ACCT 1-4

37. Dent Company's unadjusted bank balance at March 31, 2014 is $3,000. The bank reconciliation revealed outstanding checks amounting to $500 and deposits in transit of $300. Based on this information, Dent's true cash balance is:

2,800

35. Which of the following is not a procedure for the control of cash receipts?

Using prenumbered checks

38. The total equity of Timberlake Company at the beginning of 2013 amounted to $5,500. During 2013 the company reported net income of $1,800 and paid a $500 dividend. If retained earnings at the end of 2013 is $2,200, what was beginning common stock?

4,600

34. Osborn Company's unadjusted book balance at June 30, 2014 is $7,800. The company's bank statement reveals bank service charges of $45. Two credit memos are included in the bank statement: one for $900 which represents a collection of an account receivable that the bank made for Osborn and one for $10 which represents the amount of interest that Osborn had earned on its interest-bearing checking account in June. Based on this information, Osborn's true cash balance is:

8,665

32. Which of the following statements concerning internal controls is true?

A strong internal control system provides reasonable assurance that the objectives of a company will be accomplished.

36. Adkins Company experienced an accounting event that affected its financial statements as indicated below. Which of the following accounting events could have caused these effects on ABC's statements?

ASSETTS + EQUTIY + REV + NET INCOME +

40. An effective system of internal control is designed to detect the following except for: collusion

Collusion

33. What costs should be included in the Merchandise Inventory account of a merchandising firm?

all costs necessary to acquire inventory and prepare it for sale

39. To have a strong internal control system, a business must have good administrative controls. Administrative controls include:

assessing compliance with company policies.

31. An entry to record the purchase of inventory on account under the perpetual inventory method

increases total assets