Question 1

Important elements of an internal control system for cash disbursements include each of the following except:

Accepted Answer

A) Only authorized personnel should sign checks. 
B) All expenditures should be authorized before a check is prepared. 
C) All disbursements,other than very small disbursements,should be made by check. 
D) The same person that prepares the check should also record it in the proper journal. 
A) Only authorized personnel should sign checks. 
B) All expenditures should be authorized before a check is prepared. 
C) All disbursements,other than very small disbursements,should be made by check. 
D) The same person that prepares the check should also record it in the proper journal.

Question 2

Accounting for the pledging of accounts receivable as collateral for a loan requires:

Accepted Answer

A) Reporting the receivables net of the borrowed amount. 
B) Removal of the pledged receivables from current assets and including them with noncurrent investments. 
C) Disclosure of the arrangement in notes to the financial statements. 
D) None of these answer choices are correct. 
A) Reporting the receivables net of the borrowed amount. 
B) Removal of the pledged receivables from current assets and including them with noncurrent investments. 
C) Disclosure of the arrangement in notes to the financial statements. 
D) None of these answer choices are correct.

Question 3

From a financial accounting perspective,the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following does not reduce the balance in accounts receivable?

Accepted Answer

A) Returns on credit sales. 
B) Collections from customers. 
C) Recognizing bad debts expense. 
D) Write-offs. 
A) Returns on credit sales. 
B) Collections from customers. 
C) Recognizing bad debts expense. 
D) Write-offs.

Question 5

What entry would Harvey's make on April 23,assuming the customer made the correct payment on that date?

Accepted Answer

The answer of What entry would Harvey's make on April...

Question 6

Alliance Software began 2016 with accounts receivable of $115,000.All sales are made on credit.Sales and cash collections from customers for the year were $780,000 and $700,000,respectively.Cost of goods sold for the year was $450,000.What was Alliance's receivables turnover ratio (rounded)for 2016?

Accepted Answer

A) 4.00. 
B) 5.03. 
C) 2.90. 
D) 6.78. 
A) 4.00. 
B) 5.03. 
C) 2.90. 
D) 6.78.

Question 7

What is the balance in the allowance for sales returns account at the end of 2016?

Accepted Answer

A) $32,000. 
B) $39,000. 
C) $43,000. 
D) $40,000. 
A) $32,000. 
B) $39,000. 
C) $43,000. 
D) $40,000.

Question 8

What accounts receivable balance would Dinty report in its first year-end balance sheet?

Accepted Answer

A) $196,000. 
B) $218,000. 
C) $230,000. 
D) None of the above is correct. 
A) $196,000. 
B) $218,000. 
C) $230,000. 
D) None of the above is correct.

Question 9

Cash is the most liquid of all assets but is not always reported under current assets.Explain this statement.

Accepted Answer

Depending on the circumstances,restricte

Question 10

Use the following to answer questions 
The following note disclosure is taken from the 2016 annual report to shareholders of Winchester International Corporation.
NOTE 5: ALLOWANCE FOR LOAN LOSSES
The allowance for loan loss is maintained at a level to absorb probable losses inherent in the loan portfolio.This allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off,and reduced by charge-offs on loans.
The following is a summary of the changes in the allowances for loan losses for three years:
   Winchester also reported (in thousands)in its comparative balance sheet that it held Loans receivable,net,of $6,869,911 and $6,819,209 at December 31,2016,and December 31,2015,respectively.
-What kind of account is the Allowance for Loan Losses in Winchester's financial statements?

Accepted Answer

The Allowance for Loan Losses

Question 11

The annual interest rate on Note A is closest to:

Accepted Answer

A) 9.14%. 
B) 8%. 
C) 9.74%. 
D) 9.44%. 
A) 9.14%. 
B) 8%. 
C) 9.74%. 
D) 9.44%.

Question 12

The O'Hara Group is owed $1,000,000 by Hilton Enterprises under an 8% note with three years remaining to maturity.The prior year of interest was unpaid.O'Hara agrees to restructure the note under terms that yield a present value of $880,000.The journal entry that O'Hara would make to record this transaction would include a loss on troubled debt restructuring of:

Accepted Answer

A) $0. 
B) $80,000. 
C) $200,000. 
D) $220,000. 
A) $0. 
B) $80,000. 
C) $200,000. 
D) $220,000.

Question 13

Use the following to answer questions 
The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co.
  
-If HP is using the balance sheet approach to determining bad debt expense,what percentage of year-end receivables did it use in 2013 and 2012,respectively?

Accepted Answer

2013:$332/$16,208 =

Question 14

Use the following to answer questions 
The following note disclosure is taken from the 2016 annual report to shareholders of Winchester International Corporation.
NOTE 5: ALLOWANCE FOR LOAN LOSSES
The allowance for loan loss is maintained at a level to absorb probable losses inherent in the loan portfolio.This allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off,and reduced by charge-offs on loans.
The following is a summary of the changes in the allowances for loan losses for three years:
   Winchester also reported (in thousands)in its comparative balance sheet that it held Loans receivable,net,of $6,869,911 and $6,819,209 at December 31,2016,and December 31,2015,respectively.
-For each posted entry in the Allowance account during 2016,indicate the remaining entry(ies)in other accounts.

