Accounting t
D. is not required.
A bank reconciliation included an outstanding check of $850 for the payment of salaries. The journal entry to record this reconciling item: A. should debit Accounts Payable and credit Cash for $850. B. should debit Salaries Expense and credit Cash for $850. C. should debit Cash and credit Salaries Expense for $850. D. is not required.
B. debit Accounts Receivable and credit Cash for $2,100
A bank statement included a NSF check from customer Kim Fields for $2,100. The journal entry to record this reconciling item should: A. debit Cash and credit NSF for $2,100. B. debit Accounts Receivable and credit Cash for $2,100. C. debit Cash and credit Accounts Receivable for $2,100. D. debit NSF and credit Cash for $2,100.
B. debit Accounts Receivable and credit Cash for $2,100.
A bank statement included a NSF check from customer Kim Fields for $2,100. The journal entry to record this reconciling item should: A. debit Cash and credit NSF for $2,100. B. debit Accounts Receivable and credit Cash for $2,100. C. debit Cash and credit Accounts Receivable for $2,100. D. debit NSF and credit Cash for $2,100.
A. True
A limitation of the direct write-off method is that it violates the matching principle by not recording the bad debts expense in the same fiscal period as the related revenue. A. True B. False
A. proper segregation of duties
All of the following are examples of a weak control environment EXCEPT: A. proper segregation of duties. B. lax ethical practices. C. a domineering CEO. D. a weak or conflicted Board of Directors.
A. proper segregation of duties.
All of the following are examples of a weak control environment EXCEPT: A. proper segregation of duties. B. lax ethical practices. C. a domineering CEO. D. a weak or conflicted Board of Directors.
D. B and C
All of the following will appear on the bank statement EXCEPT for: A. checks paid and deposits made before the cutoff date on the bank statement. B. book errors. C. checks paid and deposits made after the cutoff date on the bank statement. D. B and C.
D. B and C.
All of the following will appear on the bank statement EXCEPT for: A. checks paid and deposits made before the cutoff date on the bank statement. B. book errors. C. checks paid and deposits made after the cutoff date on the bank statement. D. B and C.
A. deposits in transit.
All of the following will appear on the book side of the bank reconciliation EXCEPT for: A. deposits in transit. B. service charges. C. book errors. D. electronic funds transfers.
B. nonsufficient funds (NSF) check.
Another term for a "hot check" is: A. cleared checks. B. nonsufficient funds (NSF) check. C. electronic check. D. outstanding check.
Debit cash credit _______ revenue
Begin with the EFT collection. (JE)
(dr) cash (cr) notes receivable (cr) interest revenue
Collected the BeachBeach Club note at maturity. following satisfaction of its past-due account receivable.
dr cash cr interest revenue cr note receivable cr interest receivable
Collected the maturity value of the note.
C. deposits in transit.
Deposits that have been recorded on the company's books, but have not yet been recorded by the bank are: A. nonsufficient funds deposits. B. electronic funds deposits. C. deposits in transit. D. outstanding deposits.
DR bad debt expense CR allowance of bad debts
First journalize adjustment to record bad debts expense. (JE)
a
How is a lump-sum purchase accounted for? A. The total cost of the multiple assets purchased is divided among the assets according to their relative market values B. The total cost of the multiple assets purchased is divided among the assets according to their relative useful lives C. The total cost of the multiple assets purchased is allocated in full to the most expensive asset purchased D. None of the above
C. debit to Cash, credit to Note Receivable, and credit to Interest Revenue.
If a bank statement included a bank collection of a note receivable and the related interest revenue, the journal entry to record this item should include a: A. debit to Cash and a credit to Note Receivable. B. debit to Note Payable, credit to Cash and credit to Interest Revenue. C. debit to Cash, credit to Note Receivable, and credit to Interest Revenue. D. debit to Note Receivable and a credit to Cash
C. debit to Cash, credit to Note Receivable, and credit to Interest Revenue.
If a bank statement included a bank collection of a note receivable and the related interest revenue, the journal entry to record this item should include a: A. debit to Cash and a credit to Note Receivable. B. debit to Note Payable, credit to Cash and credit to Interest Revenue. C. debit to Cash, credit to Note Receivable, and credit to Interest Revenue. D. debit to Note Receivable and a credit to Cash.
