90. Internal control systems are:
A. Developed by the Securities and Exchange Commission for public companies.
B. Developed by the Small Business Administration for non-public companies.
C. Developed by the Internal Revenue Service for all U.S. companies.
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 interstate commerce.
91. Cash, not including cash equivalents, includes:
A. Postage stamps.
B. Coins, currency, and checking accounts.
C. IOUs.
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 rate changes.
D. Include short-term U.S. treasury bills.
E. All of these.
95. The following information is available for Holland Company at December 31:
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Based on this information, Holland Company should report Cash and Cash Equivalents on December 31 of:
A. $35,421
B. $50,421
C. $37,546
D. $36,246
E. $40,439
96. The following information is available for Johnson Manufacturing Company at June 30:
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Based on this information, Johnson Manufacturing Company should report Cash and Cash Equivalents on June 30 of:
A. $15,062
B. $20,146
C. $20,072
D. $19,205
E. $19,462
97. Banking activities include:
A. Bank accounts.
B. Bank deposits.
C. Checking.
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.
