Acct 210 Exam 2

checks returned by a bank because customers did not have sufficient funds in their account are called

NSF checks

what is not included in cash

a bank certificate of deposit for 1 year

if a company uses th allowance method to account for bad debts when will the company's owners' equity decrease

at the end of the accounting period when an adjusting entry for bad debts is recorded

what would not appear on a bank statement for a checking account

outstanding checks

when calculating depreciation companies should

add the cost of major repairs to the book value and then allocate the new account balance less salvage over the adjusted years of life

checks presented for payment and paid by the bank are known as

canceled checks

what best describes the allowance for doubtful acount

contra account

what would be added to the balance per bank statement in a bank reconciliation

deposit in transit

assets classified as property, plant, and equipment are reported at

each asset's original cost less depreciation since aquisition

recognizing nsf checks on books would

have no effect on total assets

which internal control procedure is followed when the work of one department acts as a check on the work of another

independent verifications

which of the following is considered one of the six most important categories of internal control procedures

proper authorizations

which internal control procedure is violated when the cashier at the checkout stand also records the daily receipts in the journal

segregation of duties