Act201 Sample Exam

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ACCT201 Sample Exam 3 Name: __________________________ Date: _____________ 1. Joe's Grocery Store has the following policy. 'Only one cashier can have access to a cash drawer.' Which internal control principle supports this policy? A) Documentation procedures B) Segregation of duties C) Physical, mechanical, and electronic controls D) Establishment of responsibilities 2. A petty cash fund should be replenished A) every day. B) at the end of every accounting period. C) once a year. D) as soon as an expense is paid from the fund. 3. The following information was taken from Bounders Company cash budget for the month of July: Beginning cash balance Cash receipts Cash disbursements $50,000 48,000 68,000 If the company has a policy of maintaining end of the month cash balance of $50,000, the amount the company would have to borrow is A) $20,000. B) $10,000. C) $30,000. D) $12,000. 4. Rhoden Company wrote checks totaling $17,080 during October and $18,650 during November. $16,240 of these checks cleared the bank in October, and $18,220 cleared the bank in November. What was the amount of outstanding checks on November 30? A) $1,270. B) $230. C) $610. D) $1,980. 5. Which one of the following sections would not appear on a cash budget? A) Cash receipts B) Financing needed C) Investing D) Cash disbursements Page 1 ACCT201 Sample Exam 3 6. An adjusting entry is not required for A) outstanding checks. B) collection of a note by the bank. C) NSF checks. D) bank service charges. 7. A consequence of separation of duties is that A) theft by employees becomes impossible. B) operations become extremely inefficient because of constant training of employees. C) more employees will need to be bonded. D) theft is still possible when several employees are involved. 8. Which of the following is not an internal control

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