71. In order to achieve internal control over cash receipts:
A. The employee who handles checks received in the mail should not prepare the control listing.
B. The cashier should not deposit cash in the bank.
C. The salesclerk should not count the cash in the register at the end of the day.
D. The checks received in the mail from customers should not be sent to the accounting department to be recorded as cash receipts.
72. Which of the following is not a basic objective of cash management?
A. Provide accurate accounting for cash transactions.
B. Prevent or minimize theft or fraud.
C. Anticipate the need to borrow cash.
D. All three of the above are basic objectives of cash management.
73. Which of the following items on a bank reconciliation may not have been known to the depositor until the bank statement had arrived?
A. Bank service charges.
B. An NSF check.
C. A credit for interest earned.
D. All three of the above.
74. The primary purpose of a petty cash fund is:
A. Accuracy.
B. Convenience.
C. Internal control.
D. Conservatism.
75. Marketable securities are classified into three types; which one is not one of the three types?
A. Available-for-sale
B. Mark-to-market.
C. Trading
D. Held-to-maturity
76. With available-for-sale securities, unrealized holding gains and losses are:
A. Not reported until recognized.
B. Reported on the income statement.
C. Reported as an unearned revenue on the balance sheet.
D. Reported in the stockholders' equity section of the balance sheet.
77. When preparing a bank reconciliation, checks outstanding will:
A. Increase the balance per depositor's records.
B. Decrease the balance per depositor's records.
C. Increase the balance per the bank statement.
D. Decrease the balance per the bank statement.
78. A bank reconciliation explains the differences between:
A. Cash receipts and cash disbursements for the period.
B. The balance of cash in the bank and the budgeted expenditures for the upcoming accounting period.
C. The balance per bank statement and the cash balance per the accounting records of the depositor.
D. The balance per bank statement and cash expected to be on hand according to the cash forecast.
79. In reconciling a bank statement, which of the following items could cause the cash per the bank statement to be greater than the balance of cash shown in the depositor's accounting records?
A. An outstanding check.
B. A check returned to the depositor marked NSF.
C. Check 457 written for $643 was recorded by the depositor as $463.
D. A bank service charge.
80. When preparing a bank reconciliation, deposits in transit will:
A. Increase the balance per depositor's records.
B. Decrease the balance per depositor's records.
C. Increase the balance per the bank statement.
D. Decrease the balance per the bank statement.