Question 1

Deposits made and recorded by the depositor but not yet recorded on the bank statement are called ________.

Accepted Answer

The answer of Deposits made and recorded by the depositor...

Question 2

The following information is available for the Victor Company for its March 31 bank reconciliation:
From the March 31 bank statement:
     NSF: A check from a customer,Booker Co.in payment of their account.
IN: Interest earned on the account.
From the Victor Company's accounting records:
       1.Based on the above information,prepare a bank reconciliation for the Victor Company.
2.Prepare the necessary general journal entries to adjust cash to the reconciled balance.

Accepted Answer

The answer of The following information is available for the...

Question 3

The following information is available for the Savvy Company for the month of June.
a.On June 30,after all transactions have been recorded,the balance in the company's Cash account has a balance of $17,202.
b.The company's bank statement shows a balance on June 30 of $19,279.
c.Outstanding checks at June 30 total $2,984.
d.A credit memo included with the bank statement indicates that the bank collected $770 on a noninterest-bearing note receivable for Savvy.
e.A debit memo included with the bank statement shows a $67 NSF check from a customer,J.Maroon.
f.A deposit placed in the bank's night depository on June 30 totaling $1,675 did not appear on the bank statement.
g.Comparing the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450,but was recorded in the accounting records as $2,540.
h.Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges.It has not been recorded on the company's books.
1.Prepare the June bank reconciliation for the Savvy Company.
2.Prepare the general journal entries to bring the company's book balance of cash into conformity with the reconciled balance as of June 30.

Accepted Answer

The answer of The following information is available for the...

Question 4

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals: (Use 365 days a year.)

Accepted Answer

A) 8.0 days. 
B) 58.9 days. 
C) 45.8 days. 
D) 7.4 days. 
E) 45.2 days. 
A) 8.0 days. 
B) 58.9 days. 
C) 45.8 days. 
D) 7.4 days. 
E) 45.2 days.

Question 5

Describe a petty cash account and its purpose.

Accepted Answer

The petty cash account is established to

Question 6

On June 1,a company established a $75 petty cash fund.On June 27,the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage,$19.50; office supplies,$36.25; and miscellaneous expense $14.00.Give the general journal entry to reimburse the fund on June 27.

Accepted Answer

The answer of On June 1,a company established a $75...

Question 7

The payee is the person who signs a check,authorizing its payment.

Accepted Answer

A) True 
 B)False

Question 8

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

Accepted Answer

A) Internal audit. 
B) Bank reconciliation. 
C) Bank audit. 
D) Trial reconciliation. 
E) Analysis of debits and credits. 
A) Internal audit. 
B) Bank reconciliation. 
C) Bank audit. 
D) Trial reconciliation. 
E) Analysis of debits and credits.

Question 9

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

Accepted Answer

A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval. 
A) Purchase requisition. 
B) Purchase order. 
C) Invoice. 
D) Receiving report. 
E) Invoice approval.

Question 10

The number of days' sales uncollected is calculated by:

Accepted Answer

A) Dividing accounts receivable by net sales. 
B) Dividing accounts receivable by net sales and multiplying by 365. 
C) Dividing net sales by accounts receivable. 
D) Dividing net sales by accounts receivable and multiplying by 365. 
E) Multiplying net sales by accounts receivable and dividing by 365. 
A) Dividing accounts receivable by net sales. 
B) Dividing accounts receivable by net sales and multiplying by 365. 
C) Dividing net sales by accounts receivable. 
D) Dividing net sales by accounts receivable and multiplying by 365. 
E) Multiplying net sales by accounts receivable and dividing by 365.

Question 11

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are considered effective cash management principles except:

Accepted Answer

A) Encouraging collection of receivables by offering discounts for early payments. 
B) Keeping only necessary levels of assets. 
C) Planning expenditures. 
D) Retaining excess cash for unexpected expenditures. 
E) Delaying payment of liabilities until the last possible day. 
A) Encouraging collection of receivables by offering discounts for early payments. 
B) Keeping only necessary levels of assets. 
C) Planning expenditures. 
D) Retaining excess cash for unexpected expenditures. 
E) Delaying payment of liabilities until the last possible day.

Question 13

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30,in preparing the September 30 bank reconciliation,the company should:

Accepted Answer

A) Deduct the deposit from the bank statement balance. 
B) Send the bank a debit memorandum. 
C) Deduct the deposit from the September 30 book balance and add it to the October 1 book balance. 
D) Add the deposit to the book balance of cash. 
E) Add the deposit to the bank statement balance. 
A) Deduct the deposit from the bank statement balance. 
B) Send the bank a debit memorandum. 
C) Deduct the deposit from the September 30 book balance and add it to the October 1 book balance. 
D) Add the deposit to the book balance of cash. 
E) Add the deposit to the bank statement balance.

Question 14

The Petty Cash account is a separate bank account used for small amounts.

