1. Ethics for AICPA members is governed by
a. generally accepted accounting principles.
b. the AICPA Code of Professional Conduct.
c. the CPA’s ethical guide.
d. Standards of Ethical Conduct for Management Accountants.
2. Payment by check is an important internal control over cash payments because
a. the check must be signed by an authorized official.
b. before signing the check, the official reviews the invoice supporting the payment.
c. Both a and b
d. None of the above
3. Sahara Company’s Cash account shows an ending balance of $650. The bank statement shows a $29 service charge and an NSF check for $150. A $240 deposit is in transit, and outstanding checks total $420. What is Sahara’s adjusted cash balance?
a. $291
b. $829
c. $471
d. $470