#53 A check:
A. Involves the writer, the signers, the cashier and the bank
B. Involves the maker, the payee and the bank
C. Involves the maker and the payee
D. Involves the bookkeeper, the payee and the bank
E. Involves the signer, the cashier and the company
#54 Why is it a matter of good internal control to deposit all cash receipts daily and make all payments for
goods and services by check?
A. When no paper documents are required there is increased convenience and lower cost
B. These actions control the access to cash and create an independent record of all cash activities
C. These procedures result in a more extensive testing of a company's records
D. The Sarbanes-Oxley Act requires these steps be taken by each publicly traded company
E. These procedures allow management to determine if projected cash receipts and disbursements came in
over or under budgeted amounts
#55 The entry necessary to establish a petty cash fund should include:
A A debit to Cash and a credit to Petty Cash
B. A debit to Cash and a credit to Cash Over and Short
C. A debit to Petty Cash and a credit to Cash
D. A debit to Petty Cash and a credit to Accounts Receivable
E. A debit to Cash and a credit to Petty Cash Over and Short
#56 The entry to record reimbursement of the petty cash fund for postage expense should include:
A A debit to Postage Expense
B. A debit to Petty Cash
C. A debit to Cash
D. A debit to Cash Short and Over
E. A debit to Supplies
#57 When a petty cash fund is in use:
A. Expenses paid with petty cash are recorded when the fund is replenished
B Petty Cash is debited when funds are replenished
C. Petty Cash is credited when funds are replenished
D. Expenses are not recorded
E. Cash is debited when funds are replenished
#58 In reimbursing the petty cash fund:
A. Cash is debited
B. Petty Cash is credited
C. Petty Cash is debited
? Appropriate expense accounts are debited
E. No expenses are recorded
