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Study Resources (Accounting)

65.Which of the following should not be considered cash by an accountant? A.money orders B.bank checking accounts C.postage stamps D.travelers' checks 66.The cash account in the company's ledger is a(n) A.asset with a debit balance B.asset with a credit balance C.liability with a debit balance D.liability with a credit balance 67.The notification accompanying a check that indicates the specific.
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21.A voucher is a written authorization to make a cash payment. 22.A payment system that uses computerized electronic impulses to effect a cash transaction is called electronic funds transfer (EFT). 23.A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid. 24.The bank often.
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136.The units of an item available for sale during the year were as follows: January 10 Inventory 27 units @ $90 February 27 Purchase 54 units @ $98 July 11 Purchase 63 units @ $106 November 13 Purchase 36 units @ $115 There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine.
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127.The following units of a particular item were available for sale during the year: Beginning inventory 150 units @ $755 Sale 120 units @ $925 First purchase 400 units @ $785 Sale 200 units @ $925 Second purchase 300 units @ $805 Sale 290 units @ $925 The firm uses the perpetual inventory system and there are 240 units of the item on.
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132.Beginning inventory, purchases and sales data for tennis rackets are as follows: Apr 3 Inventory 12 units @ $45 11 Purchase 13 units @ $47 14 Sale 18 units 21 Purchase 9 units @ $60 25 Sale 10 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO. 133.Beginning inventory, purchases and.
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123.Assume that three identical units of merchandise are purchased during October, as follows: Units Cost October 5 Purchase 1 $5 12 Purchase 1 7 28 Purchase 1 9 Total 3 $21 124.Assume that three identical units of merchandise are purchased during October, as follows: Units Cost October 5 Purchase 1 $ 5 12 Purchase 1 7 28 Purchase 1 9 Total 3 $21 125.The three identical units of Product Basic H are purchased during July, as shown below. Date Product Basic H Units Cost July 3 Purchase 1 $35 July 10 Purchase 1 $36 July 24 Purchase 1 $37 Total 3 $108 Average cost.
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41.A check outstanding for two consecutive months will appear only on the first month's bank reconciliation. 42.After a bank reconciliation is completed, adjusting entries are prepared for items in the balance per company's records as well as items in the balance per bank statement. 43.A business that requires all cash payments be.
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157.The units of an item available for sale during the year were as follows: Jan. 1 Inventory 20 units at $45 Mar. 4 Purchase 10 units at $50 June 7 Purchase 30 units at $58 Nov. 15 Purchase 15 units at $65 There are 25 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine.
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160.Beginning inventory, purchases and sales data for T-shirts are as follows: Apr 3 Inventory 24 units @ $10 11 Purchase 26 units @ $12 14 Sale 36 units 21 Purchase 18 units @ $15 25 Sale 20 units Assuming the business maintains a periodic inventory system, calculate the cost of merchandise sold and ending inventory under the following assumptions: a. FIFO b. LIFO c. Average cost (round cost of merchandise.
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162.Brutus Corporation, a newly formed corporation, has the following transactions during May, 2011, it’s first month of operation. May 1 Purchased 500 units @ $25.00 each May 4 Purchased 300 units @ $24.00 each May 6 Sold 400 units @ $38.00 each May 8 Purchased 700 units @ $23.00 each May.
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134.The following procedures were recently implemented at the Health Station, Inc. For each procedure, indicate whether the internal control over cash represents (1) a strength or (2) a weakness. If it is a weakness, please explain why. (a) All mail is opened by the mail clerk, who forwards all cash remittances.
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163.Why would a bank require a company to maintain a compensating balance? 164.Farm Store, Inc. reported the following data in its December 31, 2011 annual report. Cash and cash equivalents $1,050,000 Negative cash flows from operations (420,000) Required: (1) What is the company’s “cash burn” per month? (2) What is the company’s ratio of cash to monthly.
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160.Journalize the entries to record the following: Sept 1 Established a petty cash fund of $350 Sept 30 The amount of cash in the petty cash fund is now $130. The fund is replenished based on the following receipts: office supplies, $116; postage $100. Record any discrepancy in the cash.
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131.Distinguish preventive controls from detective controls and give examples of each as they relate to cash. 132.List the objectives of internal control and give an example of how each is implemented. Internal control provides reasonable assurance that (1) assets are safeguarded and used for business purposes (2) business information is accurate (3) employees comply with laws and.