Accepted Answer

Receivables from acquisitions

Question 15

A company's investment in receivables is affected by several related variables.Give an example of this interrelationship.

Accepted Answer

There are many such examples.For instanc

Question 16

COSO defines internal control as a process,affected by an entity's board of directors,management,and other personnel,designed to provide reasonable assurance regarding the achievement of objectives in:

Accepted Answer

A) Effectiveness and efficiency of operations. 
B) Reliability of financial advice. 
C) Compliance with local ordinances. 
D) All of these answer choices are correct. 
A) Effectiveness and efficiency of operations. 
B) Reliability of financial advice. 
C) Compliance with local ordinances. 
D) All of these answer choices are correct.

Question 17

Galaxy sells used videogames for cash and provides a one-week return right.Returns are material and reasonably predictable.Galaxy should:

Accepted Answer

A) Not record sales until the right to return has expired. 
B) Record a contra-receivable in the year of the sale. 
C) Recognize a refund liability associated with estimated returns. 
D) Credit sales in the period of the return. 
A) Not record sales until the right to return has expired. 
B) Record a contra-receivable in the year of the sale. 
C) Recognize a refund liability associated with estimated returns. 
D) Credit sales in the period of the return.

Question 18

Cash equivalents do not include:

Accepted Answer

A) Money market funds. 
B) High grade marketable equity securities. 
C) U.S.treasury bills. 
D) Commercial paper. 
A) Money market funds. 
B) High grade marketable equity securities. 
C) U.S.treasury bills. 
D) Commercial paper.

Question 19

What entry would Oswego make on June 10,assuming the customer made the correct payment on that date?

Accepted Answer

The answer of What entry would Oswego make on June...

Question 20

On December 31,2015,Central Freight reported an allowance for uncollectible accounts of $15,300.During 2016,Central wrote off $17,000 in accounts receivable.Included in the write-off was Roskoff Corp.'s account in the amount of $750.Roskoff subsequently paid this balance.At December 31,2016,an analysis of the accounts receivable aging schedule indicated the need for an allowance for uncollectible accounts of $14,900.
Required:
Prepare all implied journal entries relative to bad debt expense and the allowance for uncollectible accounts.

Accepted Answer

The answer of On December 31,2015,Central Freight reported an allowance...

Important elements of an internal control system for cash disbursements include each of the following except:

Accounting for the pledging of accounts receivable as collateral for a loan requires:

From a financial accounting perspective,the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets.

Which of the following does not reduce the balance in accounts receivable?

What entry would Harvey's make on April 23,assuming the customer made the correct payment on that date?

Alliance Software began 2016 with accounts receivable of $115,000.All sales are made on credit.Sales and cash collections from customers for the year were $780,000 and $700,000,respectively.Cost of goods sold for the year was $450,000.What was Alliance's receivables turnover ratio (rounded)for 2016?

What is the balance in the allowance for sales returns account at the end of 2016?

What accounts receivable balance would Dinty report in its first year-end balance sheet?

Cash is the most liquid of all assets but is not always reported under current assets.Explain this statement.

The annual interest rate on Note A is closest to:

Use the following to answer questions The following information is taken from the 2013 annual report to shareholders of Hewlett-Packard (HP)Co. -If HP is using the balance sheet approach to determining bad debt expense,what percentage of year-end receivables did it use in 2013 and 2012,respectively?

A company's investment in receivables is affected by several related variables.Give an example of this interrelationship.

COSO defines internal control as a process,affected by an entity's board of directors,management,and other personnel,designed to provide reasonable assurance regarding the achievement of objectives in:

Galaxy sells used videogames for cash and provides a one-week return right.Returns are material and reasonably predictable.Galaxy should:

Cash equivalents do not include:

What entry would Oswego make on June 10,assuming the customer made the correct payment on that date?

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 7: Cash and Receivables

Important elements of an internal control system for cash disbursements include each of the following except:

Accounting for the pledging of accounts receivable as collateral for a loan requires:

From a financial accounting perspective,the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets.

Which of the following does not reduce the balance in accounts receivable?

What entry would Harvey's make on April 23,assuming the customer made the correct payment on that date?

What is the balance in the allowance for sales returns account at the end of 2016?

What accounts receivable balance would Dinty report in its first year-end balance sheet?

Cash is the most liquid of all assets but is not always reported under current assets.Explain this statement.

The annual interest rate on Note A is closest to:

A company's investment in receivables is affected by several related variables.Give an example of this interrelationship.

COSO defines internal control as a process,affected by an entity's board of directors,management,and other personnel,designed to provide reasonable assurance regarding the achievement of objectives in:

Galaxy sells used videogames for cash and provides a one-week return right.Returns are material and reasonably predictable.Galaxy should:

Cash equivalents do not include:

What entry would Oswego make on June 10,assuming the customer made the correct payment on that date?

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters