Exam 4: Payment for Goods and Services: Cash and Accounts Receivable

The company has a policy of waiting at least a month before calling the bank about errors on the bank statement.This saves time because most errors correct themselves.This is an internal control ________.

(Multiple Choice)

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Question 101

The Multiplex Mart accepts VISA.During March,$140,000 in credit card sales were made.VISA charges 3% of sales as its service fee.Prepare the entry to record the credit card sales.Include the account titles and amounts.

(Essay)

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(75)

Question 102

At December 31,2011 a company's Accounts receivable balance was $12,600 and its Allowance for uncollectible accounts was $(1,000). Part A: Show the effect of the following events on the accounting equation,including both account titles and amounts. Part B: Select the column which represents the 2012 financial statement where the item will appear,and fill in the correct dollar amount.

(Essay)

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Question 103

Employees who sign checks should not record cash payments in the accounting records.

(True/False)

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Question 104

Quality Auto Parts had credit sales of $50,889.Average net accounts receivable were $566.Calculate the accounts receivable turnover for the period.

(Short Answer)

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Question 105

Put an X in the appropriate box to show how each of these items would appear on a company's bank reconciliation.Put an asterisk (*)next to the items for which the company must record an adjusting entry:

(Essay)

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Question 106

Goldilocks is the bookkeeper for Three Bears Company.She prepared the company's bank reconciliation at the end of the year and found only two reconciling items: deposits in transit of $2,850 and outstanding checks of $3,500.She then made an adjusting entry to decrease the company's cash balance for the deposits in transit and increase the company's cash balance for the outstanding checks.Now the company's cash balance is exactly the same as the bank statement balance.As a result of the adjusting entry,the cash shown on Three Bears Company's year-end balance sheet will be ________.

(Multiple Choice)

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Question 107

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.When Ace first accepts the note,it should record interest receivable of ________.

(Multiple Choice)

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Question 108

Rusk,Inc.had the following balances at December 31,2012,before recording any adjustments: Rusk estimated that $3,000 of the receivables would be uncollectible.The financial statements for the year ended December 31,2012 will show:

(Multiple Choice)

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Question 109

Acme,Inc.accepted a promissory note from NadirCo,who promised to pay Acme $5,000 plus 6% interest at the end of four months.When Acme first accepts the note,it should record Interest receivable of ________.

(Multiple Choice)

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Question 110

Match each of the following steps in the bank reconciliation process to the situations below.Some of the steps may be used more than once.

Deposits in transit

Deduct from the balance on the company's books

Outstanding checks

Deduct from the balance on the bank statement

Team Shirts correctly deposited a check for $153.The bank recorded the check as $135.

Add to the balance on the bank statement

Correct Answer:

Verified

Deposits in transit

Outstanding checks

Team Shirts correctly deposited a check for $153.The bank recorded the check as $135.

NSF check

(Matching)

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Question 111

Sales for August for Team Shirts were $25,000.The average net accounts receivable was $1,500.The accounts receivable turnover for August was ________.

(Multiple Choice)

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(84)

Question 112

Fox Company accepts VISA from its customers.VISA charges Fox Company 6% of sales. Part A: Show the effect of the following events on the accounting equation,including both account titles and amounts: Part B: Why would Fox Company accept VISA?

(Essay)

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(72)

Question 113

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.The maker of the note is and the payee is _.

(Multiple Choice)

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Question 114

XYZ Company's accounting records on January 1 showed: On January 2,XYZ wrote off an account receivable of $1,000 from Bounder,Inc.As a result of this write-off,the net realizable value of XYZ's accounts receivable will ________.

(Multiple Choice)

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Question 115

What is the effect of the adjusting entry for bad debts expense on the Income statement?

(Multiple Choice)

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Question 116

X Company used the following items to complete its bank reconciliation for the month of October: ∙ Deposits in transit were $2,500. ∙ Outstanding checks totaled $1,100. ∙ Bank service charges were $10. ∙ The company correctly wrote a check for $192,but mistakenly recorded the check as $129 on its books.The bank cashed the check correctly for $192. ∙ A customer's check for $50 was returned by the bank,NSF. The $1,100 of outstanding checks should be ________.

(Multiple Choice)

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Question 117

Bad debts expense appears on the income statement.

