1.How would customer's NSF checks be dealt with in a bank reconciliation? a. added to company’s book balance b. deducted from company’s book balance c. added to bank statement balance d. deducted from bank statement balance 2. Which one of the following documents is used in the control of cash receipts? a. Purchase requisitions b. Receiving reports c. Canceled checks from customers d. Bank deposit slips 3.The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. All documents attached to an invoice approval form are canceled before a check is signed. a. Adheres to sound internal control procedures b. Violates sound internal control procedures c. Neither strengthens nor violates internal control 4.In the reconciliation of a bank statement, "deposits in transit" should be: a. added to the unadjusted book balance b. subtracted from the unadjusted bank balance c. added to the unadjusted bank balance d. subtracted from the unadjusted bank balance
1.How would customer's NSF checks be dealt with in a bank reconciliation?
a. added to company’s book balance
b. deducted from company’s book balance
c. added to bank statement balance
d. deducted from bank statement balance
2. Which one of the following documents is used in the control of cash receipts?
a. Purchase requisitions
b. Receiving reports
c. Canceled checks from customers
d. Bank deposit slips
3.The following set of items describes activities completed by a company in purchasing and paying for merchandise. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures.
All documents attached to an invoice approval form are canceled before a check is signed.
a. Adheres to sound internal control procedures
b. Violates sound internal control procedures
c. Neither strengthens nor violates internal control
4.In the reconciliation of a bank statement, "deposits in transit" should be:
a. added to the unadjusted book balance
b. subtracted from the unadjusted bank balance
c. added to the unadjusted bank balance
d. subtracted from the unadjusted bank balance
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