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118.Safeguarding inventory from damage or theft is a primary objective for the control of inventory. If you were running a clothing store, name three specific controls you would implement to guard inventory from theft. 119.List three different security measures taken by stores to safeguard inventory. 120.Three identical units of Item Steele Plate.
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141.Using the lower of cost or market, what should the total inventory value be for the following items: Item Quantity Unit cost price Unit market price Total cost price Total market price A 200 $15.00 $14.50 $3,000 $2,900 B 100 $14.00 $15.00 $1,400 $1,500 C 50 $17.00 $17.50 $850 $ 875 142.The following information was extracted from the Stone Company’s records. Gross Sales $232,566 Gross Profit $87,990 Sales Discounts .
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75.The reconciliation of the cash register tape with the cash in the register is an example of A.other controls. B.independent internal verification. C.establishment of responsibility. D.segregation of duties. 76.Which of the following is not an internal control activity for cash? A.The number of persons who have access to cash should be limited. B.All cash receipts should be.
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55.Which one of the following below is not an element of internal control? A.risk assessment B.monitoring C.information and communication D.behavior analysis 56.Which one of the following below is not a factor that influences a business's control environment? A.management's philosophy and operating style B.organizational structure C.proofs and security measurers D.personnel policies 57.When a firm uses internal auditors, it is adhering to.
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136.The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Present entries to record the transactions for each of the two days of cash receipts from sales. (a) Actual cash in cash register, $4,512.36; cash receipts per cash register tally, $4,413.07. (b) Actual.
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139.Consider the cash account below. Additional Information: cash disbursements were 75% of collections. Cash ?? Beg. Balance 110,257.76 Collections ?? Disbursements 112,567.43 End Balance How much was the Beginning Balance of the Cash Account? 140.Describe the features of a voucher system and list typical supporting documents for a voucher. 141.The actual cash received during the week ended June 7 for cash sales.
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131.Complete the following table using the perpetual FIFO method of inventory flow. Inventory Valuation Perpetual FIFO Date Purchased Units Unit Cost Units Sold Unit Cost Inventory Units Balance Unit Costs Inventory Dollar Balance 2-Jul 600 12 Bal. 5-Jul 200 13 Bal. 7-Jul 300 Bal. 10-Jul 325 14 Bal. 12-Jul 300 150 Bal. 18-Jul 250 13 Bal. 22-Jul 50 205 Bal. 25-Jul 120 180 Bal. 28-Jul 330 15 Bal. 31-Jul 70 5 Ending Balance FIFO INVENTORY VALUATION: .
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142.Consider the following journal entry made by Jones Company. Upon investigation, what might you find happened to create this amount of Cash Over/Short account difference? Give three possible reasons for this difference. Cash 2,235.00 Cash Short and Over 100.00 Sales 2,135.00 143.List the principal advantage of Electronic Funds Transfers. 144.You are trying to explain debit.
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11.A customer's check received in settlement of an account receivable is considered cash. 12.Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash. 13.For strong internal control system over cash, it is important to have the duties related to.
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95.Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. This item would be included on the bank reconciliation as a(n) A.deduction from the balance per company's records B.addition to the balance per bank statement C.deduction from the balance per bank statement D.addition to the balance per.
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157.On April 2nd, Granger Sales decides to establish a $125.00 Petty Cash Account to relieve the burden on Accounting. (a) Journalize this event. (b) On April 10th, the petty cash fund has receipts for mail and postage of $43.50, contributions and donations of $29.50, meals and entertainment of $38.25 and $13.55.
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150.A business using the retail method of inventory costing determines that merchandise inventory at retail is $1,700,000. If the ratio of cost to retail price is 55%, what is the amount of inventory to be reported on the financial statements? $1,700,000 x 55% = $935,000 151.Based upon the following data estimate the.
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163.Basic inventory data for April 30 are presented below for a business that employs the lower of cost or market basis of inventory valuation. Unit Unit Total Cost Market Lower of Commodity Quantity Price Price Cost Market C or M A 40 $52 $ 55 _______ _______ _______ B 10 155 150 _______ _______ _______ C 20 82 85 _______ _______ _______ D 35 58 55 _______ _______ _______ (a) Complete the table. (b) Determine the amount of reduction in the inventory.
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98.Merchandise inventory at the end of the year was understated. Which of the following statements correctly states the effect of the error? A.net income is understated B.net income is overstated C.cost of merchandise sold is understated D.merchandise inventory reported on the balance sheet isoverstated 99.Merchandise inventory at the end of the year is overstated. Which.
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78.The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $30 First purchase 25 units at $32 Second purchase 30 units at $34 Third purchase 10 units at $35 The firm uses the periodic system and there are 20 units of the commodity on hand at the end of the.
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115.Thompson Company developed the following reconciling information in preparing its October bank reconciliation: Cash balance per bank, 10/31 $17,000 Note receivable collected by bank 4,800 Outstanding checks 6,500 Deposits-in-transit 3,000 Bank service charge 50 NSF check 2,300 Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company. A.$11,050 B.$19,450 C.$15,950 D.$11,150 116.During a bank reconciliation process, A.Outstanding checks and deposits in transit are.
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147.On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. Item Inventory Quantity Unit Cost Price Unit Market Price Gear X 100 $33 $29 Gear Y 75 27 28 148.The following data were taken from the annual reports of Jong.
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156.Beginning inventory, purchases and sales data for hammers are as follows: Mar 3 Inventory 12 units @ $25.00 11 Purchase 13 units @ $27.00 14 Sale 18 units 21 Purchase 9 units @ $30.00 25 Sale 10 units Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions: a. First-in, first-out Purchases Cost of.
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108.Which of the following measures the length of time it takes to acquire, sell and replace inventory? A.inventory turnover B.number of days’ sales in inventory C.retail method of inventory costing D.gross profit method of inventory costing 109.For the year ended December 31, 2011 Depot Max’s cost of merchandise sold was $54,350. Inventory at the beginning.
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154.Describe three inventory cost flow assumptions and how they impact the financial statements. 155.The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account: June 1 Balance 25 units at $60 6 Sale 20 units 8 Purchase 20 units at $61 16 Sale 10 units 20 Purchase 20 units at $62 23 Sale 25 units 30 Purchase 15 units at $63 Calculate the cost of the.
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134.Beginning inventory, purchases and sales data for widgets are as follows: Apr 3 Inventory 15 units @ $30 11 Purchase 12 units @ $27 14 Sale 18 units 21 Purchase 7 units @ $25 25 Sale 10 units Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using LIFO. 135.Beginning inventory, purchases and sales.
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145.The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 check as $30. 146.The following information is from Madison Corporation’s accounting records for May 20XX. Check # 3269 was returned as a double payment and voided. Checks that have not cleared.
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165.1. Explain the effect of the following on the financial statements: Goods held on consignment were included in the ending inventory count. Goods purchased FOB shipping point were in transit on the last day of the year. The goods were not counted as part of ending inventory. Goods sold FOB shipping point.
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138.The units of Manganese Plus available for sale during the year were as follows: Mar 1 Inventory 16 units @ $30 $ 480 June 16 Purchase 30 units @ $35 1,050 Nov 28 Purchase 45 units @ $39 1,755 91 units $3,285 There are 15 units of the product in the physical inventory at November 30. The periodic inventory system is used. Determine the inventory cost by (a).
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1.The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s. 2.Sarbanes-Oxley’s purpose is to improve financial reporting. 3.There are two internal control objectives and they are to ensure accurate financial reports, and ensure compliance with applicable laws. 4.Sarbanes-Oxley requires companies to.
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154.The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Balance per bank $14,355 Balance per company records 14,010 Bank service charges 80 Deposits in transit 4,100 NSF checks 775 Outstanding checks 5,300 Required: (1) What is the adjusted balance on the bank reconciliation? (2) Journalize any necessary entries for Build-A-Lot based on the bank reconciliation. 155.The bank statement for Gatlin Co..
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167.Based on the following information: compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days' sales in inventory for 2011. Use a 365-day year. (d) If an inventory turnover of 12 is average for the industry, how is this company doing? Item 12/31/10 Amount 12/31/11 Amount Cost of.
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143.Determine the total value of the merchandise using Net Realizable Value: Item Quantity Selling Price Commission Doll 10 $7 $2 Horse 5 9 3 144.During the taking of its physical inventory on December 31, 2011, Gentry Supplies Company incorrectly counted its inventory as $245,000 instead of the correct amount of $254,000. Indicate the affect of the misstatement on Gentry Supplies Company’s.
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