C. $ 9$9 deduction from the balance per books
If a bookkeeper mistakenly records a disbursement as $ 67$67 instead of the correct amount of $ 76$76, the error should be shown on the bank reconciliation as a: A. $ 143$143 deduction from the balance per books. B. $ 9$9 addition to the balance per books. C. $ 9$9 deduction from the balance per books. D. $ 143$143 addition to the balance per books.
C. $ 9$9 deduction from the balance per books.
If a bookkeeper mistakenly records a disbursement as $ 67$67 instead of the correct amount of $ 76$76, the error should be shown on the bank reconciliation as a: A. $ 143$143 deduction from the balance per books. B. $ 9$9 addition to the balance per books. C. $ 9$9 deduction from the balance per books. D. $ 143$143 addition to the balance per books.
B. subtraction from the bank balance of $ 1 comma 350$1,350.
If the bank records a deposit of $ 150$150 as $ 1 comma 500$1,500, the error should be shown on a bank reconciliation as a: A. subtraction from the book balance of $ 1 comma 350$1,350. B. subtraction from the bank balance of $ 1 comma 350$1,350. C. subtraction from the bank balance of $ 1 comma 650$1,650. D. subtraction from the book balance of $ 1 comma 650$1,650.
B. subtraction from the bank balance of $ 1,350.
If the bank records a deposit of $ 150$150 as $ 1 comma 500$1,500, the error should be shown on a bank reconciliation as a: A. subtraction from the book balance of $ 1 comma 350$1,350. B. subtraction from the bank balance of $ 1 comma 350$1,350. Your answer is correct. C. subtraction from the bank balance of $ 1 comma 650$1,650. D. subtraction from the book balance of $ 1 comma 650$1,650.
C. subtracted from the book balance
In a bank reconciliation, a NSF check is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. subtracted from the bank balance.
C. subtracted from the book balance.
In a bank reconciliation, a NSF check is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. subtracted from the bank balance.
C. subtracted from the book balance.
In a bank reconciliation, a bank service charge for printing checks is: A. added to the bank balance. B. added to the book balance. C. subtracted from the book balance. D. subtracted from the bank balance.
C. bank collections of accounts receivable
In a bank reconciliation, items recorded by the bank, but not yet recorded by the company, include: A. deposits in transit. B. outstanding checks. C. bank collections of accounts receivable. D. both deposits in transit and outstanding checks.
C. bank collections of accounts receivable.
In a bank reconciliation, items recorded by the bank, but not yet recorded by the company, include: A. deposits in transit. B. outstanding checks. C. bank collections of accounts receivable. D. both deposits in transit and outstanding checks.
