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

Current Assets

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

Debit-Accts Payable Credit- Cash

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

Debit: the expenses Credit: Cash

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?

Debits- Cash Credit- Accounts Payable

What is a DIT?

Deposit in transit Late deposit that didn't show up on the bank statement

What is Inventory Shrinkage?

Difference between general ledger and physical inv

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

Expense

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

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)

FIFO

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

FIFO

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

Merch inv

An example of a preventive Internal Control is?

Multiple signatures, cameras, bouncer, separation of duties

journal entries based on the bank reconciliation are required in the depositor's account for:

NSF check, bank chargers, recording errors, interest, notes rec

Why should a bank reconciliation be prepared periodically?

To catch errors

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

cash equivalent (treasury bills and papers)

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

debit- petty cash credit-cash