test4_ch07-8 - Achievement Test 4 Chapters 7 and 8...

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Achievement Test 4: Chapters 7 and 8 Name ___________________________ Financial Accounting, 5e Instructor ________________________ Section # _________ Date __________ Part I II III IV V VI VII Total Points 30 10 20 10 10 10 10 100 Score PART I — MULTIPLE CHOICE (30 points) Instructions: Designate the best answer for each of the following questions. ____ 1. The use of a cash register for cash receipts is an example of the internal control principle of a. documentation procedures. b. physical, mechanical, and electronic controls. c. independent internal verification. d. segregation of duties. ____ 2. Cash includes all of the following items except a. checks. b. currency. c. money orders. d. all of the above are included. ____ 3. The objectives of internal control are to a. prevent unintentional errors and irregularities. b. safeguard assets and enhance the accuracy and reliability of the accounting records. c. enhance the accuracy and reliability of financial statements. d. safeguard assets and prevent thefts. ____ 4. When a petty cash fund is in use, a. an entry must be made to the appropriate expense, asset, etc. account when a disbursement is made. b. the size of the fund should be such that it can be used to cash employees' bi- monthly payroll checks. c. entries are generally made to Petty Cash only when it is initially set up or the stipulated amount of the fund is changed. d. an entry is made to Petty Cash when the fund is replenished to its original amount.
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Test Bank for Financial Accounting, Fifth Edition ____ 5. Lack of agreement between the cash balance per bank and the cash balance per books is due to a. errors and poor internal control. b. errors and bank memoranda. c. time lags and bank memoranda. d. time lags and errors. ____ 6. The bank statement that a depositor receives from the bank includes a. notification of amounts deducted by the bank to cover such things as the cost of a supply of new checks ordered by the depositor. b. a designation of which checks are still outstanding at the end of the month. c. a designation of which deposits are in transit at the end of the month. d. notification of errors made by the depositor in recording checks written during the month in the depositor's accounts. ____ 7. The objectives of financial reporting address each of the following questions except a.What information do financial statement users need? b.How knowledgeable about accounting are financial statement users? c.Who uses financial statements? d.How should financial information be recorded in the accounting records? _____ 8. Qualitative characteristics include all of the following except a. flexibility. b. reliability. c. comparability. d. relevance. _____ 9. An objective of financial reporting is to provide information that is mainly useful to a. governmental taxing bodies.
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test4_ch07-8 - Achievement Test 4 Chapters 7 and 8...

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