Which of the following statements is true given the data below? $\begin{array}{|l|r|r|} \hline& \text { Company A } & \text { Company B } \\ \hline \text { Sales } & \$ 250,000 & \$ 400,000 \\ \hline \text { Ending Accounts Receivable } & \$ 55,000 & \$ 55,000\\ \hline \end{array}$

A) Both companies have the same degree of liquidity with regard to their accounts receivables B) Company A is likely to collect account receivables more quickly than Company B C) Company B is likely to collect account receivables more quickly than Company A D) Company A and Company B will likely collect account receivables at the same time E) It is impossible to estimate how much time it will take for these companies to collect their receivable based on the given information A) Both companies have the same degree of liquidity with regard to their accounts receivables B) Company A is likely to collect account receivables more quickly than Company B C) Company B is likely to collect account receivables more quickly than Company A D) Company A and Company B will likely collect account receivables at the same time E) It is impossible to estimate how much time it will take for these companies to collect their receivable based on the given information

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following: \[\begin{array} { | l | l | r | } \hline \text { Petty cash receipts } & \text { Postage } & \$ 43.50 \\ \hline & \text { Office supplies } & 51.85 \\ \hline & \text { Office equipment repair } & 49.00 \\ \hline{ \text { Cash } } && 4.25 \\ \hline \end{array}\] Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

\[\begin{array} { | l | l | l | r | r |

Exam 6: Reporting and Analyzing Cash and Internal Controls

Which of the following statements is true given the data below? Company A Company B Sales \ 250,000 \ 400,000 Ending Accounts Receivable \ 55,000 \ 55,000

(Multiple Choice)

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Question 81

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

(True/False)

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Question 82

On August 17,at the end of the day,the cash register's record shows $957,but the count of cash in the register is $965.Prepare the general journal entry to record the day's cash sales.

(Essay)

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Question 83

In reimbursing the petty cash fund:

(Multiple Choice)

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Question 84

A voucher system establishes procedures for verifying,approving and recording obligations for eventual cash disbursement.

(True/False)

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Question 85

The steps to reconcile the balance of the bank statement to the adjusted balance include adding outstanding checks,deposits and bank service charges.

(True/False)

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Question 86

A company plans to decrease a $200 petty cash fund to $75.The current balance in the account includes $45 in receipts and $165 in currency.The entry to reduce the fund will include a:

(Multiple Choice)

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Question 87

What is the purpose of the days' sales uncollected ratio?

(Essay)

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Question 88

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

(True/False)

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Question 89

A company had $12,000 in accounts receivable and $320,000 in net sales for the current period.Its days' sales uncollected is equal to 13.7 days.

(True/False)

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Question 90

Outstanding checks refer to checks that have been:

(Multiple Choice)

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Question 91

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

(Short Answer)

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Question 92

Checking accounts are also called demand deposits.

(True/False)

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Question 93

________________ includes currency,coins and amounts on deposit in checking accounts and many savings accounts.

(Short Answer)

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Question 94

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the ____________________.

(Short Answer)

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Question 95

An internal control system refers to the policies and procedures companies use to protect assets,ensure reliable accounting,promote efficient operations and urge adherence to company policies.

(True/False)

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Question 96

Discuss how the principles of internal controls apply to cash receipts.

(Essay)

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Question 97

A petty cash fund was originally established with a check for $150.In the petty cash fund on December 31 (the period-end),you find the following: Petty cash receipts Postage \ 43.50 Office supplies 51.85 Office equipment repair 49.00 Cash 4.25 Prepare the general journal entry to record the replenishment of the petty cash fund on December 31.

(Essay)

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Question 98

The _________________ account is used to record the effects of cash overages and shortages from errors in making change.

(Short Answer)

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Question 99

Electronic funds transfer (EFT)is the use of electronic communication transfer of cash from one party to another.

(True/False)

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Question 100

Showing 81 - 100 of 203

Which of the following statements is true given the data below? Company A Company B Sales \ 250,000 \ 400,000 Ending Accounts Receivable \ 55,000 \ 55,000

A voucher is an internal document or file used to accumulate information to control cash disbursements and to ensure that a transaction is properly recorded.

On August 17,at the end of the day,the cash register's record shows $957,but the count of cash in the register is $965.Prepare the general journal entry to record the day's cash sales.

In reimbursing the petty cash fund:

A voucher system establishes procedures for verifying,approving and recording obligations for eventual cash disbursement.

The steps to reconcile the balance of the bank statement to the adjusted balance include adding outstanding checks,deposits and bank service charges.

A company plans to decrease a $200 petty cash fund to $75.The current balance in the account includes $45 in receipts and $165 in currency.The entry to reduce the fund will include a:

What is the purpose of the days' sales uncollected ratio?

Good internal control dictates that a person who controls an asset should also maintain the accounting records for that asset.

A company had $12,000 in accounts receivable and $320,000 in net sales for the current period.Its days' sales uncollected is equal to 13.7 days.

Outstanding checks refer to checks that have been:

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

Checking accounts are also called demand deposits.

________________ includes currency,coins and amounts on deposit in checking accounts and many savings accounts.

The internal document that is used to notify the appropriate person that ordered goods have been received and to describe the quantities and condition of the goods is the ____________________.

An internal control system refers to the policies and procedures companies use to protect assets,ensure reliable accounting,promote efficient operations and urge adherence to company policies.

Discuss how the principles of internal controls apply to cash receipts.

The _________________ account is used to record the effects of cash overages and shortages from errors in making change.

Electronic funds transfer (EFT)is the use of electronic communication transfer of cash from one party to another.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

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