Reference no: EM132315442

Question

Please complete within one hour is possible - if not cancel questions

1) On October? 1, 2018,? Mandy's Electronic sold merchandise in exchange for a 4? month, $50,000 note?receivable, with? 3% interest. Interest revenue of? $500 is earned in 2018.

True

False

2) Public companies? _________.

A. are required by the Financial Accounting Standards Board to maintain a system of internal controls

B. must issue an internal control report which states that the outside auditor is responsible for the adequacy of internal controls

C. are audited by accounting firms that do not also provide certain consulting services to the public company

D. are overseen by the Public Company Accounting Oversight Board

3) The Allowance for Bad Debts has a credit balance of $8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the agingminus

-ofminus

- receivables? method, the? company's management estimates that uncollectible accounts will be $18,000.

What will be the amount of Bad Debts Expense reported on the income? statement?

A. $10,000

B. $ 26,000

C. $18,000

D. $ 8, 000

4) Companies receive cash either over the? counter, through the? mail, or by electronic funds transfer.

True

False

5) A cash equivalent is a highly liquid investment that can be converted into cash in one year or less.

True

False

6) The petty cash fund at Brookshire Company has a designated balance of $350. The fund currently holds $128 in cash and $231 in petty cash tickets. Based on this? information, which of the following statements is?correct?

A. The total of the cash on hand plus petty cash tickets equals the designated fund balance.

B. The petty cash fund custodian must locate the $9 discrepancy.

C. To replenish the petty cash? fund, the company must write a? check, payable to Petty? Cash, for $231.

D. A shortage of $9 exists.

7) A? company's Cash account shows an ending balance of $4,600. Reconciling items included a bookkeeper error of $105 ?(a $525 check recorded as $630?), two outstanding checks totaling $810?, a service charge of $ $20?, a deposit in transit of $270?, and interest revenue of $31. What is the adjusted book? balance?

A. $4,716

B. $4,060

C. $5,140

D. $ 4,484

8) Under the allowance? method, the entry to write off a receivable increases the amount of the Allowance for Bad Debts account.

True

False

9) The direct? write-off method for uncollectible accounts violates the matching principle.

True

False