1. Which of the following items does not require a journal entry?

A. interest paid on chequing account

B. deposits in transit

C. collection by bank of note receivable

D. bank service charge

2. The journal entry to record an NSF cheque returned by the bank is:

A. debit Cash, credit Accounts Receivable

B. debit Accounts Payable, credit Cash

C. debit Accounts Receivable, credit Cash

D. debit Miscellaneous Expense, credit Cash

3. Which of the following is not an internal control procedure for cash receipts?

A. comparing actual cash to cash register tape totals

B. pricing merchandise at uneven amounts

C. paying bills by cheque

D. enabling customers to see amounts entered on cash receipts

4. A debit balance in Cash Short and over is reported on the income statement as:

A. Other Revenue C. General Expenses

B. Cost of Goods Sold D. Miscellaneous Expenses

5. Net Accounts Receivable is equal to:

A. Accounts Receivable - Allowance for Doubtful Accounts

B. Accounts Receivable + Allowance for Doubtful Accounts

C. Accounts Receivable Bad-Debt Expense

D. Accounts Receivable + Bad-Debt Expense

6. Accounts Receivable has a debit balance of $45,000 and the Allowance for Doubtful Accounts has a credit balance of $3,000. A specific account of $400 is written off. What is the amount of net receivables after the write-off?

A. $44,600 C. $42,000

B. $42,600 D. $41,600

7. Allowance for Doubtful Accounts is:

A. an expense account

B. a contra liability account

C. a contra asset account

D. a liability account

8. A 120-day note receivable reported on the balance sheet is classified as a:

A. current asset C. current liability B. long-term asset D. long-term liability