90. Internal control systems are:
A. Developed by the Securities and Exchange Commission
for public companies.
B. Developed by the Small Business Administration for
C. Developed by the Internal Revenue Service for all
D. Required by
Sarbanes-Oxley (SOX) to be documented and certified if the company’s stock is
traded on an exchange.
E. Required only if a company plans to engage in
91. Cash, not including cash equivalents,
A. Postage stamps.
B. Coins, currency, and
D. Two-year certificates of deposit.
E. Money market funds.
92. Cash equivalents:
A. Are short-term, highly
liquid investment assets.
B. Include 6-month CDs.
C. Include checking accounts.
D. Are recorded in petty cash.
E. Include money orders.
93. Cash equivalents:
A. Include savings accounts.
B. Include checking accounts.
C. Are short-term
investments sufficiently close to their maturity date that their value is not
sensitive to interest rate changes.
D. Include time deposits.
E. Have no immediate value.
94. Cash equivalents:
A. Are readily convertible to a known cash amount.
B. Include short-term investments purchased within 3
months of their maturity dates.
C. Have a market value that is not sensitive to interest
D. Include short-term U.S. treasury bills.
E. All of these.
95. The following information is available for Holland
Company at December 31:
Based on this information, Holland Company should report Cash and Cash
Equivalents on December 31 of:
96. The following information is available for Johnson
Manufacturing Company at June 30:
Based on this information, Johnson Manufacturing Company should report Cash and
Cash Equivalents on June 30 of:
97. Banking activities include:
A. Bank accounts.
B. Bank deposits.
D. Electronic funds transfer.
E. All of these.
98. A check involves three parties:
A. The writer, the cashier, and the bank.
B. The maker, the payee,
and the bank.
C. The maker, the manager, and the payee.
D. The bookkeeper, the payee, and the bank.
E. The signer, the cashier, and the company.
99. A remittance advice is:
A. An explanation for a
payment by check.
B. A bank statement.
C. A voucher.
D. An EFT.
E. A cancelled check.