B. addition to the bank balance; deposit in transit
Johnny Company deposited $25,000 in its bank on the same day as, but after the bank prepared Johnny Company's bank statement. The deposit should appear on the bank reconciliation as a(n) ________ and is called a(n): A. subtraction from the bank balance; deposit in transit B. addition to the bank balance; deposit in transit C. subtraction from the bank balance; outstanding deposit D. addition to the bank balance; outstanding deposit
B. addition to the bank balance; deposit in transit
Johnny Company deposited $25,000 in its bank on the same day as, but after the bank prepared Johnny Company's bank statement. The deposit should appear on the bank reconciliation as a(n) ________ and is called a(n)______: A. subtraction from the bank balance; deposit in transit B. addition to the bank balance; deposit in transit C. subtraction from the bank balance; outstanding deposit D. addition to the bank balance; outstanding deposit
DR Insurance expense CR cash
Journalize the EFT payment. (JE)
Debit accounts receivable credit cash
Journalize the NSF check. (JE)
debit cash credit notes receivable
Journalize the collection of the note. (JE)
DR ______ expense CR cash
Journalize the entry to correct the error. (JE)
cash short and over
Journalize the replenishment of the fund uses a special account for the difference in balance and expenses
DR Bank charge CR cash
Journalize the service charge. (JE)
C. $ 7 comma 900$7,900
Marjorie Company's cash balance per the books at the end of the month was $ 7 comma 200$7,200. After comparing the company's records with the monthly bank statement, Marjorie's accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $ 30$30; and NSF check, $ 300$300. The bank collection of a note receivable was $ 1 comma 000$1,000 plus interest of $ 140$140. There also was an EFT payment of $ 110$110. What is the adjusted book balance at the end of the month? A. $ 7 comma 100$7,100 B. $ 7 comma 870$7,870 C. $ 7 comma 900$7,900 D. $ 8 comma 010
C. $7,900
Marjorie Company's cash balance per the books at the end of the month was $ 7 comma 200$7,200. After comparing the company's records with the monthly bank statement, Marjorie's accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $ 30$30; and NSF check, $ 300$300. The bank collection of a note receivable was $ 1 comma 000$1,000 plus interest of $ 140$140. There also was an EFT payment of $ 110$110. What is the adjusted book balance at the end of the month? A. $7,100 B. $7,870 C. $7,900 D. $ 8,010
D. $ 14 comma 454
New Store has the following information at August 31: times• Two deposits made on August 31 were not on the bank statement, totaling $ 5 comma 800$5,800. times• The bank collected an EFT payment on a note receivable for $2,750. Of this amount, $150 represented interest on the note. times• August 31 balance in Cash was $ 12 comma 687$12,687. times• The bookkeeper forgot to record check #1578 for $843 which was cashed by the bank on August 15th. times• The balance on the bank statement as of August 31 was $ 11 comma 000$11,000. times• A check printing fee of $40 was shown on the bank statement. NSF check $100. times• Checks #1572, 1606, and 1548, totaling $ 2 comma 346$2,346, were not shown on the bank statement, even though the company had sent the checks. What is the adjusted bank balance at August 31? A. $ 16 comma 141$16,141 B. $ 16 comma 660$16,660 C. $ 13 comma 610$13,610 D. $ 14 comma 454
D. $ 14,454
New Store has the following information at August 31: times• Two deposits made on August 31 were not on the bank statement, totaling $5,800. times• The bank collected an EFT payment on a note receivable for $2,750. Of this amount, $150 represented interest on the note. times• August 31 balance in Cash was $12,687. times• The bookkeeper forgot to record check #1578 for $843 which was cashed by the bank on August 15th. times• The balance on the bank statement as of August 31 was $11,000. times• A check printing fee of $40 was shown on the bank statement. NSF check $100. times• Checks #1572, 1606, and 1548, totaling $2,346, were not shown on the bank statement, even though the company had sent the checks. What is the adjusted bank balance at August 31? A. $16,141 B. $16,660 C. $13,610 D. $ 14,454
b
Recording depreciation for a plant asset conforms to which accounting principle/assumption? A. Time Period Assumption B. Matching Principle C. Full Disclosure Principle D. Revenue Recognition Principle
D. A and B
The Sarbanesminus−Oxley Act of 2002: A. requires public companies to issue an internal control report. B. requires an outside auditor to evaluate the soundness of a public company's internal controls. C. allows an accounting firm to both audit a public client and also provide certain consulting services for the same client. D. A and B
A. True
The allowance method for recording uncollectibles is allowed by Generally Accepted Accounting Principles. A. True B. False
D. addition of $ 630$630 to the balance per books.
The bookkeeper recorded a deposit of $ 700$700 as $ 70$70. On the bank reconciliation, this will be a(n): A. subtraction of $ 630$630 from the balance per bank. B. subtraction of $ 630$630 to the balance per books. C. addition of $ 630$630 to the balance per bank. D. addition of $ 630$630 to the balance per books.
