ACC101 Exam questions and
answers well defined 100%
The same person opens the incoming mail and posts the accounts receivable
subsidiary ledger. - ANS✅✅Segregation of duties
Three people handle cash sales from the same cash register drawer. - ANS✅✅Establishment of
responsibility
A clothing store is experiencing a high level of inventory shortages because people
try on clothing and walk out of the store without paying for the merchandise - ANS✅✅Physical
control devices
The person who is authorized to sign checks approves purchase orders for payment. -
ANS✅✅Segregation of duties
Some cash payments are not recorded because checks are not prenumbered. -
ANS✅✅Documentation procedures
Cash shortages are not discovered because there are no daily cash counts by
supervisors. - ANS✅✅Independent internal verification
The treasurer of the company has not taken a vacation for over 20 years. - ANS✅✅Human
resource controls
At August 31, Blossom Company has a cash balance per books of $10.600 and the
following additional data from the bank statement: charge for printing Blossom Company
checks $35 and interest earned on checking account balance $40. In
addition, Blossom Company has outstanding checks of $1,160.
Determine the adjusted cash balance per books at August 31. ________ - ANS✅✅10,605
Adjust In Books - ANS✅✅1. A check written to the company for $350 by A1 Service Company was
returned NSF.
, 2. The bank charged the company $46 for printing checks.
3. A debit memorandum reported an EFT of $178 to Gulf State Utilities.
Ace Cosmetics Corporation purchased land adjacent to its plant to improve access for
trucks making deliveries. Expenditures incurred in purchasing the land were as follows:
purchase price, $55,000; broker's fees, $6,000; title search and other fees, $5,000;
demolition of an old building on the property, $5,700; grading, $1,200; digging foundation
for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500.
List the items and amounts that should be included in the Land account. - ANS✅✅Land= 72,900
Which of the following is not one of the main factors that contribute to fraudulent
activity? - ANS✅✅Incompatible Duties
All of the following are examples of internal control procedures except - ANS✅✅customer
satisfaction surveys
An NSF check should appear in which section of the bank reconciliation? - ANS✅✅Deduction from
the balance per books.
Which of the following would be deducted from the balance per books on a bank
reconciliation? - ANS✅✅Service charges
If a check correctly written and paid by the bank for $628 is incorrectly recorded on the
company's books for $682, the appropriate treatment on the bank reconciliation would
be to - ANS✅✅add $54 to the book's balance.
For which of the following errors should the appropriate amount be added to the balance
per bank on a bank reconciliation? - ANS✅✅Deposit of $600 recorded by the bank as $60
Notification by the bank that a deposited customer check was returned NSF requires that
answers well defined 100%
The same person opens the incoming mail and posts the accounts receivable
subsidiary ledger. - ANS✅✅Segregation of duties
Three people handle cash sales from the same cash register drawer. - ANS✅✅Establishment of
responsibility
A clothing store is experiencing a high level of inventory shortages because people
try on clothing and walk out of the store without paying for the merchandise - ANS✅✅Physical
control devices
The person who is authorized to sign checks approves purchase orders for payment. -
ANS✅✅Segregation of duties
Some cash payments are not recorded because checks are not prenumbered. -
ANS✅✅Documentation procedures
Cash shortages are not discovered because there are no daily cash counts by
supervisors. - ANS✅✅Independent internal verification
The treasurer of the company has not taken a vacation for over 20 years. - ANS✅✅Human
resource controls
At August 31, Blossom Company has a cash balance per books of $10.600 and the
following additional data from the bank statement: charge for printing Blossom Company
checks $35 and interest earned on checking account balance $40. In
addition, Blossom Company has outstanding checks of $1,160.
Determine the adjusted cash balance per books at August 31. ________ - ANS✅✅10,605
Adjust In Books - ANS✅✅1. A check written to the company for $350 by A1 Service Company was
returned NSF.
, 2. The bank charged the company $46 for printing checks.
3. A debit memorandum reported an EFT of $178 to Gulf State Utilities.
Ace Cosmetics Corporation purchased land adjacent to its plant to improve access for
trucks making deliveries. Expenditures incurred in purchasing the land were as follows:
purchase price, $55,000; broker's fees, $6,000; title search and other fees, $5,000;
demolition of an old building on the property, $5,700; grading, $1,200; digging foundation
for the road, $3,000; laying and paving driveway, $25,000; lighting $7,500; signs, $1,500.
List the items and amounts that should be included in the Land account. - ANS✅✅Land= 72,900
Which of the following is not one of the main factors that contribute to fraudulent
activity? - ANS✅✅Incompatible Duties
All of the following are examples of internal control procedures except - ANS✅✅customer
satisfaction surveys
An NSF check should appear in which section of the bank reconciliation? - ANS✅✅Deduction from
the balance per books.
Which of the following would be deducted from the balance per books on a bank
reconciliation? - ANS✅✅Service charges
If a check correctly written and paid by the bank for $628 is incorrectly recorded on the
company's books for $682, the appropriate treatment on the bank reconciliation would
be to - ANS✅✅add $54 to the book's balance.
For which of the following errors should the appropriate amount be added to the balance
per bank on a bank reconciliation? - ANS✅✅Deposit of $600 recorded by the bank as $60
Notification by the bank that a deposited customer check was returned NSF requires that
