accounting... yikes
Sunshine, inc. failed to adjust prepaid insurance for insurance that had partially expired. the original entry was recorded by debating the prepaid insurance
an overstatement of assets and an understatement of expenses
Golden Leaf Inc borrows $15,000 at 8% interest for 3 months on March, 1. If adjusting entries are prepared on March 30, how much will be credited to interest payable.
300
Golden Leaf Company will report its accounts receivables on the balance sheet at
present value
Brown Company bank reconciliation should be prepared
to explain any difference between the depositers balance per books with the balance per bank
Beginning accounts recievable was 200,000 and ending accounts recievable were 300,000. Assuming cash collections totalled 1,100,000, what were the credit sales?
1,200,000
SRC has the following items: cash on hand $1000, cash in checking account $3000, cash in a savings account $5000, postage stamps $50, and treasury bill..... cash on the balance sheet
19,000
On Jan. 15 Nifty Company sells merchandise on account to Martinez Associates for $3000 with terms 3/10, n/30. On Jan. 20, Martines returns merchandise the balnce due. What is the amount of cash received?
2,328
Golden Leaf company received its monthly bank statement, which showed an ending balance of 30,000. Adjustments on Golden Leaf's monthly bank reconcilliation check for 1000; a bank service charge of $60; proceeds of a customer's note collected by the bank of $8000. What was the ____________
34,940
Given the following information on activity in football, Inc's supplies asset account: Beginning Balance- 5000, Purchases during year- 6,400 Used during the year- 6000 The amount which should be shown on the year end balance sheet as supplies would be
5400
The Chiefs, recieved and accepted a $500, 60 day, 12 percent note ont Oct. 15 in payment of an account receivable. The cheifs should expect a check in payment of
560
An internal control system is imp. to SRC . because it
All of the above
If a company uses the allowance method to account for doubtful accounts, when will the company's Stockholders equity decrease?
At the end of the accounting period when an adjusting entry for bad debts is recorded
Brown makes 500 on credit card sales. The visa card company charges 5 percent of gross sales. Which of the following statements is true?
Brown will incur a $25 service charge expense on the sales.
Which one of the following is an accurate description of the Allowance for Doubtful Account
Contra Account
Cranberry's monthly bank statement shows a collection by the bank of a note in the amount of 500 and related interest of 30. The journal entry to record the collection will include a:
Credit to Note Receivable for 500
SRC purchased a three year insurance policy on March 1 2010 for $7,200. Assuming that SRC debited the prepaid insurance account in recorded the original transaction would have included
Credit to prepaid insurance for $200
Golden Leaf Company will classify cash, accounts receivable, and prepaid insurance on their balance sheet as
Current assets
Green Realty Company received a check for $30,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $30,000. Financial statements will be prepared on July 31. Green Realty should make the following adjusting entry on July 31:
Debt unearned rent revenue, $5000, credit rent revenue $5,000
If a friend who is taking an upper level finance course asks you the two methods of accounting for uncollectible accounts, your answer would be the
Direct write-off method and the allowance method
If a company uses the direct write off method of accounting for bad debt
It will record bad debt expense only when an account is determined to be uncollected
Which is the correct order of steps in the accounting cycle?
Journalize and post transactions, journalize and post adjusting entries, journalize and post closing entries
A flower shop makes a large sale. they sale and ship the flowers to a customer for $1000 on Nov. 30. The customer is sent a statement on Dec. 5 and........ applies the revenue recognition principle. When is the $1000 considered to be recognized
November 30
Assuming Rams Inc has a $1000 credit balance in Allowance for Doubtful Accounts, the journal entry to write off an uncollectible account receivable of 400 will.......
Reduce both current assets and net income
Internal controls are concerned with
Safeguarding assets
Which statement is correct?
The use of the cash-basis of accounting violates both the revenue recognition and expense recognition principles.
When an NSF check is returned by the bank, it should be shown on the company's books as:
a receivable
Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them
increases the potential for errors and fraud
Accured expenses are
incurred but not yet paid or recorded
When straw man inc closes their books for the year, the closing entry process consists of closing
out the retained earning account
The control principle related to not having the same person authorize and pay for goods is known as
separation of duties
The revenue recognition principle dictates that revenue should be recognized in the accounting records
when the performance obligation is satisfied
