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100
What is the name of the special cash fund used to make small payments that occur frequently is called a(n):
Petty Cash
100
What type of expense is depreciation of office equipment?
Administrative expense
100
What type of expense is depreciation of store equipment?
Sales expense
100
What type of expense is advertising?
Selling expense
100
What type of expense is office staff salaries?
Administrative expense
200
A computer store that can identify exactly the cost of each computer sold would likely use which inventory cost flow method
Average Cost
200
Winston Inc. has beginning inventory of $10,000, purchases of $25,000 cost of goods (merchandise) sold of $19,000. How much is Winston's ending inventory?
$16,000
200
Winston Inc. has beginning inventory of $1,000, purchases of $25,000 and ending inventory of $7,000. What is Winston’s cost of goods (merchandise) sold?
$19,000
200
What EFT means and name one benefit
Electronic Funds Transfer Benefits: less cost, enhance internal controls, reduce late payments from customers
200
Winston Inc. has beginning inventory of $10,000, purchases of $25,000 and ending inventory of $12,000. What is Winston's cost of goods (merchandise) sold?
$23,000
300
Separating the custody of assets from accounting for assets is a part of which element of internal control?
Control procedures
300
Money orders should be considered cash by an accountant TRUE OR FALSE
TRUE!
300
The Sarbanes-Oxley Act of 2002 requires companies and their independent accountants to report on the state of the economy and likelihood of fraud TRUE OR FALSE
FALSE! Report on the effectiveness of the company’s internal controls.
300
Internal controls are designed to promote higher profitability TRUE OR FALSE
FALSE! Internal controls are designed to safeguard assets, promote employee compliance with laws and regulations and promote accuracy of business informmation
300
What is the main purpose of the Sarbanes-Oxley Act of 2002 is to:
Restore public confidence and trust in the financial statements of publicly held companies.
400
The amount of deposits in transit is included on the bank statement as a(n): *Addition or deduction to the cash balance per bank or book
Addition to the cash balance per bank
400
In periods of rising prices, the inventory method that will result in the lowest profit is:
LIFO
400
When an account is written off under the allowance method: net accounts receivable decreases. TRUE OR FALSE
False! Net accounts receivable remains unchanged
400
In periods of rising prices, the inventory method that will result in the highest cost of goods sold is
LIFO
400
What is the effect of the purchase of $30,000 of merchandise on account? *Which accounts are affected (increase or decrease)
Increase in Merchandise Inventory, Increase in Accounts Payable
500
After the accounts are adjusted at the end of the fiscal year, Accounts Receivable has a balance of $800,000 and Allowance for Doubtful Accounts has a normal negative balance of $20,000. What is the net realizable value of the receivables?
$780,000
500
A company was not aware of a credit for interest from a short-term note collected by the bank on its behalf until they noted it on the bank statement. This item would be included on the bank reconciliation as a(n): *addition or deduction to the cash balance per book or bank
Addition to the cash balance per book
500
Allowance for Doubtful Accounts has an unadjusted normal negative balance of $1000 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $950,000, the amount of the adjustment to record the provision for doubtful accounts is:
$8,500
500
Allowance for Doubtful Accounts has a normal negative balance of $1,000 at the end of the year, but an analysis of the aging of customers' accounts indicates the allowance should be $15,000. What is the effect of the adjustment on the accounting equation? Bad debt expense, A/R, Retained Earnings?
Record Bad debt expense $14,000, Reduce A/R and Retained Earnings by the same amount
500
A 60-day, 5% note for $15,000 dated May 21 is received from a customer on account. The maturity value of the note is (assume 360 days in a year):
$15,125