accounting
All of the following are examples of internal control procedures except using prenumbered documents reconciling the bank statement customer satisfaction surveys insistence that employees take vacati
customer satisfaction surveys
A company using a perpetual inventory system that returns goods previously purchased on credit would debit Accounts Payable and credit Inventory debit Sales and credit Accounts Payable debit Cash and credit Accounts Payable debit Accounts Payable and credit Purchases
debit Accounts Payable and credit Inventory
In preparing a bank reconciliation, outstanding checks are added to the balance per bank deducted from the balance per books added to the balance per books deducted from the balance per bank
deducted from the balance per bank
The primary difference between a periodic and perpetual inventory system is that a periodic system keeps a record showing the inventory on hand at all time. provides better control over inventories records the cost of the sale on the date the sale is made Correct Response determines the inventory on hand only at the end of the accounting period
determines the inventory on hand only at the end of the accounting period
Deposits in transit have been recorded on the company's books but not yet by the bank have been recorded by the bank but not yet by the company have not been recorded by the bank or the company are customers' checks that have not yet been received by the company
have been recorded on the company's books but not yet by the bank
Tony's Market recorded the following events involving a recent purchase of inventory: Received goods for $40,000, terms 2/10, n/30. Returned $800 of the shipment for credit. Paid $200 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $38,416 increased by $39,400 increased by $38,612 increased by $38,616
increased by $38,616
The principle of establishing responsibility does not include one person being responsible for one task authorization of transactions independent internal verification approval of transactions
independent internal verification
A consequence of separation of duties is that theft by employees becomes impossible. operations become extremely inefficient because of constant training of employees more employees will need to be bonded theft is still possible when several employees are involved
theft is still possible when several employees are involved
Manufactured inventory that has begun the production process but is not yet completed is work in process raw materials merchandise inventory finished goods
work in process
Alpha First Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 200 units 1,170 June 15 200 units 1,260 June 28 150 units 990 $4,200 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is $1,092 $1,131 $1,386 $1,368
$1,131
Charlene Cosmetics Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 200 units 1,170 June 15 200 units 1,260 June 28 150 units 990 $4,200 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is $1,229 $1,368 $1,323 $1,260
$1,260
Aber Company sells merchandise on account for $1,800 to Borth Company with credit terms of 2/10, n/30. Borth Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? 1,464 $1,476 $1,470 $1,350
$1,470
Higgins Company gathered the following reconciling information in preparing its October bank reconciliation: Cash balance per books, 10/31 $12,600 Deposits in transit 450 Notes receivable and interest collected by bank 2,550 Bank charge for check printing 60 Outstanding checks 6,000 NSF check 510 The adjusted cash balance per books on October 31 is $14,130 $12,030 $8,580 $14,580
$14,580
Financial information is presented below: Operating expenses $ 45,000 Sales returns and allowances 4,000 Sales discounts 6,000 Sales revenue 160,000 Cost of goods sold 90,000 The amount of net sales on the income statement would be 154,000 $150,000 $160,000 $156,000.
$150,000
Nilson Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $21,000 Deposits in transit 900 Notes receivable and interest collected by bank 5,100 Bank charge for check printing 120 Outstanding checks 12,000 NSF check 1,020 The adjusted cash balance per books on August 31 is $24,960 $24,060 $13,800 $14,760
$24,960
At December 31, 2014 Mohling Company's inventory records indicated a balance of $602,000. Upon further investigation it was determined that this amount included the following: $112,000 in inventory purchases made by Mohling shipped from the seller 12/27/14 terms FOB destination, but not due to be received until January 2nd $74,000 in goods sold by Mohling with terms FOB destination on December 27th. The goods are not expected to reach their destination until January 6th. $6,000 of goods received on consignment from Dollywood Company What is Mohling's correct ending inventory balance at December 31, 2014? $490,000 $596,000 $410,000 $484,000
$484,000
A credit sale of $700 is made on July 15, terms 2/10, net/30, on which a return of $50 is granted on July 18. What amount is received as payment in full on July 24? $700 $637 $650 $686
$637
At April 30, Mendoza Company has the following bank information: Cash balance per bank $7,200 Outstanding checks $560 Deposits in transit $1,100 Credit memo for interest $20 Bank service charge $40 What is Mendoza's adjusted cash balance on April 30? $7,720 $7,760 $6,660 $7,740
$7,740
James Company had checks outstanding totaling $21,600 on its June bank reconciliation. In July, James Company issued checks totaling $155,600. The July bank statement shows that $105,200 in checks cleared the bank in July. A check from one of James Company's customers in the amount of $1,200 was also returned marked "NSF." The amount of outstanding checks on James Company's July bank reconciliation should be $50,400 $72,000 $70,800 $28,800
$72,000
Conway Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Conway Company pays within the discount period? $9,000 $8,820 $8,100 $8,280
$8,820
Serene Stereos has the following inventory data: Nov. 1 Inventory 30 units @ $4.00 each 8 Purchase 120 units @ $4.30 each 17 Purchase 60 units @ $4.20 each 25 Purchase 90 units @ $4.40 each A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Cost of goods sold under FIFO is $438 $846 $421 $863
$846
Tidwell Company's goods in transit at December 31 include sales made (1) FOB destination (2) FOB shipping point and purchases made (3) FOB destination (4) FOB shipping point. Which items should be included in Tidwell's inventory at December 31? Sales made FOB shipping point and purchase made FOB destination (1) and (4) (1) and (3) (2) and (4)
(1) and (4)
Quark Inc. just began business and made the following four inventory purchases in June: June 1 150 units $ 825 June 10 200 units 1,120 June 15 200 units 1,140 June 28 150 units 885 $3,970 A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is $1,105 $1,100 $1,170 $1,180
1,170
Baker Bakery Company just began business and made the following four inventory purchases in June: June 1 150 units $ 780 June 10 200 units 1,170 June 15 200 units 1,260 June 28 150 units 990 $4,200 A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is $1,092 $1,131 $1,368 $1,386
1,368
Financial information is presented below: Operating expenses $ 36,000 Sales revenue 150,000 Cost of goods sold 105,000 Gross profit would be $114,000 $ 36,000 $ 45,000 $ 24,000
45,000
Bonkers Bananas has the following inventory data: July 1 Beginning inventory 20 units at $20 $ 400 7 Purchases 70 units at $21 1,470 22 Purchases 10 units at $22 220 $2,090 A physical count of merchandise inventory on July 30 reveals that there are 25 units on hand. Using the LIFO inventory method, the amount allocated to ending inventory for July is $550 $505 $535 $500
505
Many companies use just-in-time inventory methods. Which of the following is not an advantage of this method? It limits the risk of having obsolete items in inventory Companies may not have quantities to meet customer demand It lowers inventory levels and costs. Companies can respond to individual customer requests
Companies may not have quantities to meet customer demand
A NSF check should appear in which section of the bank reconciliation? Addition to the balance per books Deduction from the balance per bank. Addition to the balance per bank Deduction from the balance per books
Deduction from the balance per books
The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit Accounts Payable Purchase Returns and Allowances Sales Revenue Correct Response Inventory
Inventory
Which of the following is a true statement about inventory systems? Periodic inventory systems require more detailed inventory records Correct Response Perpetual inventory systems require more detailed inventory records A periodic system requires cost of goods sold be determined after each sale A perpetual system determines cost of goods sold only at the end of the accounting period
Perpetual inventory systems require more detailed inventory records Perpetual inventory systems require more detailed inventory records