Internal Controls - Financial Accounting - Quiz, Exercises of Financial Accounting

Download Internal Controls - Financial Accounting - Quiz and more Exercises Financial Accounting in PDF only on Docsity! Page 1 of 2 Name __________________________________ Quiz 1. Internal controls are concerned with A) only manual systems of accounting. B) the extent of government regulations. C) safeguarding assets. D) preparing income tax returns. 2. Control over cash disbursements is generally more effective when A) all bills are paid in cash. B) disbursements are made by the accounts payable subsidiary clerk. C) payments are made by check. D) all purchases are made on credit. 3. Which of the following would be added to the balance per books on a bank reconciliation? A) Outstanding checks. B) Deposits in transit. C) Notes collected by the bank. D) NSF check. 4. Karlin Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 $6,600 Deposits in transit 900 Notes receivable and interest collected by bank 2,220 Bank charge for check printing 75 Outstanding checks 4,500 NSF check 420 The adjusted cash balance per books on April 30 is A) $9,225. B) $8,820. C) $8,325. D) $9,165. 5. Which of the following is not a basic principle of cash management? A) Increase collection of receivables. B) Keep inventory levels high. C) Delay payment of liabilities. D) Invest idle cash. Docsity.com