|1. A bank reconciliation should be prepared periodically because (Points : 2) the depositor%u2019s records and the bank%u2019s records are in agreement.|
the bank has not recorded all of its transactions.
any differences between the depositor%u2019s records and the bank%u2019s records should be determined, and any errors made by either party should be discovered and corrected.
the bank must make sure that its records are correct.
|2. The bank reconciliation (Points : 2) should be prepared by an employee who records cash transactions.|
is part of the internal control system.
is for information purposes only.
is sent to the bank for verification.
|3. A firm%u2019s internal control environment is influenced by (Points : 2) Management%u2019s operating style.|
all of these.
|4. A special cash fund used to make small payments that occur frequently is called a(n) (Points : 2) operating expenses fund.|
petty cash fund.
|5. Which of the following would be added to the balance per books on a bank reconciliation? (Points : 2) Service charges|
Deposits in transit
Notes collected by the bank
|6. A minimum cash balance required by a bank is called (Points : 2) cash in bank.|
|7. The Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to (Points : 2) report on the financial activities of the company.|
report on any fraud and theft detected in the company.
report on the state of the economy and likelihood of fraud.
report on the effectiveness of the company%u2019s internal controls.
|8. Which of the following is NOT defined as cash? (Points : 2) Coins|
|9. Which of the following elements of internal control focuses upon locating weaknesses and improving control effectiveness? (Points : 2) The control environment|
|10. Requiring employees to take annual vacations is part of which element of internal control? (Points : 2) The control environment|
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