1) The cheques that have been paid by the bank on behalf of the depositor and included with the bank statement are called: A.NSF cheques B.outstanding cheques C.cancelled cheques D.cheques in transit

2)Salary Expense on the income statement was $264,780 for the year ended December 31, 2017. The Salary Payable account decreased $24,370 during the same period. The amount of cash payments to employees for the year ended December 31, 2017, is:

A. $289,150

B. $240,410

C. $264,780

D.indeterminable from the information given

3) Under the allowance method for uncollectible receivables, the entry to record bad debt expense has what effect on the financial statements?

A.Decreases owners' equity and increases liabilities.

B.Decreases assets and has no effect on net income.

C.Decreases net income and decreases assets.

D.Increases expenses and increases owners' equity. 4)Cash collected from customers can be computed by the following formula:

A.ending accounts receivable plus beginning accounts receivable minus sales

B.beginning accounts receivable minus ending accounts receivable minus sales

C.beginning accounts receivable minus ending accounts receivable plus sales

D.ending accounts receivable minus beginning accounts receivable plus sales