Question

Sarbanes-Oxley applies to

a.publicly held companies

b.privately held businesses

c.not-for-profit organizations

d.all of these

Which one of the following reflects a weak internal control system?

a.all employees must take their vacations

b.a single employee is responsible for collecting and recording of cash

c.all employees are well supervised

d.a single employee is responsible for comparing a receiving report to an invoice

The debit balance in Cash Short and Over at the end of an accounting period is reported as

a.a liability on the balance sheet

b.an expense on the income statement

c.income on the income statement

d.an asset on the balance sheet

A bank reconciliation should be prepared periodically because

a.the bank must make sure that its records are correct

b.any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected

c.the bank has not recorded all of its transactions

d.the company's records and the bank's records are in agreement

The bank reconciliation

a.is part of the internal control system

b.is for information purposes only

c.is sent to the bank for verification

d.should be prepared by an employee who records cash transactions

Journal entries based on the bank reconciliation are required in the company's accounts for

a.outstanding checks

b.deposits in transit

c.bank errors

d.book errors

Answer 1