AC/113 AC113 AC 113 UNIT 6 QUIZ

 1.

Question :

Replenishing the petty cash fund will include an adjustment to __________.

Student Answer:

 expense accounts

 petty cash

 capital stock

 accounts payable

Question 2.

Question :

The bank statement reports an ending balance of $5,650 after deducting $120 in service charges and an addition of $2,400 for a note collected by the bank on the company's behalf. The depositor reports an ending balance of $720 and determines that deposits in transit equal $2,100 and outstanding checks equal $4,750. What is the adjusted balance for the bank?

Student Answer:

 $900

 $3,000

 $8,300

 None of the above

Question 3.

Question :

The depositor's checking account balance in the bank's records is a(n) ________.

Student Answer:

 Liability

 Asset

 Revenue

 Expense

Question 4.

Question :

If a company is required to maintain a minimum cash balance in their account, this balance is called a:

Student Answer:

 Minimum balance

 Required balance

 Compensating balance

 True balance

Question 5.

Question :

The objectives of internal control include all of the following EXCEPT:

Student Answer:

 To give accountants more “busy-work”

 To provide reasonable assurance that business information is accurate

 To provide reasonable assurance that assets are safeguarded

 To provide reasonable assurance that employees comply with laws