ACCT 2000 EXAM 2 LSU TERMS EXAMS SET
2026 PREMIUM QUESTIONS AND ANSWERS
FULL SOLUTION VIEW AHEAD
●● Internal Control System.
Answer: set of policies and procedures established by company to
provide reasonable assurance that firm's objectives will be met
●● 2 common internal controls over cash.
Answer: 1. segregation of duties
2. prepare bank reconciliations
●● Segregation of duties.
Answer: - authorization: approving transactions & decisions
- recording: maintaining journals & ledgers
- custody: handling cash, maintaining an inventory storeroom, receiving
incoming customer checks, writing checks on an org's bank acct
●● collusion.
Answer: when 2 or more people work together to commit fraud
●● deposits in transit.
, Answer: deposits recorded by company but not bank
●● outstanding checks.
Answer: withdrawals recorded by company but not bank
●● interest earned.
Answer: deposits recorded by bank but not company
●● bank service charge/NSF checks.
Answer: withdrawals recorded by bank but not company
●● 5 reasons bank balance & gender ledger balance are not the same.
Answer: 1. deposits in transit
2. outstanding checks
3. interest earned
4. bank service charge/NSF checks
5. errors
●● Balance per bank.
Answer: Balance per bank
+ deposits in transit
- outstanding checks
2026 PREMIUM QUESTIONS AND ANSWERS
FULL SOLUTION VIEW AHEAD
●● Internal Control System.
Answer: set of policies and procedures established by company to
provide reasonable assurance that firm's objectives will be met
●● 2 common internal controls over cash.
Answer: 1. segregation of duties
2. prepare bank reconciliations
●● Segregation of duties.
Answer: - authorization: approving transactions & decisions
- recording: maintaining journals & ledgers
- custody: handling cash, maintaining an inventory storeroom, receiving
incoming customer checks, writing checks on an org's bank acct
●● collusion.
Answer: when 2 or more people work together to commit fraud
●● deposits in transit.
, Answer: deposits recorded by company but not bank
●● outstanding checks.
Answer: withdrawals recorded by company but not bank
●● interest earned.
Answer: deposits recorded by bank but not company
●● bank service charge/NSF checks.
Answer: withdrawals recorded by bank but not company
●● 5 reasons bank balance & gender ledger balance are not the same.
Answer: 1. deposits in transit
2. outstanding checks
3. interest earned
4. bank service charge/NSF checks
5. errors
●● Balance per bank.
Answer: Balance per bank
+ deposits in transit
- outstanding checks
