Question 1

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

Accepted Answer

A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash 
A)  debit Accounts Payable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  debit Accounts Receivable; credit Cash

Question 2

EFT

Accepted Answer

A)  means Efficient Funds Transfer 
B)  can process certain cash transactions at less cost than by using the mail 
C)  makes it easier to document purchase and sale transactions 
D)  means Effective Funds Transfer 
A)  means Efficient Funds Transfer 
B)  can process certain cash transactions at less cost than by using the mail 
C)  makes it easier to document purchase and sale transactions 
D)  means Effective Funds Transfer

Question 3

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that check #613 for $155 and check #601 for $420 were both outstanding. Also, a $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected a $5,000 note receivable on August 1 that was issued March 1. Accrued interest is $250. Northern Regional Bank charged a $35 fee for the collection service. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked "NSF." The ending balance of the Roper cash account is $12,938.
​
(a) Prepare a bank/account reconciliation.
(b) Prepare any necessary journal entries for the reconciliation.
(b) If a balance sheet were prepared for Roper Electronics on August 31, what amount should be reported for cash?

Accepted Answer

(a) @#IMG-DLM&_TB2281_00 ​
(b) @#IMG-DLM&_TB2281_00 ​
(c) $1

Question 4

Match each item to a bank statement adjustment, a company books adjustment, or either.
-Outstanding checks

Accepted Answer

A) bank statement adjustment 
B) company books adjustment 
C) either 
A) bank statement adjustment 
B) company books adjustment 
C) either

Question 5

Selected financial statement data for two years ended December 31 for Carey Co. follow. Assets are reported at their year-end value.   $$\begin{array} { l r c } 
& \text { Year 2 } & \text { Year 1 } \
\text { Cash } & \$ 32,500 & \$ 30,100 \
\text { Short-term investments } & 9,400 & 10,200 \
\text { Operating expenses } & 72,800 & 70,400 \
\text { Depreciation expense } & 12,000 & 11,200
\end{array}$$  
What is the days' cash on hand for each year?

Accepted Answer

A)  Year 2: 251.5; Year 1: 248.5 
B)  Year 2: 210.1; Year 1: 208.9 
C)  Year 2: 258.1; Year 1: 265.1 
D)  Year 2: 215.6; Year 1: 222.9 
A)  Year 2: 251.5; Year 1: 248.5 
B)  Year 2: 210.1; Year 1: 208.9 
C)  Year 2: 258.1; Year 1: 265.1 
D)  Year 2: 215.6; Year 1: 222.9

Question 6

List and define each of the five elements of internal control.

Accepted Answer

The answer of List and define each of the five...

Question 7

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Accepted Answer

A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  error by the company in recording a check for $732 as $723 
A)  outstanding checks 
B)  deposits in transit 
C)  notes collected by the bank 
D)  error by the company in recording a check for $732 as $723

Question 8

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

Accepted Answer

A) True 
 B)False

Question 9

Using the following information, prepare a bank reconciliation for Candace Co. for May 31: (a) The bank statement balance is $\$ 2,936$.
(b) The cash account balance is $\$ 3,194$.
(c) Outstanding checks amounted to $\$ 465$.
(d) Deposits in transit are $\$ 655$.
(e) The bank service charge is $\$ 50$.
(f) A check for $\$ 97$ for supplies was recorded as $\$ 79$ in the ledger.

Accepted Answer

The answer of Using the following information, prepare a bank...

Question 10

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.  $$\begin{array} { | l | r | } 
\hline \text { Cash balance per books, } 9 / 30 & \$ 2,750 \
\hline \text { Deposits in transit } & 200 \
\hline \text { Notes receivable and interest collected by bank } & 630 \
\hline \text { Bank charge for check printing } & 50 \
\hline \text { Outstanding checks } & 1,250 \
\hline \text { NSF check } & 290 \
\hline
\end{array}$$

Accepted Answer

A)  $5,130 
B)  $3,690 
C)  $3,040 
D)  $1,590 
A)  $5,130 
B)  $3,690 
C)  $3,040 
D)  $1,590

Question 11

Gamma Company and Delta Company have compiled the following data as of the end of the current fiscal year:
​   ​
Depreciation (one of the operating expenses) for Gamma was $35,000, and for Delta was $65,000.
​
(1) Calculate days' cash on hand for Gamma Company and for Delta Company. (Round your answer to one decimal place.)
​
(2) Which company has the better liquidity position based on your calculation?

