41) If a bank reconciliation included deposits in transit amounting to $1,500, the journal entry to record this reconciling item would include:
A) no entry is required
B) a credit to Accounts Receivable for $1,500
C) a debit to Cash for $1,500
D) a credit to Cash for $1,500
42) If a bank statement included an EFT payment of $670 for insurance, the journal entry to record this reconciling item would include a:
A) debit to Cash for $670
B) debit to Accounts Payable for $670
C) credit to Cash for $670
D) credit to Prepaid Insurance for $670
43) Which of the following does
not
require a journal entry for a bank reconciliation?
A) outstanding cheques
B) bank service charge
C) collection by the bank of a note receivable
D) NSF cheque returned by the bank
44) A petty cash system facilitates:
A) payments of all business expenses by cash
B) payments of all business expenses by cheque
C) payment of small business expenses by cash
D) receipt of small invoices from customers in cash
45) To control payments for purchases of invoices, the following would
not
be presented as supporting documents for approval:
A) purchase order
B) invoice
C) receiving slip
D) cancelled cheque
46) All of the following are controls over cash received in a store
except:
A) the customer should be able to see the amounts entered into the register
B) the clerk must have access to the cash register tape
C) it should be a requirement that a receipt be given to the customer
D) the cash drawer should open only when the sales clerk enters an amount on the keys
47) When opening incoming mail, the mailroom employee should compare the amount of the cheque received with the amount shown on the:
A) sales invoice
B) cash receipts journal
C) customer order form
D) remittance advice
48) To maintain effective controls over cash, who should be the first person to handle cash received through the mail?
A) the accounts receivable clerk
B) a mailroom employee
C) the controller
D) the bookkeeper
49) Which of the following is prepared by the purchasing department and sent to a vendor that sells the needed merchandise?
A) an invoice
B) purchase order
C) disbursement packet
D) purchase request
50) All of the following steps should be performed by the accounting department prior to the approval of a disbursement
except:
A) the invoice should be compared with a copy of the purchase order and purchase request
B) the mathematical accuracy of the invoice should be proved
C) the invoice should be compared with the receiving report
D) the cheque should be processed and signed with an authorized signature