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    Changing an accounting system, internal controls, purchases

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    1. Which of the following is NOT one of the three phases which is needed when changing an accounting system, either in its entirety or in part?
    Analysis
    Design
    Review
    Implementation

    2. Which of the following is NOT an element of Internal Controls?
    To protect assets from misuse
    Ensure the accuracy of business information
    Ensure that laws and regulations are followed
    To ensure that the company's policies are in place to maximize profits

    3. At the end of the month, the total of the amount column of the revenue journal is posted as a
    Debit to Accounts Receivable and a credit to Cash
    Debit to Accounts Receivable and a credit to Fees Earned
    Debit to Cash and a credit to Fees Earned
    Debit to Cash and a credit to Accounts Payable

    4. Which of the following transactions is recorded in the purchases journal?
    Purchase of store supplies on account
    Return of damaged office equipment
    Purchase of store supplies for cash
    Purchase of office equipment for cash

    5. Which of the following transactions is recorded in the revenue journal?
    Sale of excess office equipment for cash
    Rendering services for cash
    Rendering services on account
    Sale of excess office equipment on account

    6. The objectives of internal control are to
    Control the internal organization of the accounting department personnel and
    equipment
    Provide reasonable assurance that operations are managed to achieve goals,
    financial reports are accurate, and laws and regulations are complied with
    Prevent fraud, and promote the social interest of the company
    Provide control over "internal-use only" reports and employee internal conduct

    7. A necessary element of internal control is
    Database
    Systems design
    Systems analysis
    Information and communication

    8. Which of the following should NOT be considered cash by an accountant?
    Money orders
    Bank checking accounts
    Postage stamps
    Travelers' checks

    9. The debit balance in Cash Short and Over at the end of an accounting period is reported as
    An expense on the income statement
    Income on the income statement
    An asset on the balance sheet
    A liability on the balance sheet

    10. Which one of the following would NOT cause a bank to debit a company's account?
    Bank service charge
    Collection of a note receivable
    Checks marked NSF
    Wiring of funds to other locations

    11. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)
    Addition to the balance per the company's records
    Addition to the balance per the bank statement
    Deduction from the balance per the bank statement
    Deduction from the balance per the company's records

    12. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. What entry is required in the company's accounts?
    Debit Accounts Payable; credit Cash
    Debit Cash; credit Accounts Receivable
    Debit Cash; credit Accounts Payable
    Debit Accounts Receivable; credit Cash

    13. Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?
    Debit Miscellaneous Administrative Expense; credit Cash
    Debit Cash; credit Other Income
    Debit Cash; credit Accounts Payable
    Debit Accounts Payable; credit Cash

    14. Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. What entry is required in the company's accounts?
    Debit Sales; credit Cash
    Debit Cash; credit Accounts Receivable
    Debit Cash; credit Sales
    Debit Accounts Receivable; credit Cash

    15. A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a
    Credit to Petty Cash for $82.
    Debit to Cash for $110.
    Debit to Cash Over and Short for $12.
    Credit to Cash for $110

    16. A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a
    Credit to Petty Cash for $96.50.
    Credit to Cash for $89.
    Debit to Cash Short and Over for $3.50.
    Credit to Cash Short and Over for $3.50.

    17. Which of the following would NOT be included with the Cash and Equivalents on the Balance Sheet?
    Commercial Paper
    Short-Term Receivables
    Certificates of Deposit
    Money Market Mutual Funds

    6. (Use the data found in the table below) Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on September 30? (TABLE ATTACHED), check the attached file:

    $800
    $650
    $750
    $700

    8. The following lots of a particular commodity were available for sale during the year (TABLE ATTACHED), check the attached file:

    $1,250
    $1,150
    $1,275
    $1,050

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    https://brainmass.com/business/accounting/changing-an-accounting-system-internal-controls-purchases-502194

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    1. Which of the following is NOT one of the three phases which is needed when changing an accounting system, either in its entirety or in part?
    Analysis
    Design
    **Review
    Implementation

    Review is done to determine if change is needed.

    2. Which of the following is NOT an element of Internal Controls?
    To protect assets from misuse
    Ensure the accuracy of business information
    Ensure that laws and regulations are followed
    **To ensure that the company's policies are in place to maximize profits

    Controls safeguard assets, keep records accurate, and ensure compliance. They don't ensure profits.

    3. At the end of the month, the total of the amount column of the revenue journal is posted as a
    Debit to Accounts Receivable and a credit to Cash
    **Debit to Accounts Receivable and a credit to Fees Earned
    Debit to Cash and a credit to Fees Earned
    Debit to Cash and a credit to Accounts Payable

    Sales Revenue journal will be posted to Fees Earned (on credit).

    4. Which of the following transactions is recorded in the purchases journal?
    **Purchase of store supplies on account
    Return of damaged office equipment
    Purchase of store supplies for cash
    Purchase of office equipment for cash

    The Purchases Journal is a special journal designed to record a single type of frequently occurring transaction -- in this case, credit purchases.

    5. Which of the following transactions is recorded in the revenue journal?
    Sale of excess office equipment for cash
    Rendering services for cash
    **Rendering services on account
    Sale of excess office equipment on account

    Sales Revenue journal will be ...

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