Question
1. The store had cash sales on January 13, 2017 of $9,450.78, but as per cash count it shows cash is only $9,450.75. Which of
1. The store had cash sales on January 13, 2017 of $9,450.78, but as per cash count it shows cash is only $9,450.75. Which of the following account is included to record sales?
Select one:
a. Credit Cash Over and Short, $0.03
b. Credit Sales Revenue, $9,450.75
c. Debit Cash Over and Short, $0.03
d. Credit Cash, $9,450.78
2. True or False: The petty cash account is credited every time cash from the fund is used.
3. True or False: The petty cash account is credited every time cash from the fund is used.
4. What is the entry to record the setting up of a petty cash fund?
Select one:
a. Debit Petty Cash; Credit Petty Cash Expense
b. Debit Cash; Credit Petty Cash Expense
c. Debit Cash; Credit Petty Cash
d. Debit Petty Cash; Credit Cash
5. Which ledger account is used in preparing the bank reconciliation at the end of the period?
Select one:
a. Cash
b. Accounts receivable
c. Sales revenue
d. All of the available choices
6. Which of the following statements is true regarding the cash over and short account?
Select one:
a. A credit balance in a cash over or short account shall be considered a liability because the short-changed customer will demand return of this amount.
b. It is impossible to have cash shortage or overage if employees are paid with cash rather than by cheque.
c. If the cash over or short account has a debit balance at the end of the accounting period it must be debited to a miscellaneous expense account.
d. If there is a small cash shortage, the entry to account for daily cash sales would include a credit to the cash over or short account.
7. A convenient, secure, inexpensive and fast method of paying bills online from a customers bank account directly to a suppliers the bank account is known as:
Select one:
a. None of the available choice
b. Electronic Fund Transfer
c. Remote Deposit
d. Payment by Mail
8. Cash generally includes all of the following except:
Select one:
a. Currency
b. Cheques
c. Money orders
d. Accounts receivable
9. Which of the following is true about internal controls?
Select one:
a. Detective controls are as useful as preventive controls
b. Detective controls are better than preventive controls
c. There is only one kind of internal control
d. Preventive controls are better than detective controls
10. Upon preparing the bank reconciliation statement, an adjusting entry was made that debited cash and credited interest revenue. Therefore, the bank reconciliation must have included an item that was:
Select one:
a. Deducted from the cash balance per company books
b. Deducted from the bank statement
c. Added to the bank statement
d. Added to the cash balance per company books
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