Reference no: EM132581826

Question 1. Which of the following would be considered an element of good internal control:

A. Require monthly reconciliation of bank accounts with the cash account.

B. Require that all cash receipts be deposited on a daily basis.

C. Require that approval for cash payments and the signing of checks be assigned to different individuals.

D. All of the above are good elements of internal control.

Question 2. Ikhsan Sdn. Bhd. made a bank deposit on 30 th April that did not appear on the bank statement dated as of 30 th April. In preparing the 30 th April bank reconciliation, the company should:

A. Inform the bank to subtract RM1,000 from the company's bank account.

B. Deduct the deposit from the Bank statement balance.

C. Deduct the deposit from the adjusted Cash account balance.

D. Add the deposit to the adjusted Cash account balance.

Question 3. Monitor Company's bank statement showed an ending balance of RM10,000. Items appearing in the bank reconciliation included: outstanding cheques, RM500; deposits in transit, RM1,000; bank service charges, RM10; and Orange Company's cheque incorrectly charged to Monitor's bank account by the bank, RM110. The correct cash balance at the end of the month should be reported as:

A. RM 9,390

B. RM 9,500

C. RM 11,610

D. RM 10,620

Question 4. The bank statement included a cheque payment of RM 650 charged by the bank. The cheque does not belong to company. This error would be corrected on the bank reconciliation by:

A. Debit its cash account RM650.

B. Credit its cash account RM650.

C. Inform the bank to add RM650 to the company's bank account.

D. Deduct RM650 from the adjusted cash account balance.

Question 5. A cheque issued by a company and recorded on its books but not yet paid by its bank is referred to as:

A. A non-sufficient fund or returned cheque.

B. An outstanding cheque.

C. A cancelled cheque.

D. A deposit in transit.