Aof Chapter 7-8

debit cash 90 credit accounts payable 90

A check issued in payment of a liability was written for $230 but recorded in the check register as $320. What is the entry to correct this entry?

Expense

A debit balance in the cash short and over at the end of the accounting period is reported as?

multiple signature cameras alarm system separation of duties

An example of a preventive Internal Control is?

cash equivalents Treasury bill short term investment by the gov. - pays interest commercial paper when company needs money they will get it from the bank- short loan 270 days or less

Highly liquid investments that are usually reported with cash on the balance sheet are called?

FIFO

If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is

Accs Rec debit cash credit

If you have an NSF check on your bank statement, What is the journal entry to record it?

NSF check bank charges recording errors interest rotes rec

Journal entries based on the bank reconciliation are required in the depositors account for:

current asset

Merchandise inventory is reported on the balance sheet in the section entitled:

petty cash-debit cash-credit

The debit recorded in the journal to establish the petty cash fund is to?

Recorded all the pieces of paper as expense (debit) cash (credit)

The debit recorded in the journal to reimburse the petty cash fund is to:

FIFO

The inventory costing method that is based on the assumption that costs should be charged against revenue in the order in which they were incurred is(Think milk in grocery store)

Merch Inv

Under a perpetual inventory system, all sales of merchandise are credited to the account entitled:

FIFO

Under which method of cost flows is the inventory assumed to be composed of the most recent costs?

difference in general ledger and what you physically have in your inventory

What is Inventory Shrinkage?

deposit in transit a deposit to late in the day to show up on your bank statement

What is a DIT?

so you can catch errors on your books or on the banks books

Why should a bank reconciliation be prepared periodically?