help with questions for ACC?
4. When a firm uses internal auditors, it is adhering to which one of the following internal control elements?
a. risk assessment
b. monitoring
c. proofs and security measures
d. separating responsibilities for related operations
5. On the bank's accounting records, customers' accounts are normally shown as
a. debit balances
b. expenses
c. an asset
d. a liability
6. A bank statement
a. is a credit reference letter written by the depositor's bank.
b. lets a depositor know the financial position of the bank as of a certain date.
c. is a bill from the bank for services rendered.
d. shows the activity that increased or decreased the depositor's account balance.
7. 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. Checks marked NSF
d. Wiring of funds to other locations
8. A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a
a. signature card
b. deposit ticket
c. checkbook
d. bank card
9. A bank reconciliation should be prepared periodically because
a. the depositor's records and the bank's records are in agreement
b. the bank has not recorded all of its transactions
c. any differences between the depositor's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected
d. the bank must make sure that its records are correct
10. The bank reconciliation
a. should be prepared by an employee who records cash transactions
b. is part of the internal control system
c. is for information purposes only
d. is sent to the bank for verification
11. The amount of deposits in transit is included on the bank statement as a(n)
a. deduction from the balance per the depositor's books
b. deduction from the balance per bank statement
c. addition to the balance per bank statement
d. addition to the balance per depositor books
12.
The amount of the outstanding checks is included on the bank reconciliation as a(n)
a. deduction from the balance per depositor's records
b. addition to the balance per bank statement
c. deduction from the balance per bank statement
d. addition to the balance per depositor's records
13.
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)
a. deduction from the balance per depositor's records
b. addition to the balance per bank statement
c. deduction from the balance per bank statement
d. addition to the balance per depositor's records