(True/False)

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Question 118

Sailz,Inc.began business January 1,2011.Show the effect of the following 2011 events on the accounting equation: Write in the amount (even if $0)as of or for the Year Ended December 31,2011,AND the name of the financial statement where the line item is found. Part B: Continuing from Part A,now show the effect of the 2012 events on the accounting equation: Write in the amount (even if $0)as of or for the Year Ended December 31,2012,AND the name of the financial statement where the line item is found.

(Essay)

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Question 119

Net accounts receivable are ________.

(Multiple Choice)

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(81)

Question 120

Showing 101 - 120 of 195

The company has a policy of waiting at least a month before calling the bank about errors on the bank statement.This saves time because most errors correct themselves.This is an internal control ________.

The Multiplex Mart accepts VISA.During March,$140,000 in credit card sales were made.VISA charges 3% of sales as its service fee.Prepare the entry to record the credit card sales.Include the account titles and amounts.

Employees who sign checks should not record cash payments in the accounting records.

Quality Auto Parts had credit sales of $50,889.Average net accounts receivable were $566.Calculate the accounts receivable turnover for the period.

Put an X in the appropriate box to show how each of these items would appear on a company's bank reconciliation.Put an asterisk (*)next to the items for which the company must record an adjusting entry:

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.When Ace first accepts the note,it should record interest receivable of ________.

Rusk,Inc.had the following balances at December 31,2012,before recording any adjustments: Rusk estimated that $3,000 of the receivables would be uncollectible.The financial statements for the year ended December 31,2012 will show:

Acme,Inc.accepted a promissory note from NadirCo,who promised to pay Acme $5,000 plus 6% interest at the end of four months.When Acme first accepts the note,it should record Interest receivable of ________.

Sales for August for Team Shirts were $25,000.The average net accounts receivable was $1,500.The accounts receivable turnover for August was ________.

Fox Company accepts VISA from its customers.VISA charges Fox Company 6% of sales. Part A: Show the effect of the following events on the accounting equation,including both account titles and amounts: Part B: Why would Fox Company accept VISA?

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.The maker of the note is and the payee is _.

XYZ Company's accounting records on January 1 showed: On January 2,XYZ wrote off an account receivable of $1,000 from Bounder,Inc.As a result of this write-off,the net realizable value of XYZ's accounts receivable will ________.

What is the effect of the adjusting entry for bad debts expense on the Income statement?

Bad debts expense appears on the income statement.

Net accounts receivable are ________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 4: Payment for Goods and Services: Cash and Accounts Receivable

The company has a policy of waiting at least a month before calling the bank about errors on the bank statement.This saves time because most errors correct themselves.This is an internal control ________.

The Multiplex Mart accepts VISA.During March,$140,000 in credit card sales were made.VISA charges 3% of sales as its service fee.Prepare the entry to record the credit card sales.Include the account titles and amounts.

Employees who sign checks should not record cash payments in the accounting records.

Quality Auto Parts had credit sales of $50,889.Average net accounts receivable were $566.Calculate the accounts receivable turnover for the period.

Put an X in the appropriate box to show how each of these items would appear on a company's bank reconciliation.Put an asterisk (*)next to the items for which the company must record an adjusting entry:

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.When Ace first accepts the note,it should record interest receivable of ________.

Rusk,Inc.had the following balances at December 31,2012,before recording any adjustments: Rusk estimated that $3,000 of the receivables would be uncollectible.The financial statements for the year ended December 31,2012 will show:

Acme,Inc.accepted a promissory note from NadirCo,who promised to pay Acme $5,000 plus 6% interest at the end of four months.When Acme first accepts the note,it should record Interest receivable of ________.

Sales for August for Team Shirts were $25,000.The average net accounts receivable was $1,500.The accounts receivable turnover for August was ________.

Fox Company accepts VISA from its customers.VISA charges Fox Company 6% of sales. Part A: Show the effect of the following events on the accounting equation,including both account titles and amounts: Part B: Why would Fox Company accept VISA?

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.The maker of the note is ________ and the payee is _________.

XYZ Company's accounting records on January 1 showed: On January 2,XYZ wrote off an account receivable of $1,000 from Bounder,Inc.As a result of this write-off,the net realizable value of XYZ's accounts receivable will ________.

What is the effect of the adjusting entry for bad debts expense on the Income statement?

Bad debts expense appears on the income statement.

Net accounts receivable are ________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Ace Electronics accepted a promissory note from Fenstermaker,who promised to pay Ace $2,000 plus 6% interest at the end of six months.The maker of the note is and the payee is _.