Question 1

The bank recorded a $56 deposit as $65.On a bank reconciliation this error would be corrected by:

Accepted Answer

A) subtracting $9 from the bank balance. 
B) adding $9 to the bank balance. 
C) adding $9 to the book balance. 
D) subtracting $9 from the book balance. 
A) subtracting $9 from the bank balance. 
B) adding $9 to the bank balance. 
C) adding $9 to the book balance. 
D) subtracting $9 from the book balance. A

Question 2

A company has $235,000 in credit sales.The company uses the allowance method to account for uncollectible accounts.The Allowance for Doubtful Accounts now has a $7,250 credit balance.If the company estimates 7% of credit sales will be uncollectible,what will be the amount of the journal entry to record estimated uncollectible accounts?

Accepted Answer

A) $16,450 
B) $23,700 
C) $7,250 
D) $9,200 
A) $16,450 
B) $23,700 
C) $7,250 
D) $9,200 A

Question 3

Online banking should NOT be used to reconcile the bank account.

Accepted Answer

A) True 
 B)False  False

Question 4

Pirates Party Supply deposited a check for $675,but it was recorded on their books as a check for $576.This error of $99 would be:

Accepted Answer

A) added to the bank balance. 
B) added to Pirate's book balance. 
C) subtracted from the bank balance. 
D) subtracted from Pirate's book balance. 
A) added to the bank balance. 
B) added to Pirate's book balance. 
C) subtracted from the bank balance. 
D) subtracted from Pirate's book balance.

Question 5

Northwest Plumbing's bank statement shows a bank balance of $43,267.The statement shows a bank service charge of $50.Northwest Plumbing's book balance shows outstanding checks of $5,288 and deposits in transit of $9,325.The adjusted balance on the bank side of the reconciliation would be:

Accepted Answer

A) $43,267. 
B) $43,217. 
C) $39,230. 
D) $47,304. 
A) $43,267. 
B) $43,217. 
C) $39,230. 
D) $47,304.

Question 6

On March 1,2014,Archer Inc.lent $3,500 to Ron Wood on a 1-year 6% promissory note.The amount of interest to be accrued on December 31 will be:

Accepted Answer

A) $210.00. 
B) $175.00. 
C) $157.50. 
D) $140.00. 
A) $210.00. 
B) $175.00. 
C) $157.50. 
D) $140.00.

Question 7

On a bank reconciliation,outstanding checks are:

Accepted Answer

A) added to the book balance. 
B) added to the bank balance. 
C) subtracted from the book balance. 
D) subtracted from the bank balance. 
A) added to the book balance. 
B) added to the bank balance. 
C) subtracted from the book balance. 
D) subtracted from the bank balance.

Question 8

In the last step of the procedure to properly control cash payments received in the mail,the ________ verifies the amount of the deposit and the total amount posted to the cash account.

Accepted Answer

A) bank 
B) accounting department 
C) Treasurer 
D) Controller 
A) bank 
B) accounting department 
C) Treasurer 
D) Controller

Question 9

Which of the following would NOT be considered a 90-day cash equivalent?

Accepted Answer

A) Time deposits 
B) Coin 
C) Treasury notes 
D) Certificates of deposits 
A) Time deposits 
B) Coin 
C) Treasury notes 
D) Certificates of deposits

Question 10

Bank reconciliations are an important part of internal control that should be performed daily.

Accepted Answer

A) True 
 B)False

Question 11

Accounts Receivable may be reported net of Allowance for Doubtful Accounts.

Accepted Answer

A) True 
 B)False

Question 12

Gallego & Co.reported sales of $515,000;beginning net Accounts Receivable of $212,000 and ending net Accounts Receivable of $224,000.Gallego & Co.'s receivable collection period (rounded to the nearest day)is:

Accepted Answer

A) 150. 
B) 159. 
C) 106. 
D) 155. 
A) 150. 
B) 159. 
C) 106. 
D) 155.

Question 13

U)S.Treasury notes must mature within ________ days of the Balance Sheet date in order to be considered cash equivalents.

Accepted Answer

A) 60 
B) 90 
C) 120 
D) 180 
A) 60 
B) 90 
C) 120 
D) 180

Question 14

The period end adjusting entry for bad debt expense under the direct write-off method is:

Accepted Answer

A) Bad Debt Expense,debit;Allowance for Uncollectible Accounts,credit. 
B) not required. 
C) Cash,debit;Accounts Receivable/customer name,credit. 
D) Bad Debt Expense,debit;Accounts Receivable/customer name,credit. 
A) Bad Debt Expense,debit;Allowance for Uncollectible Accounts,credit. 
B) not required. 
C) Cash,debit;Accounts Receivable/customer name,credit. 
D) Bad Debt Expense,debit;Accounts Receivable/customer name,credit.

Question 15

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

Accepted Answer

A) February 2,2015. 
B) February 3,2015. 
C) February 4,2015. 
D) February 5,2015. 
A) February 2,2015. 
B) February 3,2015. 
C) February 4,2015. 
D) February 5,2015.

