The ending bank statement balance at November 30 is $7,150.
The bank statement shows a service charge of $85, electronic funds receipts of $700 and a NSF check for $150. Deposits in transit total $2,050 and outstanding checks are $1,835. The balance per books at November 30 is $6,900.
What is the adjusted book balance at November 30?
A.$7,365
B.$7,115
C.$8,965
D.$ 7615
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
Accounts Receivable $1,102,000
Allowance for Uncollectible Accounts (Credit) $37,000
Uncollectibleminus−Account
Expense $64,000
What is the net realizable value of the accounts receivable?
A.$1,102,000
B.$1,139,000
C.$1,166,000
D.$ 1 065000
Cash received from the issuance of bonds would be reported on a statement of cash flows under:
A.
investing activities.
B.
noncash activities.
C.
financing activities
D.
operating activities.
Fraudulent financial reporting:
A.
involves bribes and kickbacks.
B.
deceives investors into investing.
C.
involves stealing assets from the company.
D.
involves employee overstatement of expense reimbursement requests.
Answer
involves employee overstatement of expense reimbursement requests.
Linda Keller opened a consulting firm, Keller Consulting P.C. During its first month of operations, the following transactions were completed:
I. Linda invested $30,000 in the business, which in turn issued common stock to her.
II. The business purchased equipment on account for $65,000.
III. The business provided consulting services on account, $15,000.
IV. The business paid cash salaries to the receptionist, $2,000.
V. The business received cash from a customer as payment on account $6,000.
VI. The business borrowed $12,000 from the bank, issuing a note payable.
At the end of the month, total liabilities are:
A.65,000.
B.$12,000.
C.$77,000.
D.$80,000.
Answer
C.$77,000.
A statement of cash flows accomplishes all of the following EXCEPT:
A.
provides information about the cash receipts and cash payments during a period.
B.
lists revenues and expenses.
C.
predicts future cash flows.
D.
determines the ability of the company to pay dividends and interest.
Answer
B.
lists revenues and expenses.
Which of the following costs associated with a delivery van should NOT be capitalized?
A.
The van is modified so it can be used for multiple purposes in the business.
B.
The van's engine is overhauled, and this will extend the useful life by five years.
C.
The van is repainted after 4 years of use.
D.
All of the above items should be capitalized.
Answer
C.
The van is repainted after 4 years of use.
Monthly sales are $480,000. Warranty costs are estimated at 5% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to:
A.
Estimated Warranty Payable for $24,000.
B.Sales for $24,000.
C.
Warranty Expense for $24,000.
D.
Inventory for $24,000
Answer
Estimated Warranty Payable for $24,000.
An expense occurred in 2018, but it is not paid until 2019. Using accrual accounting, the expense should appear on:
A.
the 2018 income statement.
B.
the 2019 income statement.
C.
whichever income statement the business prefers.
D.
both the 2018 and 2019 income statements.
Answer
A.
the 2018 income statement.
Smith Corporation issues $2,200,000, 10−year, 6% bonds payable at a price of 96.
The journal entry to record the issuance will include a:
A.
credit to Bonds Payable for $2,112,000.
B.
credit to Discount on Bonds Payable for $88,000.
C.
debit to Cash of $2,200,000.
D.debit to Cash for $2,112,000.
Answer
D.debit to Cash for $2,112,000.
If a corporation issues 7,000 shares of $5 par value common stock for $88,000, the journal entry would include a credit to:
A.Common Stock for $53,000.
B.Paid−in Capital in Excess of —Common for $53,000.
C.Common Stock for $88,000.
D.Paid−in Capital in Excess of —Common for $88,000.
Answer
B.Paid−in Capital in Excess of —Common for $53,000.
Which is NOT an objective of an internal control system?
