1. AC Company Ltd received a bank statement with a balance of $5,350. Reconciling items included a bookkeeper error of $200 (a $300 cheque recorded as $500), two outstanding cheques totaling $720, a service charge of $15, a deposit in transit of $180, and interest revenue of $21. What is the adjusted bank balance? A) $4,810 B) $4,610 C) $5,016 D) $4,486 (2 Marks)

2. Walter Bs Ltd cash ledger shows an ending balance of $5,000. Reconciling items included a bookkeeper error of $200 (a $300 cheque recorded as $500), two outstanding cheques totaling $720, a service charge of $15, a deposit in transit of $180, and interest revenue of $21. What is the adjusted book balance? A) $5,206 B) $4,486 C) $5,194 D) $4,806 (2 Marks)

3. Which of the following would be the correct journal entry to record a NSF(dishonored) cheque sent back to the company by the bank? A) A debit to Accounts payable and a credit to Cash B) A debit to Accounts receivable and a credit to Cash C) A debit to Cash and a credit to Accounts receivable D) A debit to Miscellaneous expense and a credit to Cash (2 Marks)

4. The Allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the amount of Uncollectible account expense reported on the income statement? A) 3,275 B) $3,075 C) $2,875 D) $2,675 (2 Marks)

5. The Allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet? A) $3,275 B) $3,075 C) $2,675 D) $2,875 (2 Marks)

6. Which of the following are the two methods of accounting for uncollectible receivables? A) The direct write-off method and the liability method. B) The allowance method and the direct write-off method. C) The asset method and the sales method. D) The allowance method and the liability method. (2 Marks)

7. Which of the following sections from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet? A) The investing section B) The financing section C) The operating section D) The noncash investing and financing section (2 Marks)

8. Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets? A) The financing section B) The operating section C) The investing section D) The noncash investing and financing section (2 Marks)

9. Zoom Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: Additional information provided: Equipment costing $52,000 was purchased for cash. Equipment with a net asset value of $10,000 was sold for $14,000. Depreciation expense of $12,000 was recorded during the year. Based on the info presented which of the following is the correct net amount of Cash from investing activities? A) $30,000 negative B) $60,000 positive C) $52,000 negative D) $38,000 negative (2 Marks)

10. In creating a statement of cash flows using the indirect method, which of the following statements is TRUE about depreciation expense? A) It is added back as an adjustment to net income in the operating activities section. B) It is shown as a negative cash flow in the investing activities section. C) It is added back to purchases of plant assets under investing activities. D) It is shown as a negative cash flow under operating activities.