strayer acc100 week 5 QUIZ CH 8

ACC100 quiz ch08

Question 1
The most important element of the fraud triangle is

rationalization.

financial pressure.

incompatible duties.

opportunity.

Question 2
Deposits in transit

are checks from customers which have not yet been received
by the company.

have been recorded on the company’s books but not yet by the
bank.

have been recorded by the bank but not yet by the company.

have not been recorded by the bank or the company.

Question 3
Bank errors

occur because of time lags.

are infrequent in occurrence.

must be corrected by debits.

are corrected by making an adjusting entry on the
depositor’s books.

Question 4
Having one person post entries to accounts receivable
subsidiary ledger and a different person post to the Accounts Receivable
Control account in the general ledger is an example of

duplication of effort.

segregation of duties.

external verification.

inadequate internal control.

Question 5
Which one of the following items would not be considered
cash?

Coins

Money orders

Postdated checks

Currency
Question 6
A $100 petty cash fund has cash of $16 and receipts of $82.
The journal entry to replenish the account would include a

debit to Cash for $82.

credit to Petty Cash for $84.

debit to Cash Over and Short for $2.

credit to Cash for $82.

Question 7
In preparing its bank reconciliation for the month of April
2014, Haskins, Inc. has available the following information.

Balance per bank statement, 4/30/14 $40,920
NSF check returned with 4/30/14 bank statement 1,350
Deposits in transit, 4/30/14 10,500
Outstanding checks, 4/30/14 15,600
Bank service charges for April 60

What should be the adjusted cash balance at April 30, 2014?

$35,820.

$35,760.

$34,410.

$34,470.
Question 8
Macrinez Company assembled the following information in
completing its July bank reconciliation: balance per bank $22,920; outstanding
checks $4,650; deposits in transit $7,500; NSF check $480; bank service charge
$150; cash balance per books $26,400. As a result of this reconciliation,
Macrinez will

increase its cash account by $330.

reduce its cash account by $150.

reduce its cash account by $630.

reduce its cash account by $2,850.

Question 9
If a check correctly written and paid by the bank for $427
is incorrectly recorded on the company’s books for $472, the appropriate
treatment on the bank reconciliation would be to

add $45 to the bank’s balance.

deduct $45 from the bank’s balance.

deduct $427 from the book’s balance.

add $45 to the book’s balance.

Question 10
The cash account shows a balance of $90,000 before
reconciliation. The bank statement does not include a deposit of $5,000 made on
the last day of the month. The bank statement shows a collection by the bank of
$2,400 and a customer’s check for $640 was returned because it was NSF. A
customer’s check for $900 was recorded on the books as $1,080, and a check
written for $138 was recorded as $192. The correct balance in the cash account
was

$91,580.

$91,634.

$96,634.

$92,400.