1

1. Effective cash control ideally requires the investment of otherwise idle cash so as to earn revenues.
2. True
3. False

2 points

Question 2

1. It is impossible to construct a foolproof system of internal control.
2. True
3. False

2 points

Question 3

1. Outstanding checks are checks that have cleared the bank but have not yet been returned to the company.
2. True
3. False

2 points

Question 4

1. Those responsible for safeguarding an asset should also be required to maintain the accounting records for that asset.
2. True
3. False

2 points

Question 5

1. One key element in cash control is the immediate recording of cash receipts.
2. True
3. False

2 points

Question 6

1. Sales rung on the cash register equaled $2,269.60. Cash in the drawer totaled $2,271.60. Which entry correctly records this day's sales?
2. A.Cash
3. 2,271.60
5. Sales
7. 2,271.60
9. B.Cash
10. 2,269.60
12. Sales
14. 2,269.60
16. C.Cash
17. 2,269.60
19. Cash Short and Over
20. 2.00
22. Sales
24. 2,271.60
26. D.Cash
27. 2,271.60
29. Cash Short and Over
31. 2.00
32. Sales
34. 2,269.60

2 points

Question 7

1. One of the easiest ways to help achieve internal control is to divide the cash receipts process among several persons.
2. True
3. False

2 points

Question 8

1. Making deposits of cash is not worth the effort.
2. True
3. False

2 points

Question 9

1. The functions of handling cash receipts and cash disbursements should be completely separated, if possible.
2. True
3. False

2 points

Question 10

1. Each disbursement from the petty cash fund should be supported by a petty cash voucher.
2. True
3. False

2 points

Question 11

1. Management tries to have "just the right amount" of cash available (within a certain range).
2. True
3. False

2 points

Question 12

1. Sales rung on the cash register equaled $980.50. Cash in the drawer totaled $975.00. What entry correctly records this day's sales?
2. A.Cash
3. 975.00
5. Cash Short and Over
6. 5.50
8. Sales
10. 980.50
12. B.Cash
13. 980.50
15. Cash Short and Over
17. 5.50
18. Sales
20. 975.00
22. C.Cash
23. 980.50
25. Sales
27. 980.50
29. D.Cash
30. 975.00
32. Sales
34. 975.00

2 points

Question 13

1. The use of purchase requisitions, purchase orders, supplier invoices, and receiving reports usually produces benefits greater than their costs.
2. True
3. False

2 points

Question 14

1. Under the straight-line method of depreciation, the book value at the end of the last year of an asset's estimated useful life should be equal to the estimated salvage value.
2. True
3. False

2 points

Question 15

1. The decline in service potential of a plant asset caused by inventions and technology is termed:
2. A.redundancy.
3. B.inadequacy.
4. C.deterioration.
5. D.obsolescence.

2 points

Question 16

1. Accumulated depreciation is represented by a reserve of cash intended for the replacement of the plant asset.
2. True
3. False

2 points

Question 17

1. Depreciation accounting could best be defined as:
2. A.a systematic cost allocation process.
3. B.the recognition of a cash expense.
4. C.the process of building up a fund of cash to replace plant assets.
5. D.All of the above answers are correct.

2 points

Question 18

1. The service potential of a machine could be measured in terms of:
2. A.hours of operation.
3. B.years of asset life.
4. C.units produced.
5. D.All of the above answers are correct.

2 points

Question 19

1. Under the double-declining balance method, the annual depreciation charge is computed by multiplying the book value of the asset at the beginning of the year by a fixed percentage.
2. True
3. False

2 points

Question 20

1. The service potential of a machine could be measured in terms of hours of operation.
2. True
3. False

2 points

Question 21

1. If depreciation is basically a function of the length of time that an asset is owned, it should be recorded using the:
2. A.units-of-output method.
3. B.double-declining-balance method.
4. C.sum-of-the-years'-digits method.
5. D.straight-line method.

2 points

Question 22

1. Companies do not have to disclose in their financial statements the method(s) of depreciation they are using.
2. True
3. False

2 points

Question 23

1. The difference between "tangible" assets and "intangible" assets is primarily one of size and value.
2. True
3. False

2 points

Question 24

1. The cost to demolish an unwanted structure on newly acquired land should be debited to the Land account.
2. True
3. False

2 points

Question 25

1. The basis of valuation or measurement of plant assets is called historical cost.
2. True
3. False

2 points

Question 26

1. In The Profit's Planet PopcornVideo clip,how much do the 2 carts at Disney generate?
2. $1.2 million
3. $ 5 million
4. $12 million
5. $500,000

2 points

Question 27

1. In The Profit's Planet PopcornVideo clip,what is Planet Popcorn's most valuable asset?
2. Cash
3. Popcorn
4. Employees
5. Carts

2 points

Question 28

1. In The Profit's Planet PopcornVideo clip,how much does Planet Popcorn make on a cart per day at Disney on average?
2. $2000
3. $1300
4. $685
5. $400

2 points

Question 29

1. In The Profit's Planet PopcornVideo clip,how much did Planet Popcorn make last year in net income per Marcus' accountant?
2. $319,000
3. $350,000
4. $2.5 million
5. $400,000

2 points

Question 30

1. In The Profit's Planet PopcornVideo clip,which business line at Planet Popcorn has the highest gross profit?
2. Popcorn
3. Crepes
4. Funnel Cakes
5. Soda