Exam 7: Cash and Receivables

Charmed, Inc. had credit sales for the period of $144,000. The balance in Allowance for Doubtful Accounts is a debit of $653. If Charmed estimates that 3% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?

(Multiple Choice)

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Question 21

Which of the following would indicate poor internal control over Accounts Receivable?

(Multiple Choice)

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Question 22

A company with a current ratio of 1.90 means that the company:

(Multiple Choice)

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Question 23

Illusions, Inc. deposited $1,000 into its bank account at the end of the month, but the bank statement does not show the deposit. This $1,000 is an example of a(n):

(Multiple Choice)

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Question 24

The _____ is a more stringent measure of a business's liquidity.

(Multiple Choice)

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Question 25

When using the allowance method for uncollectible accounts, the aging method is called the:

(Multiple Choice)

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Question 26

A 4-month promissory note dated on July 17 will be due on November 17.

(True/False)

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Question 27

Cash is one of the least vulnerable assets that a business has.

(True/False)

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Question 28

Which of the following is NOT true concerning NSF checks:

(Multiple Choice)

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Question 29

Streamlined payment procedures now involve the use of electronic data interchange and electronic funds transfer between and among suppliers and merchandisers.

(True/False)

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Question 30

Accounts Receivable are more formal and usually longer in terms than notes receivable.

(True/False)

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Question 31

Which is NOT a benefit to extending credit to customers?

(Multiple Choice)

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Question 32

TLR Corporation lent $32,000 to Blitz, Inc. for 75 days at 7% interest on November 22, 2013. How much interest will have accrued to TLR Corporation on December 31, 2013, assuming a 360-day year? (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

(Multiple Choice)

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Question 33

Cash is listed first on the Balance Sheet because it is the least liquid asset.

(True/False)

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Question 34

Quicksilver Co. has cash of $35,000; net Accounts Receivable of $43,000; short-term investments of $23,000 and inventory of $30,000. It also has $28,000 in current liabilities and $54,000 in long-term liabilities. The current ratio for Quicksilver is:

(Multiple Choice)

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Question 35

Cash equivalents may include money orders and traveler's checks.

(True/False)

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Question 36

If possible, the bank reconciler should have no other duties relating to cash transactions in the business.

(True/False)

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Question 37

The process of acquiring merchandise from a supplier begins with the:

(Multiple Choice)

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Question 38

An 83-day note issued on November 13, 2014 will mature on:

(Multiple Choice)

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Question 39

Stella Company wants to increase the size of its petty cash fund from $100 to $260, the journal entry will be:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 165

Charmed, Inc. had credit sales for the period of $144,000. The balance in Allowance for Doubtful Accounts is a debit of $653. If Charmed estimates that 3% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?

Which of the following would indicate poor internal control over Accounts Receivable?

A company with a current ratio of 1.90 means that the company:

Illusions, Inc. deposited $1,000 into its bank account at the end of the month, but the bank statement does not show the deposit. This $1,000 is an example of a(n):

The _____ is a more stringent measure of a business's liquidity.

When using the allowance method for uncollectible accounts, the aging method is called the:

A 4-month promissory note dated on July 17 will be due on November 17.

Cash is one of the least vulnerable assets that a business has.

Which of the following is NOT true concerning NSF checks:

Streamlined payment procedures now involve the use of electronic data interchange and electronic funds transfer between and among suppliers and merchandisers.

Accounts Receivable are more formal and usually longer in terms than notes receivable.

Which is NOT a benefit to extending credit to customers?

TLR Corporation lent $32,000 to Blitz, Inc. for 75 days at 7% interest on November 22, 2013. How much interest will have accrued to TLR Corporation on December 31, 2013, assuming a 360-day year? (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

Cash is listed first on the Balance Sheet because it is the least liquid asset.

Quicksilver Co. has cash of $35,000; net Accounts Receivable of $43,000; short-term investments of $23,000 and inventory of $30,000. It also has $28,000 in current liabilities and $54,000 in long-term liabilities. The current ratio for Quicksilver is:

Cash equivalents may include money orders and traveler's checks.

If possible, the bank reconciler should have no other duties relating to cash transactions in the business.

The process of acquiring merchandise from a supplier begins with the:

An 83-day note issued on November 13, 2014 will mature on:

Stella Company wants to increase the size of its petty cash fund from $100 to $260, the journal entry will be:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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