Accepted Answer

A) True 
 B)False

Question 15

A seller (or provider)of goods or services to a business organization is known as a:

Accepted Answer

A) Vendor. 
B) Payee. 
C) Vendee. 
D) Creditor. 
E) Debtor. 
A) Vendor. 
B) Payee. 
C) Vendee. 
D) Creditor. 
E) Debtor.

Question 16

The following information is available for the Topper Company for the month of July.
a.On July 31,after all transactions have been recorded,the balance in the company's Cash account has a balance of $15,244.
b.The company's bank statement shows a balance on July of $16,450.
c.Outstanding checks at July total $2,063.
d.A credit memo included with the bank statement indicates that the bank collected $570 on a note receivable for Topper.The $570 includes $550 principle and $20 interest.
e.A debit memo included with the bank statement shows a $107 NSF check from a customer,P.Flank.
f.A deposit placed in the bank's night depository on July 31 totaling $1,275 did not appear on the bank statement.
h.Included with the bank statement was a debit memorandum in the amount of $45 for check printing charges that have not been recorded on the company's books.
Prepare the July bank reconciliation for the Topper Company.

Accepted Answer

The answer of The following information is available for the...

Question 17

A ________ is an internal document (or file)that is used to accumulate information to control cash disbursements.

Accepted Answer

The answer of A ________ is an internal document (or...

Question 18

The following account balances are taken from Everest Events at December 31.
   Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

Accepted Answer

Days' Sales Uncollected Ratio = Ending A

Question 19

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Accepted Answer

A) Debit Cash Over and Short for $25; credit Petty Cash $25. 
B) Debit Cash $25; credit Petty Cash $25. 
C) Debit Miscellaneous Expenses $25; credit Cash $25. 
D) Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200. 
E) Debit Petty Cash $25; credit Cash $25. 
A) Debit Cash Over and Short for $25; credit Petty Cash $25. 
B) Debit Cash $25; credit Petty Cash $25. 
C) Debit Miscellaneous Expenses $25; credit Cash $25. 
D) Debit Petty Cash for $175; debit Cash Over and Short $25; credit Cash $200. 
E) Debit Petty Cash $25; credit Cash $25.

Question 20

Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Accepted Answer

A) A debit to Cash for $378. 
B) A debit to Cash Over and Short for $5. 
C) A debit to Petty Cash for $383. 
D) A credit to Cash for $383. 
E) A credit to Cash Over and Short for $5. 
A) A debit to Cash for $378. 
B) A debit to Cash Over and Short for $5. 
C) A debit to Petty Cash for $383. 
D) A credit to Cash for $383. 
E) A credit to Cash Over and Short for $5.

Deposits made and recorded by the depositor but not yet recorded on the bank statement are called ________.

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals: (Use 365 days a year.)

Describe a petty cash account and its purpose.

On June 1,a company established a $75 petty cash fund.On June 27,the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage,$19.50; office supplies,$36.25; and miscellaneous expense $14.00.Give the general journal entry to reimburse the fund on June 27.

The payee is the person who signs a check,authorizing its payment.

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

The number of days' sales uncollected is calculated by:

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

All of the following are considered effective cash management principles except:

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30,in preparing the September 30 bank reconciliation,the company should:

The Petty Cash account is a separate bank account used for small amounts.

A seller (or provider)of goods or services to a business organization is known as a:

A ________ is an internal document (or file)that is used to accumulate information to control cash disbursements.

The following account balances are taken from Everest Events at December 31. Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 6: Reporting and Analyzing Cash,fraud,and Internal Control

Deposits made and recorded by the depositor but not yet recorded on the bank statement are called ________.

A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period.Its days' sales uncollected equals: (Use 365 days a year.)

Describe a petty cash account and its purpose.

On June 1,a company established a $75 petty cash fund.On June 27,the petty cash fund contains $5.25 in cash and the following paid petty cash receipts: postage,$19.50; office supplies,$36.25; and miscellaneous expense $14.00.Give the general journal entry to reimburse the fund on June 27.

The payee is the person who signs a check,authorizing its payment.

An analysis that explains differences between the checking account balance according to the depositor's records and the balance reported on the bank statement is a(n):

The itemized statement of goods prepared by a vendor listing the customer's name,items sold,sales prices,and terms of the sale is called the:

The number of days' sales uncollected is calculated by:

Outstanding checks are checks the bank has paid and deducted from the customer's account during the month.

All of the following are considered effective cash management principles except:

If a company made a bank deposit on September 30 that did not appear on the bank statement dated September 30,in preparing the September 30 bank reconciliation,the company should:

The Petty Cash account is a separate bank account used for small amounts.

A seller (or provider)of goods or services to a business organization is known as a:

A ________ is an internal document (or file)that is used to accumulate information to control cash disbursements.

The following account balances are taken from Everest Events at December 31. Calculate the number of days' sales uncollected for both years.According to this analysis,is the company's collection of receivables improving? Explain.

A company wants to decrease its $200 petty cash fund to $175.The entry to reduce the fund is:

Assume that the custodian of a $450 petty cash fund has $62 in coins and currency plus $383 in receipts at the end of the month.The entry to replenish the petty cash fund will include:

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters