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1. Which of the following bank reconciliation items should not

Question : 1. Which of the following bank reconciliation items should not : 2443

1. Which of the following bank reconciliation items should not be added to or subtracted from the bank statement balance to determine the reconciled cash balance?

Select one:

A. Outstanding checks

B. Deposits in the mail but not yet received by the bank

C. Bank service charges

D. None of the above

2. Assume the following unadjusted account balances at the end of the accounting period for Wyoming Hardware: Accounts Receivable, $80,000; Allowance for Doubtful Accounts, $1,600 (debit balance); Sales revenue, $900,000.

If Wyoming Hardware ages the accounts and determines that $4,000 of the receivables may be uncollectible, the adjusting entry should be

Select one:

A.Bad Debts Expense

2,400

Allowance for Doubtful Accounts

2,400

B.Bad Debts Expense

4,000

Allowance for Doubtful Accounts

4,000

C.Bad Debts Expense

5,600

Allowance for Doubtful Accounts

5,600

D.Bad Debts Expense

4,000

Accounts Receivable

4,000

3. On January 1, 2016, Roberto, Inc. acquired a new machine for $186,750. Its estimated useful life is nine years with an expected salvage value of $6,750.

Assuming straight-line depreciation, 2016 depreciation expense is:

Select one:

A. $20,000

B. $19,000

C. $20,750

D. $16,500

4. Which of the following is not a primary activity of effective cash management?

Select one:

A. Increase the rate at which accounts receivable are collected.

B. Cash payments to suppliers should be delayed.

C. Inventory levels should be kept high.

D. Excess cash should be invested in short-term investments to earn interest rates on the cash balances.

5. Sullivan Company received its February bank statement, which included a memo indicating that the check of Emma Company for $435 had been returned as “NSF.” Sullivan’s bank reconciliation should list this check as a(n):

Select one:

A. Addition to balance per bank statement

B. Addition to balance per general ledger

C. Deduction from balance per bank statement

D. Deduction from balance per general ledger

6. On January 1, 2016, Skyward Company purchased a copy machine. The machine costs $320,000, its estimated useful life is 8 years, and its expected salvage value is $20,000.

What is the depreciation expense for 2017 using double-declining-balance method?

Select one:

A. $35,000

B. $52,500

C. $80,000

D. $60,000

7.In establishing an effective internal control structure, management should:

Select one:

A. Establish a good control environment

B. Provide an effective accounting system

C. Integrate control procedures into the control environment and accounting system

D. All of the above

8. The purpose of depreciation accounting is to:

Select one:

A. Have a plant asset's book value equal its initial cost by the end of its useful life

B. Allocate a plant asset's cost, less its salvage value, to expense over the asset's useful life

C. Accumulate funds to replace a plant asset at the end of its useful life

D. Reflect changes in the current value of a plant asset over its useful life

9. Kate Company purchased a tractor at a cost of $120,000 on January 1, 2016. The tractor has an estimated salvage value of $20,000 and an estimated life of 8 years.

If Kate uses the straight-line method, what is the book value at January 1, 2020?

Select one:

A. $70,000

B. $50,000

C. $82,500

D. None of the above

10. Which of the following is not one of the three elements of the fraud triangle?

Select one:

A. Pressure

B. Rationalization

C. Opportunity

D. Embezzlement

Solution
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