acct final 4 – Flashcards

Cash flows from investing activities do not include:

Cash flows from financing activities include:

Issuing common stock for cash is considered a(n):

Providing services to customers on account is considered a(n):

Payment of dividends to stockholders is considered a(n):

Investing cash flows would include which of the following?

Which of the following is NOT correct regarding the reporting of cash?

Cash flows from investing do not include cash flows from:

Operating cash flows would exclude:

The statement of cash flows reports cash flows from the activities of:

A company's cash balance is reported in which two financial statements?

Consider the following cash flow items: Pay amount owed to bank for previous borrowing. Pay utility costs. Purchase equipment to be used in operations. Purchase office supplies. Purchase one year of rent in advance. Pay workers' salaries. Pay for research and development costs. Pay taxes to the IRS. Sell common stock to investors. How many of these cash flow items involve financing activities?

Consider the following cash flow items: Pay amount owed to bank for previous borrowing. Pay utility costs. Purchase equipment to be used in operations. Purchase office supplies. Pay one year of rent in advance. Pay workers' salaries. Pay for research and development costs. Pay taxes to the IRS. Sell common stock to investors. How many of these cash flow items involve investing activities?

The following data were obtained from the bank statement and from the process of reconciling it: Bank service charges = $20 Deposit outstanding = $150 Interest earned on the bank account = $10 Checks outstanding = $400 Which items should be deducted from and added to the bank balance in completing the reconciliation?

After preparing a bank reconciliation, a check outstanding for the payment of advertising would be recorded with a:

After preparing a bank reconciliation, the service fee charged by the bank would be recorded with a:

After preparing a bank reconciliation, the collection of a note by the bank on a company's behalf would be recorded with a:

Which of the following is correct with respect to a bank reconciliation?

Which of the following is NOT a reason why a bank reconciliation is necessary?

Cash transactions that have been recorded by the company but not the bank include:

The following information was taken from the bank reconciliation for Mooner Sooner Inc. at the end of the year: Bank balance: $8,000 Checks outstanding: $5,800 Note collected by the bank: $1,500 Service fee: $20 Deposits outstanding: $4,000 NSF check (bad check) returned for $300 What is the correct cash balance that should be reported in Mooner Sooner's balance sheet at the end of the year?

Cash transactions recorded by the bank but not yet recorded by the company include all of the following except

Which of the following would NOT need to be accounted for in a bank reconciliation?

Regarding a bank reconciliation, which one of the following is an item recorded by the company but not by the bank?

When preparing a bank reconciliation, a deposit outstanding would be:

After preparing the bank reconciliation, an NSF check would result in which of the following when recording the adjustment to the company's cash balance?

Which of the following would not be considered good internal control for cash receipts?

Requiring the employee receiving cash from customers to also deposit the cash into the company's bank account.

Which of the following would NOT represent good controls over cash disbursements?

A customer purchased a $2,000 item at ApplianceWorld, paying with a credit card. ApplianceWorld is charged a 2% fee by the credit card company. When recording this sale, ApplianceWorld would:

McGregor Company allows customers to pay with credit cards. The credit card company charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor $200 for services provided, McGregor would:

Which of the following would NOT be recorded as a cash sale?

Which of the following would NOT represent good controls over cash receipts?

Common examples of cash equivalents include all of the following except:

Cash may not include:

Which of the following is considered cash for financial reporting purposes?

Which employees have an impact on the operation and effectiveness of internal controls?

Separation of duties refers to:

The components of internal control do not directly include:

A framework for designing an internal control system is provided by the:

Having an independent party assess each year the adequacy of the company's internal control procedures is an example of which detective control?

Checking actual outcome of individuals or processes against their expected outcome is an example of which detective control?

Having management periodically determine whether the amount of physical assets of the company match the accounting records is an example of which detective control?

Allowing only certain individuals to have passwords to conduct online purchases is an example of which preventive control?

Providing employees with appropriate guidance to ensure they have the knowledge necessary to carry out their job duties is an example of which preventive control?

Giving only management the right to make purchases over a certain amount is an example of which preventive control?

Keeping supplies in a locked room with access allowed only to authorized personnel is an example of which preventive control?

Which of the following is an example of detective controls?

Which of the following is not an example of preventive controls?

What is the concept behind separation of duties in establishing internal controls?

Which of the following best describes the goal of internal controls?

Which employees are the ones who must take final responsibility for the establishment and success of internal controls?

The act of collusion refers to:

Which of the following is NOT a design feature of effective internal controls?

The Sarbanes-Oxley Act (SOX) mandates which of the following?

Fraudulent reporting by management could include:

Which element of the fraud triangle do companies have the greatest ability to eliminate?

The three elements of the fraud triangle are:

Occupational fraud:

Under the provisions of the Sarbanes-Oxley Act, auditors must do which of the following?

Under the provisions of the Sarbanes-Oxley Act, corporate executives:

Which of the following does not represent a major provision of the Sarbanes-Oxley Act?

What key piece of legislation was passed in response to corporate accounting scandals by Enron, WorldCom, and others?