Fin 534 quiz 9 (15 questions with answers) 99,99 % scored
FIN 534 Quiz 9 (15 questions with answers) 99,99 % Scored PLEASE DOWNLOAD HEREQuestion 1The Sarbanes-Oxley Act requires that all U.S. corporations under the juris-dictionof the Securities and Exchange Commissionmaintain an adequate system of internal control.must file reports with the National Commission on Fraudulent Financial Reporting.have at least one foreign subsidiary.maintain accounting records of foreign branches and subsidiaries in the localforeign currency.Question 2The control principle related to not having the same person authorize and pay forgoods is known assegregation of duties.establishment of responsibility.independent internal verification.rotation of duties.Question 3Maximum benefit from independent internal verification is obtained whenit is done by the employee possessing custody of the asset.discrepancies are reported to management.it is done at the time of the audit.it is made on a pre-announced basis.Question 4Allowing only designated personnel to handle cash receipts is an example of
documentation procedures.independent internal verification.establishment of responsibility.segregation of duties.Question 5Storing cash in a company safe is an application of which internal controlprinciple?Segregation of dutiesDocumentation proceduresPhysical controlsEstablishment of responsibilityQuestion 6Reconciling the bank statement monthly is an example ofindependent internal verification.documentation procedures.establishment of responsibility.segregation of duties.Question 7A voucher system is a series of prescribed control proceduresto check the credit worthiness of customers.which eliminates the need for a sales journal.designed to assure that disbursements by check are proper.specifically designed for small firms who may not have checking accounts.Question 8The size of the petty cash fund is dependent on
the size of the regular cash account.the wishes of the custodian of the fund.anticipated disbursements for the year.anticipated disbursements for a three- to four-week period.Question 9A $100 petty cash fund has cash of $18 and receipts of $86. The journal entry toreplenish the account would include acredit to Petty Cash for $86.credit to Cash for $86.debit to Cash for $86.credit to Cash Over and Short for $4.Question 10A check returned by the bank marked "NSF" meansno signature found.not sufficient funds.no service fee.not satisfactorily filled-out.Question 11A bank reconciliation should be preparedby the person who is authorized to sign checks.when an employee is suspected of fraud.to explain any difference between the depositors balance per books and thebalance per bank.whenever the bank refuses to lend the company money.Question 12Deposits in transit
have been recorded on the companys books but not yet by the bank.have not been recorded by the bank or the company.are checks from customers which have not yet been received by the company.have been recorded by the bank but not yet by the company.Question 13When making a payment from the petty cash fund for postage stamps, thefollowing journal entry is made.a. Office Supplies XXXXPetty Cash XXXXb. Postage Expense XXXXPetty Cash XXXXc. Miscellaneous Expense XXXXPetty Cash XXXXd. No entry is made.d.c.a.b.Question 14A bank may issue a credit memorandum forthe collection of a note receivable for the depositor by the bank.a bank service charge.an NSF (not sufficient funds) check from a customer.the cost of printing checks.Question 15
Cash equivalents are highly liquid investments that can be converted into aspecific amount of cash with maturities of1 month or less when purchased.1 year or less when purchased.6 months or less when purchased.3 months or less when purchased.