Question 16

Deposits in transit are:

Accepted Answer

A) subtracted from the book balance. 
B) added to the book balance. 
C) subtracted from the bank balance. 
D) added to the bank balance. 
A) subtracted from the book balance. 
B) added to the book balance. 
C) subtracted from the bank balance. 
D) added to the bank balance.

Question 17

Thames,Inc.has given you the following information from its aging of Accounts Receivable.Using this information,determine the amount of the journal entry to record the estimated uncollectible accounts.
 
The current balance in Allowance for Doubtful Accounts is a $152 credit.

Accepted Answer

A) $856 
B) $1,008 
C) $1,160 
D) None of the above 
A) $856 
B) $1,008 
C) $1,160 
D) None of the above

Question 18

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

Accepted Answer

A) check for payment. 
B) receiving report. 
C) purchase order. 
D) invoice. 
A) check for payment. 
B) receiving report. 
C) purchase order. 
D) invoice.

Question 19

The net realizable value of Accounts Receivable is computed by subtracting the allowance for doubtful accounts from the amount in the Accounts Receivable control account.

Accepted Answer

A) True 
 B)False

Question 20

A company has $317,000 in credit sales.The company uses the allowance method to account for uncollectible accounts.The Allowance for Doubtful Accounts now has an $8,150 debit balance.If the company estimates 6% of credit sales will be uncollectible,what will be the amount of the journal entry to record estimated uncollectible accounts?

Accepted Answer

A) $8,150 
B) $27,170 
C) $10,870 
D) $19,020 
A) $8,150 
B) $27,170 
C) $10,870 
D) $19,020

The bank recorded a $56 deposit as $65.On a bank reconciliation this error would be corrected by:

Online banking should NOT be used to reconcile the bank account.

Pirates Party Supply deposited a check for $675,but it was recorded on their books as a check for $576.This error of $99 would be:

Northwest Plumbing's bank statement shows a bank balance of $43,267.The statement shows a bank service charge of $50.Northwest Plumbing's book balance shows outstanding checks of $5,288 and deposits in transit of $9,325.The adjusted balance on the bank side of the reconciliation would be:

On March 1,2014,Archer Inc.lent $3,500 to Ron Wood on a 1-year 6% promissory note.The amount of interest to be accrued on December 31 will be:

On a bank reconciliation,outstanding checks are:

In the last step of the procedure to properly control cash payments received in the mail,the ________ verifies the amount of the deposit and the total amount posted to the cash account.

Which of the following would NOT be considered a 90-day cash equivalent?

Bank reconciliations are an important part of internal control that should be performed daily.

Accounts Receivable may be reported net of Allowance for Doubtful Accounts.

Gallego & Co.reported sales of $515,000;beginning net Accounts Receivable of $212,000 and ending net Accounts Receivable of $224,000.Gallego & Co.'s receivable collection period (rounded to the nearest day)is:

U)S.Treasury notes must mature within ________ days of the Balance Sheet date in order to be considered cash equivalents.

The period end adjusting entry for bad debt expense under the direct write-off method is:

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

Deposits in transit are:

Thames,Inc.has given you the following information from its aging of Accounts Receivable.Using this information,determine the amount of the journal entry to record the estimated uncollectible accounts. The current balance in Allowance for Doubtful Accounts is a $152 credit.

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

The net realizable value of Accounts Receivable is computed by subtracting the allowance for doubtful accounts from the amount in the Accounts Receivable control account.

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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Exam 7: Cash and Receivables

The bank recorded a $56 deposit as $65.On a bank reconciliation this error would be corrected by:

Online banking should NOT be used to reconcile the bank account.

Pirates Party Supply deposited a check for $675,but it was recorded on their books as a check for $576.This error of $99 would be:

Northwest Plumbing's bank statement shows a bank balance of $43,267.The statement shows a bank service charge of $50.Northwest Plumbing's book balance shows outstanding checks of $5,288 and deposits in transit of $9,325.The adjusted balance on the bank side of the reconciliation would be:

On March 1,2014,Archer Inc.lent $3,500 to Ron Wood on a 1-year 6% promissory note.The amount of interest to be accrued on December 31 will be:

On a bank reconciliation,outstanding checks are:

In the last step of the procedure to properly control cash payments received in the mail,the ________ verifies the amount of the deposit and the total amount posted to the cash account.

Which of the following would NOT be considered a 90-day cash equivalent?

Bank reconciliations are an important part of internal control that should be performed daily.

Accounts Receivable may be reported net of Allowance for Doubtful Accounts.

Gallego & Co.reported sales of $515,000;beginning net Accounts Receivable of $212,000 and ending net Accounts Receivable of $224,000.Gallego & Co.'s receivable collection period (rounded to the nearest day)is:

U)S.Treasury notes must mature within ________ days of the Balance Sheet date in order to be considered cash equivalents.

The period end adjusting entry for bad debt expense under the direct write-off method is:

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

Deposits in transit are:

Thames,Inc.has given you the following information from its aging of Accounts Receivable.Using this information,determine the amount of the journal entry to record the estimated uncollectible accounts. The current balance in Allowance for Doubtful Accounts is a $152 credit.

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

The net realizable value of Accounts Receivable is computed by subtracting the allowance for doubtful accounts from the amount in the Accounts Receivable control account.

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

Filters