ACC 201 exam 2
A company receiving a payment of $20,000 accounts receivable within 10 days with terms of 2/10, n/30, would record a sales discount of...
$720
Certified Electronics Operated five days per week with daily payroll $40,000. Employees are paid every Saturday for the work week just completed. (Monday through Friday). The last day of the month is a Wednesday, may 31. The correct adjusting entry at May 31 is?
120000
balance sheet accounts are also know for which of the following
Permanent Accounts
Expense should be matched against revenue.
TRUE
A credit memo appeared on the September bank statement. How should this amount be treated on the September bank reconciliation
add it to companies balance
Which of the followings not a cash equivalent?
anything over 90 days.
What happened to the accounting equation when the adjustment for depreciation expense for the accounting period is recorded?
assets decrease and stock holders equity decreases
which of the following is an example of a debit memo?
might result if the bank makes a prearranged deduction from the business's account to pay a bill, such as a utility bill.
On October 1st, 2019, a company paid $9000 rent in advance. the rent per month is $1000. assuming the companies accounting period ends on December 21,2019, What will be reported on the financial statements?
prepaid rent $6000 on balance sheet at December 31,2019
While preparing the April 30 bank reconciliation, the account identifies the following items: company balance according to the general ledger: 15000 Outstanding checks: 2500 bank service charge: 15 a customers NSF check returned by the bank: 100 What is the companies adjusted cash balance April 30th
14885
On June 30, a company had $1924 in its cash account according to its general ledger. this included a deposit of $174 that was in transit on June 29th. The June 30th bank statement contained the following information: Bank statement balance: $2178 Bank Service charge: $14 Collection of Notes receivable: $136 NSF Checks: $32 Assuming outstanding checks of $338, what is the company's adjusted cash balance at June 30th?
2014
A Treasurer preparing the October bank reconciliation identified the following terms: cash balance per company's records: 32,800 Deposit in Transit: 4300 outstanding checks:2200 Interest earned on the checking account: 100 NSF check from customer: 400 What is the companies adjusted balance at October 31st?
32500
On December 15th, the Accounts Recievable balance was $50,000 and the balance in the allowance for doubtful accounts was $5,000. That morning, a $1000 uncollected account was written off. the net realizable value of accounts receivable immediately after the write off is:
45,000
Accumulated Depreciation
A contra asset account representing the total depreciation taken to date.
what is distinguishing characteristic between accounts receivable and notes receivable
Account receivable does not have a formal note and are between 30-60 days with no interest Notes receivable refers to a legal document given by a borrower to a lender and are between 3-12 months and do have interest.
The account which records differences between amounts of cash deposited and amounts from the cash register tapes id called
Cash over and Short
Which one of the following is an example of a deferred revenue?
Cash received before services are performed unearned revenue
which of the following is the correct entry to establish a petty cash fund in the amount of $300?
Debit petty cash fund : 300 Credit Cash: 300
Cash collected and recorded by a company but not yet reflected in a bank statement are known as...
Deposit in Transit
Which of the following entries properly closes a temporary account
Income Summary: 400 Salaries Expense: 400
all of the following are true for a company that uses the allowance method of accounting for bad debts EXCEPT
It records bad debt expense each Time an account is determined to be uncollected
Failure to record accused interest expense would result in which of the following
Liabilities being understated over stated net income
What happens to the accounting equation when the adjustment is recorded to recognize earned revenue previously recorded as unearned revenue?
Liabilities decrease and stockholders equity increases
A check returned by the bank because the issuers cash account balance could not cover the check is called a(n)
NSF
strategic risk assessment is primarily concerned with?
Possible external threats to the companies success in accomplishing its objectives.
The only essential element of internal control from the following is
Procedures from proper authorizations and transactions
which one of the following adjustments decreases net income for the period?
Recognition of depreciation on plant assets.
What internal control activity is followed when inventory storage areas are secured with limited access
Safeguards over assets and records
Match incorporated recorded salary expense of $120,000 in 2019. However, additional salaries of 9,000 had been earned, but nut not yet paid or recorded at DEC 31, 2019. After the adjustments are recorded and posted Dec, 31 2019, the balance in the salarys expense and salaries payable accounts will be...
Salary expense: 129000 Salaries payable: 9000
While preparing a bank reconciliation which of the following items would be subtracted from the balance per the company records?
Services charges NSF
Any particular company had 2400 supplies on hand of January 1. During the year supplies with the cost of 4000 were purchased. at December 31 the actual supplies on hand amounted to 2000. after the adjustments are recorded and posted at December 31 what are the ending balances in the supplies and supplies expense accounts
Supplies: 2000 Supplies Expense: 4400
which of the following statements are true, In regarding the two allowance procedures used to estimate bad debts?
The percentage of accounts receivable approach takes into account the existing balance and the allowance for doubtful accounts
Which one of the following is an accurate description of the allowance for double Accounts.
a Contra asset account with a normal credit balance
Carithers Cleaning service recieved advance payments from customers during 2019 of $24000. at Dec, 31 2019. $5000 of the advance payments still had not been earned. after the adjustments are recorded and posted at Dec 31, 2019, the balances in the Unearned service Revenue and service revenue accounts will be?
Unearned Service revenue:$5000 Service Revenue: $19000
when should a shipping company recognize revenue from its delivery service?
When you perform a service you can record it
Contra assets
credit
which of the following items would be added to companies cash balance on a bank reconciliation.
interest earned on the bank account
The college store accepts MasterCard for payments of purchases made by students. the credit card drafts are deposited directly in a bank account. MasterCard charges 1.55% collection fee. credit cards drafts totaling 10,000 are deposited during august. recording the sales and deposits will result in an increase in...
service change expense for $155