Question

Hello, can you please answer the following question with a detail explanation to the answer of each question.

Thank you very much.

1 Internal control is defined as the procedures and processes used by a company to

A.safeguard its assets  INCORRECT

B.all of these

C.process information accurately

D. ensure compliance with laws and regulations

2 In a bank reconciliation, what journal entry is required on the books when it is determined that there are outstanding checks?

A. debit Cash; credit Accounts Payable

  B.debit Cash; credit Accounts Receivable   INCORRECT

  C.debit Accounts Receivable; credit Cash

  D.no entry is required

3 With a cash balance according to the bank statement of $11,000, deposits in transit of $1,500, outstanding checks of $300 and a bank service charge of $40, the bank section of the bank reconciliation would report and adjusted balance of

A.$12,500

B. $12,160

C. $12,200

D. $12,240  INCORRECT

4 With a cash balance according to the bank statement of $12,000, deposits in transit of $500, outstanding checks of $300 and a bank service charge of $40, the bank section of the bank reconciliation would report and adjusted balance of

A.$12,240  INCORRECT

  B.$12,200

  C.$12,500

  D.$12,160

Answer 1

1. B. All of these. Internal control is defined as the procedures and processes used by a company to safeguard its assets, process information accurately, ensure compliance with laws and regulations.

2. D. No journal entry is required in the books for recording outstanding checks.

3. C. $12,200. That is, 11000+1500-300=$12,200

4. B. $12,200. That is, 12000+500-300=$12,200