Balance Sheet and Points

1. A NSF check should appear in which section of the bank reconciliation? (Points : 2) Addition to the balance per books. Deduction from the balance per bank. Addition to the balance per bank. Deduction from the balance per books. |

2. A consequence of separation of duties is that (Points : 2) theft by employees becomes impossible. operations become extremely inefficient because of constant training of employees. more employees will need to be bonded. theft is still possible when several employees are involved. |

3. Which of the following is not included in the cash disbursements section of a cash budget? (Points : 2) Payments for materials. Payments for income taxes. Repayments of borrowed funds. All of these are included. |

4. IFRS
Cash equivalents are defined by IFRS as (Points : 2) cash on hand. demand deposits. cash on hand and demand deposits. short-term, highly liquid investments that are readily convertible into known amounts of cash. |

5. All of the following actions would strengthen internal control over a petty cash fund except (Points : 2) surprise counts by a supervisor. cancellation of paid vouchers. submission of supporting documents. multiple petty cash custodians. |

6. Which of the following would be added to the balance per books on a bank reconciliation? (Points : 2) Outstanding checks. Deposits in transit. Notes collected by the bank. NSF check. |

7. Which of the following is not a necessary internal control procedure for the replenishment of the petty cash fund? (Points : 2) Segregation of duties. Documentation procedures. Independent internal verification. Employee background check. |

8. Collier Company has implemented a just-in-time system, which relies on suppliers to deliver goods for