B. False
The direct write-off method is mainly used by large public companies to account for uncollectible accounts. A. True B. False
A. $ 7 comma 865$7,865
The ending bank statement balance at November 30 is $ 7 comma 350$7,350. The bank statement shows a service charge of $ 85$85, electronic funds receipts of $500, and a NSF check for $350. Deposits in transit total $ 2 comma 250$2,250 and outstanding checks are $ 1 comma 735$1,735. The balance per books at November 30 is $ 7 comma 800$7,800. What is the adjusted bank balance at November 30? A. $ 7 comma 865$7,865 B. $ 7 comma 415$7,415 C. $ 7 comma 350$7,350 D. $ 8 comma 315
A. $7,865
The ending bank statement balance at November 30 is $ 7 comma 350$7,350. The bank statement shows a service charge of $ 85$85, electronic funds receipts of $500, and a NSF check for $350. Deposits in transit total $ 2 comma 250$2,250 and outstanding checks are $ 1 comma 735$1,735. The balance per books at November 30 is $ 7 comma 800$7,800. What is the adjusted bank balance at November 30? A. $7,865 B. $7,415 C. $7,350 D. $ 8,315
D. both EFT receipts and collection of a note receivable by the bank
When preparing a bank reconciliation, which of the following items should be added to the book balance? A. EFT receipts B. collection of note receivable by bank C. deposits in transit D. both EFT receipts and collection of a note receivable by the bank
A. deposits in transit are added to the bank balance
When preparing a bank reconciliation: A. deposits in transit are added to the bank balance. B. book errors are subtracted from the bank balance. C. service charges are subtracted from the bank balance. D. outstanding checks are subtracted from the book balance.
A. deposits in transit are added to the bank balance.
When preparing a bank reconciliation: A. deposits in transit are added to the bank balance. B. book errors are subtracted from the bank balance. C. service charges are subtracted from the bank balance. D. outstanding checks are subtracted from the book balance.
a c
Which costs are not included in the cost of purchasing land? (check all that apply) A. Cost of installing a sprinkler system Your answer is correct. B. Cost for surveying the land C. Cost of property taxes after acquisition Your answer is correct. D. Cost of removing an unwanted building from the land
D. risk assessment
Which is NOT an objective of an internal control system? A. compliance with legal requirements B. compliance with company policies C. safeguarding of assets D. risk assessment
B. Journal entries need to be made for all transactions on the book side to get the accounts upminus−tominus−date.
Which of the following is a CORRECT statement regarding the bank reconciliation? A. The bank reconciliation is part of the general ledger. B. Journal entries need to be made for all transactions on the book side to get the accounts upminus−tominus−date. C. Journal entries need to be made for all transactions on the bank side to get the accounts upminus−tominus−date. D. The bank reconciliation is part of the journal.
B. Journal entries need to be made for all transactions on the book side to get the accounts up−to−date.
Which of the following is a CORRECT statement regarding the bank reconciliation? A. The bank reconciliation is part of the general ledger. B. Journal entries need to be made for all transactions on the book side to get the accounts up−to−date. C. Journal entries need to be made for all transactions on the bank side to get the accounts up−to−date. D. The bank reconciliation is part of the journal.
D. bank errors
Which of the following items can be added to or subtracted from the bank balance when preparing the bank reconciliation? A. EFT payments by bank B. EFT receipts by bank C. book errors D. bank errors
bank
Which party has a note receivable
personal
Which party has a interest expense
personal
Which party has a note payable
dr allowance for bad debts cr accounts receivable
Wrote off the receivable associated with (Use the allowance method.)
D. Bad Debts Expense
______________ is the cost that arises when a business is unable to collect from a credit customer. A. Accounts Receivable Expense B. Credit Expense C. Write-Off Expense
dr cash cr accounts receivable
collections on account (JE)
bank
which party has a interest revenue
DR allowance for bad debts CR accounts receivable
Write-offs of uncollectible receivables (JE)
