of an error from recording a $50 check paid as $500 appears on the bank statement as aa. crmodify memorandum that decreases the account balance.b. delittle memorandum that decreases the account balance.c. delittle bit memorandum that boosts the account balance.d. credit memorandum that increases the account balance.
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An NSF check shows up on the bank statement as aa. crmodify memorandum that decreases the account balance.b. delittle memorandum that decreases the account balance.c. delittle memorandum that rises the account balance.d. crmodify memorandum that boosts the account balance.
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