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Question;1. Cash from sales of merchandise will be;recorded in the;a. cash receipts journal.;b. sales;journal.;c. purchases;journal.;d. general;journal.;2. Which;one of the following columns in a cash receipts journal isnot posted in total to an account in;the general ledger?;a. Accounts;Receivable column;b. Cash;column;c. Sales;Discounts column;d. Other Accounts column;3. A;subsidiary ledger frees the general ledger from details of;a. individual;balances.;b. internal transactions.;c. The;control account;d. External;account;4. Postings;are made daily to the;a. Accounts;Receivable control account.;b. Accounts;Payable control account.;c. Control;accounts in the general ledger.;d. Accounts Receivable subsidiary;ledger.;5. Adjusting;entries are recorded;a. in the general journal.;b. in;the special journals.;c. only;on the worksheet.;d. only;in the general ledge;6. The;reference column of the accounts in the accounts payable subsidiary ledger;after posting may show;a. G, P;or S references.;b. only;CP references.;c. only;P references.;d. CP, P, or G references.;7. Richmond's;Wholesale uses a sales journal. An entry in this journal represents a;a. debit;to Sales Discounts, credit to Cash.;b. debit to Accounts Receivable, credit to;Sales Revenue.;c. debit;to Accounts Payable, credit to Sales Returns and Allowances.;d. debit;to Cash, credit to Sales Revenue.;8. Entries;in a sales journal;a. are made from sales invoices.;b. will;indicate the invoice number in the reference column of the sales journal.;c. will;occupy two lines of the sales journal.;d. indicate;either a cash debit or accounts receivable debit.;9. Principles;of an efficient and effective accounting information system include all of the;following except;a. cost;effectiveness.;b. useful;output.;c. flexibility.;d. all of these answer choices are;principles.;10. A student should recognize a need to study manual;accounting systems because;a. all;small companies only use manual accounting systems.;b. the;structure of electronic systems differs greatly from manual systems.;c. the software and hardware of;electronic systems vary greatly, which makes manual procedures more practical;to study.;d. companies;that use manual systems hire more accountants;11. Internal control is defined, in part, as a plan that;safeguards;a. liabilities.;b. capital;stock.;c. all;balance sheet accounts.;d. assets.;12. Using prenumbered checks and having an approved invoice for;each check is an example of;a. establishment;of responsibility.;b. segregation;of duties.;c. documentation procedures.;d. independent;internal verification.;13. Companies that are subject to, but fail to comply with, the;Foreign Corrupt Practices Act of 1977;a. may;do so legally by obtaining an exemption.;b. may;be forced to sell their foreign subsidiaries.;c. will;be automatically dissolved.;d. may be subject to fines and officer;imprisonment.;14. The principles of internal control include all of the;followingexcept;a. establishment;of responsibility.;b. combining of duties.;c. physical;mechanical, and electronic controls.;d. independent;internal verification.;15. When opening a bank checking account, a signature card;a. is;required only when dealing with an out-of-state bank.;b. indicates;to whom money is to be paid.;c. is;attached to all pre-printed checks.;d. indicates each person authorized to;sign checks on the account.;16. Trudy, Inc. had the following bank reconciliation at March;31, 2014;Balance per bank statement, 3/31/14 $37,200;Please show solution;Add: Deposit in;transit 6,300;43,500;Less: Outstanding;checks;8,600;Balance per books;3/31/14;$34,900;Data per bank for the month of;April 2014 follow;Deposits $46,700;Disbursements 49,700;All reconciling items at March 31;2014 cleared the bank in April. Outstanding checks at April 30, 2014 totaled;$6,000. There were no deposits in transit at April 30, 2014. What is the cash;balance per books at April 30, 2014?;a. $34,200;b. $38,500;c. $25,900;d. $31,900;17. Hoppmann Company wrote checks totaling $25,620 during;October and $27,975 during November. $24,360 of these checks cleared the bank;in October, and $27,330 cleared the bank in November. What was the amount of;outstanding checks on November 30? Please show solution;a. $2,355;b. $1,260;c. $1,905;d. $645;18. Carothers Company assembled the following information in;completing its March bank reconciliation: balance per bank $7,640, outstanding;checks $1,550, deposits in transit $2,500, NSF check $160, bank service charge;$50, cash balance per books $8,800. As a result of this reconciliation;Carothers will;a. reduce its cash account by $210.;b. reduce;its cash account by $950.;c. increase;its cash account by $110.;d. reduce;its cash account by $50.;19. In the month of November, Kinsey Company Inc. wrote checks;in the amount of $18,500. In December, checks in the amount of $25,316 were;written. In November, $16,936 of these checks were presented to the bank for;payment, and $21,766 were presented in December. What is the amount of;outstanding checks at the end of November?;a. $1,564;b. $6,816;c. $4,830;d. $5,114;20. If the month-end bank statement shows a balance of $72,000;outstanding checks are $54,000, a deposit of $15,000 was in transit at month;end, and a check for $3,000 was erroneously charged by the bank against the;account, the correct balance in the bank account at month end is;a. $114,000.;b. $72,000.;c. $33,000.;d. $36,000.


Paper#37465 | Written in 18-Jul-2015

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