A.
risk assessment
B.
safeguarding of assets
C.
compliance with legal requirements
D.
compliance with company policies
Answer
risk assessment
The bank statement shows a service charge of $85, electronic funds receipts of $700 and a NSF check for $150. Deposits in transit total $2,050 and outstanding checks are $1,835. The balance per books at November 30 is $6,900.
What is the adjusted book balance at November 30?
A.$7,365
B.$7,115
C.$8,965
D.$ 7615
The following account balances were extracted from the accounting records of Thomas Corporation at the end of the year:
Accounts Receivable $1,102,000
Allowance for Uncollectible Accounts (Credit) $37,000
Uncollectibleminus−Account
Expense $64,000
What is the net realizable value of the accounts receivable?
A.$1,102,000
B.$1,139,000
C.$1,166,000
D.$ 1 065000
Cash received from the issuance of bonds would be reported on a statement of cash flows under:
A.
investing activities.
B.
noncash activities.
C.
financing activities
D.
operating activities.
Fraudulent financial reporting:
A.
involves bribes and kickbacks.
B.
deceives investors into investing.
C.
involves stealing assets from the company.
D.
involves employee overstatement of expense reimbursement requests.
Answer
involves employee overstatement of expense reimbursement requests.
Linda Keller opened a consulting firm, Keller Consulting P.C. During its first month of operations, the following transactions were completed:
I. Linda invested $30,000 in the business, which in turn issued common stock to her.
II. The business purchased equipment on account for $65,000.
III. The business provided consulting services on account, $15,000.
IV. The business paid cash salaries to the receptionist, $2,000.
V. The business received cash from a customer as payment on account $6,000.
VI. The business borrowed $12,000 from the bank, issuing a note payable.
At the end of the month, total liabilities are:
A.65,000.
B.$12,000.
C.$77,000.
D.$80,000.
Answer
C.$77,000.
A statement of cash flows accomplishes all of the following EXCEPT:
A.
provides information about the cash receipts and cash payments during a period.
B.
lists revenues and expenses.
C.
predicts future cash flows.
D.
determines the ability of the company to pay dividends and interest.
Answer
B.
lists revenues and expenses.
Which of the following costs associated with a delivery van should NOT be capitalized?
A.
The van is modified so it can be used for multiple purposes in the business.
B.
The van's engine is overhauled, and this will extend the useful life by five years.
C.
The van is repainted after 4 years of use.
D.
All of the above items should be capitalized.
Answer
C.
The van is repainted after 4 years of use.
Monthly sales are $480,000. Warranty costs are estimated at 5% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the month, the company should record a journal entry with a credit to:
A.
Estimated Warranty Payable for $24,000.
B.Sales for $24,000.
C.
Warranty Expense for $24,000.
D.
Inventory for $24,000
Answer
Estimated Warranty Payable for $24,000.
An expense occurred in 2018, but it is not paid until 2019. Using accrual accounting, the expense should appear on:
A.
the 2018 income statement.
B.
the 2019 income statement.
C.
whichever income statement the business prefers.
D.
both the 2018 and 2019 income statements.
Answer
A.
the 2018 income statement.
Smith Corporation issues $2,200,000, 10−year, 6% bonds payable at a price of 96.
The journal entry to record the issuance will include a:
A.
credit to Bonds Payable for $2,112,000.
B.
credit to Discount on Bonds Payable for $88,000.
C.
debit to Cash of $2,200,000.
D.debit to Cash for $2,112,000.
Answer
D.debit to Cash for $2,112,000.
If a corporation issues 7,000 shares of $5 par value common stock for $88,000, the journal entry would include a credit to:
A.Common Stock for $53,000.
B.Paid−in Capital in Excess of —Common for $53,000.
C.Common Stock for $88,000.
D.Paid−in Capital in Excess of —Common for $88,000.
Answer
B.Paid−in Capital in Excess of —Common for $53,000.
Which is NOT an objective of an internal control system?
A.
risk assessment
B.
safeguarding of assets
C.
compliance with legal requirements
D.
compliance with company policies
Answer
risk assessment
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