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ACC 162 Planning for capital investments PART 2 TRUE-FALSE STATEMENTS 1. Capital budgeting decisions usually involve large investments and often have a significant impact on a company's future profitability. 2. The capital budgeting committee ultimately approves the capital expenditure budget for the year. 3. For purposes of capital budgeting, estimated cash inflows and outflows are preferred for inputs into the capital budgeting dec ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 9 BRIEF EXERCISES BE 148 Match the principle of internal control to each of the following cases. a) Establishment of responsibility b) Segregation of duties c) Accountability for assets d) Documentation procedures e) Physical, mechanical and electronic controls _____ 1. Employees’ time is tracked using a time clock. _____ 2. Employees who receive shipments of goods do not have access to ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 5 MULTIPLE CHOICE QUESTIONS 61. Physical controls to safeguard assets do not include a. cashier department supervisors. b. vaults. c. employee identification badges. d. security guards. 62. In large companies, the independent internal verification procedure is often assigned to a. computer operators. b. management. c. internal auditors. d. outside CPAs. 8 - 10 Test Bank for Accounting Pri ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 2 TRUE-FALSE STATEMENTS 1. Internal control is mainly concerned with the amount of authority a supervisor exercises over a subordinate. 2. A highly automated computerized system of accounting eliminates the need for internal control. 3. The safeguarding of assets is an objective of a company's system of internal control. 4. Management is responsible for establishing a system of internal control. ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 7 MULTIPLE CHOICE QUESTIONS 101. Which one of the following would not cause a bank to debit a depositor's account? a. Bank service charge b. Collection of a note receivable c. Wiring of funds to other locations d. Checks marked NSF 102. A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account which is a. a contra-asset account. b. a liab ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 3 TRUE-FALSE STATEMENTS 21. A voucher system is used by many large companies as a means of controlling cash receipts. 22. The petty cash fund eliminates the need for a bank checking account. 23. Cash register overages are deposited in the petty cash fund and cash shortages are made-up from the petty cash fund. 24. A deposit ticket is a negotiable instrument that can be transferred to another p ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 1 CHAPTER STUDY OBJECTIVES 1. Define internal control. 2. Identify the principles of internal control. 3. Explain the applications of internal control principles to cash receipts 4. Explain the applications of internal control principles to cash disbursements. 8 - 4 Test Bank for Accounting Principles, Eighth Edition 5. Describe the operation of a petty cash fund. 6. ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 10 Ex. 171 Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item. Code A Add to cash balance per books B Deduct from cash balance per books C Add to cash balance per bank D Deduct from cash balance per bank E Does not affect the bank reconciliation Items: _ ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 8 MULTIPLE CHOICE QUESTIONS 8 - 18 Test Bank for Accounting Principles, Eighth Edition 121. Jansen 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 adjus ...

Other / Other 05 Nov 2016

CHAPTER 8 INTERNAL CONTROL AND CASH PART 6 MULTIPLE CHOICE QUESTIONS 81. An employee authorized to sign checks should not record a. owner cash contributions. b. mail receipts. c. cash disbursement transactions. d. sales transactions. 82. A voucher system is a series of prescribed control procedures a. to check the credit worthiness of customers. b. designed to assure that disbursements by check are proper. c. which eliminates the ne ...

Other / Other 05 Nov 2016