ACC 556 Week 4 Quiz | Assignment Help | Strayer University
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- 26 Jul 2020
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ACC 556 Week 4 Quiz | Assignment Help | Strayer University
ACC 556 Week 4 Quiz (Q
+Ans)
Question 1
Which one of the following is not an objective
of a system of internal controls?
o
Safeguard company assets.
o
Fairness of the financial statements.
o
Reduce the risks of errors.
o
Enhance the accuracy and reliability of
accounting records.
Question 2
All of the following are examples of internal
control procedures except
o
Customer satisfaction surveys.
o
Reconciling the bank statement.
o
Insisting that employees take vacations.
o
Using prenumbered documents.
Question 3
Each of the following
is a feature of internal control except
o
An extensive marketing plan.
o
Separation of duties.
o
Recording of all transactions.
o
Bonding of employees.
Question 4
Each of the following is a feature of internal
control except
o
Independent internal verifications.
o
Generic design of documents.
o
Authorization of transactions.
o
Limited access to assets
Question 5
Having one person responsible for the related
activities of ordering merchandise, receiving goods, and paying for them
o
Decreases the potential for errors and
fraud.
o
Is a good example of safeguarding the company's
assets.
o
Is an example of good internal control.
o
Increases the potential for errors and
fraud.
Question 6
The custodian of a
company asset should
o
Be an accountant.
o
Have access to the accounting records
for that asset.
o
Be someone outside the company.
o
Not have access to the accounting
records for that asset.
Question 7
Internal auditors
o
Evaluate the system of internal controls
for the companies that employ them.
o
Are hired by CPA firms to audit business
firms.
o
Cannot evaluate the system of internal
controls of the company that employs them because they are not independent.
o
Are employees of the IRS who evaluate
the internal controls of companies filing tax returns.
Question 8
When two or more people get together for the
purpose of circumventing prescribed controls, it is called
o
A fraud committee.
o
Collusion.
o
A division of duties.
o
Bonding of employees.
Question 9
From an internal
control standpoint, the asset most susceptible to improper diversion and use is
o
Prepaid insurance.
o
Land.
o
Cash.
o
Buildings.
Question 10
A consequence of the separation of duties is
that
o
Theft by employees becomes impossible.
o
Operations become extremely inefficient
because of the constant training of employees.
o
More employees will need to be bonded.
o
Theft is still possible when several
employees are involved.
Question 11
A $290 petty cash fund
has cash of $50 and receipts of $240. The journal entry to replenish the
account would include a credit to
o
Cash for $240.
o
Petty Cash for $240.
o
Cash Over and Short for $50.
o
Cash for $240.
Question 12
A $310 petty cash fund has cash of $50 and
receipts of $200. The journal entry to replenish the account would include a
o
Credit to Petty Cash for $200.
o
Debit to Cash for $200.
o
Debit to Cash Over and Short for $60.
o
Credit to Cash for $200.
Question 13
A $210 petty cash fund has cash of $52 and
receipts of $181. The journal entry to replenish the account would include a
o
Credit to Cash for $181.
o
Credit to Cash Over and Short for $23.
o
Debit to Cash for $158.
o
Credit to Petty Cash for $158.
Question 14
Expected direct
materials purchases in Oriole Company are $209000 in the first quarter and
$269000 in the second quarter. 40 percent of the purchases are paid in cash as
incurred, and the balance is paid in the following quarter. The budgeted cash
payments for purchases in the second quarter are:
o
$269000.
o
$233000.
o
$215000.
o
$287000.
Question 15
Expected direct
materials purchases in Kingbird, Inc. are $718000 in the first quarter and
$923000 in the second quarter. Forty percent of the purchases are paid in cash
as incurred, and the balance is paid in the following quarter. The budgeted
cash payments for purchases in the second quarter are:
o
$923000.
o
$984600.
o
$746000.
o
$800000.
Question 16
The following credit
sales are budgeted by Blossom Company:
May $561700
June 826000
July 1156400
August 991200
The company’s past
experience indicates that 70% of the accounts receivable are collected in the
month of sale, 20% in the month following the sale, and 8% in the second month
following the sale. The anticipated cash inflow for the month of August is
o
$991200.
o
$971380.
o
$1019616.
o
$925120.
Question 17
Sunland company is
preparing a cash budget for September. The company’s cash balance on September
1 is $20420. The company anticipates cash receipts of $98380 and cash
disbursements of $103240. If Sunland company desires a cash balance of $21120,
it must
o
Acquire financing of $16260.
o
Acquire financing of $700.
o
Acquire financing of $5560.
o
Acquire financing of $4160.
Question 18
The following credit
sales are budgeted by Nash's Trading Post, LLC.
January 125800
February 185000
March 259000
The company’s past
experience indicates that 60% of the accounts receivable are collected in the
month of sale, 40% in the month following the sale. The anticipated cash inflow
for the month of March is
o
$259000.
o
$251600.
o
$229400.
o
$155400.
Question 19
Ivanhoe Company is
preparing a cash budget for September. The company’s cash balance on September
1 is $36190. The company anticipates cash receipts of $174410 and cash
disbursements of $183020. If Ivanhoe Company desires a cash balance of $37440,
it must
o
Acquire financing of $7360.
o
Acquire financing of $1250.
o
Acquire financing of $28830.
o
Acquire financing of $9860.
Question 20
The following credit
sales are budgeted by Blossom Company:
February 236000
March 330400
April 283200
The company’s past
experience indicates that 60% of the accounts receivable are collected in the
month of sale, 40% in the month following the sale. The anticipated cash inflow
for the month of April is
o
$302080.
o
$196352.
o
$164256.
o
$273760.
Question 21
The following credit sales are budgeted by
Kingbird, Inc.:
January $348800
February 513000
March 718200
April 615600
The company’s past
experience indicates that 70% of the accounts receivable are collected in the
month of sale, 20% in the month following the sale, and 8% in the second month
following the sale. The anticipated cash inflow for the month of March is
o
$615600.
o
$603280.
o
$633244.
o
$574560.
Question 22
Which one of the following sections would not
appear on a cash budget?
o
Financing.
o
Cash receipts.
o
Cash disbursements.
o
Investing.
Question 23
The following information was taken from
Pharoah Company cash budget for the month of April
Beginning cash balance $149000
Cash receipts 134000
Cash disbursements 169000
Depreciation 32500
If the company has a
policy of maintaining an end of the month cash balance of $124000, the amount
the company would have to borrow is
o
$35000.
o
$0.
o
$144000.
o
$10000.
Question 24
The following
information was taken from Windsor, Inc. cash budget for the month of June
Beginning cash balance $59000
Cash receipts 80000
Cash disbursements 101000
If the company has a
policy of maintaining an end of the month cash balance of $52000, the amount
the company would have to borrow is
o
$0.
o
$21000.
o
$31500.
o
$14000.
Question 25
The following information was taken from
Cheyenne Corp. cash budget for the month of July:
Beginning cash balance $110000
Cash receipts 106000
Cash disbursements 150000
If the company has a
policy of maintaining an end of the month cash balance of $110000, the amount
the company would have to borrow is
o
$30000.
o
$66000.
o
$22000.
o
$44000.
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