Accepted Answer

(1) Gamma Company's days' cash on hand:

Question 12

Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation: $$\begin{array} { | l | r | } 
\hline\text { Cash balance per bank, } 10 / 31 & \$ 17,000 \
\hline \text { Note receivable collected by bank } & 4,800 \
\hline \text { Outstanding checks } & 6,500 \
\hline \text { Deposits in transit } & 3,000 \
\hline \text { Bank service charge } & 50 \
\hline \text { NSF check } & 2,300 \
\hline
\end{array}$$ 
 Using the above information, determine the cash balance per books (before adjustments) for Thompson Corporation.

Accepted Answer

A)  $11,050 
B)  $19,450 
C)  $15,950 
D)  $11,150 
A)  $11,050 
B)  $19,450 
C)  $15,950 
D)  $11,150

Question 13

The effect of a credit memo on the company's books and the bank records is as follows:

Accepted Answer

A)  Increases an asset on the company's books and increases a liability on the bank's records. 
B)  Increases an asset on the company's books and increases an asset on the bank's records. 
C)  Decreases an asset on the company's books and decreases a liability on the bank's records. 
D)  Decreases an asset on the company's books and increases a liability on the bank's records. 
A)  Increases an asset on the company's books and increases a liability on the bank's records. 
B)  Increases an asset on the company's books and increases an asset on the bank's records. 
C)  Decreases an asset on the company's books and decreases a liability on the bank's records. 
D)  Decreases an asset on the company's books and increases a liability on the bank's records.

Question 14

Journal entries based on the bank reconciliation are required in the company's accounts for

Accepted Answer

A)  outstanding checks 
B)  deposits in transit 
C)  bank errors 
D)  book errors 
A)  outstanding checks 
B)  deposits in transit 
C)  bank errors 
D)  book errors

Question 15

The objectives of internal control are to

Accepted Answer

A)  control the internal organization of the accounting department personnel and equipment 
B)  provide reasonable assurance that assets are safeguarded and used for business purposes, business information is accurate, and laws and regulations are complied with 
C)  prevent fraud, and promote the social interest of the company 
D)  provide control over "internal-use only" reports and employee internal conduct 
A)  control the internal organization of the accounting department personnel and equipment 
B)  provide reasonable assurance that assets are safeguarded and used for business purposes, business information is accurate, and laws and regulations are complied with 
C)  prevent fraud, and promote the social interest of the company 
D)  provide control over "internal-use only" reports and employee internal conduct

Question 16

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following items that appeared on the bank reconciliation did not require a journal entry?

Accepted Answer

A)  bank service charges 
B)  deposits in transit 
C)  NSF checks 
D)  a check for $630, recorded in the check register for $360 
A)  bank service charges 
B)  deposits in transit 
C)  NSF checks 
D)  a check for $630, recorded in the check register for $360

Question 18

What entry is required in the company's accounts to record outstanding checks?

Accepted Answer

A)  debit Accounts Receivable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  no entry is required 
A)  debit Accounts Receivable; credit Cash 
B)  debit Cash; credit Accounts Receivable 
C)  debit Cash; credit Accounts Payable 
D)  no entry is required

Question 19

A voucher system is an example of an internal control procedure over cash payments.

Accepted Answer

A) True 
 B)False

Question 20

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accepted Answer

A) True 
 B)False

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

EFT

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks

List and define each of the five elements of internal control.

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

The effect of a credit memo on the company's books and the bank records is as follows:

Journal entries based on the bank reconciliation are required in the company's accounts for

The objectives of internal control are to

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Which of the following items that appeared on the bank reconciliation did not require a journal entry?

What entry is required in the company's accounts to record outstanding checks?

A voucher system is an example of an internal control procedure over cash payments.

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters

Exam 7: Internal Control and Cash

A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. What entry is required in the company's accounts?

EFT

Match each item to a bank statement adjustment, a company books adjustment, or either. -Outstanding checks

List and define each of the five elements of internal control.

Which of the following would be subtracted from the balance per books on a bank reconciliation?

Separating the responsibilities for purchasing, receiving, and paying for equipment is an example of the control procedure: separating operations, custody of assets, and accounting.

The effect of a credit memo on the company's books and the bank records is as follows:

Journal entries based on the bank reconciliation are required in the company's accounts for

The objectives of internal control are to

A check outstanding for two consecutive months will appear only on the first month's bank reconciliation.

Which of the following items that appeared on the bank reconciliation did not require a journal entry?

What entry is required in the company's accounts to record outstanding checks?

A voucher system is an example of an internal control procedure over cash payments.

When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.

Accounting and Business

Double-Entry Accounting

Adjustments: Accruals and Deferrals

The Accounting Cycle

Accounting for Retail Businesses

Inventories

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current, Installment Notes, and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, Stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Investments

Filters