14 Mir D Question 8 2 pts When preparing a bank reconciliation, a debit memorandum for $400 was on Smythe Co.'s bank statment for a NSF check that was received from a customer. The check had been included in an earlier deposit when it was received from the customer. The NSF check had not been recorded previously by Smythe Co. Which of the following statement correctly details what should be done with this $400 NSF check when preparing the reconciliation? Deduct $400 for the NSF check from Smythe Co's balance Add $400 for the NSF check to the bank balance Add $400 for the NSF check to Smythe Co.'s balance Deduct $400 for the NSF check to the bank balance When a bank reconciliation is prepared, what two amounts must equal in order to indicate that the reconciliation is in balance?" O Bank statement and Checkbook balances Outstanding checks and outstanding deposits Debit and credit memorandums Adjusted balances Question 8 2 pts When preparing a bank reconciliation, a debit memorandum for $400 was on Smythe Co.'s bank statment for a NSF check that was received from a customer. The check had been included in an earlier deposit when it was received from the customer. The NSF check had not been recorded previously by Smythe Co. Which of the following statement correctly details what should be done with this $400 NSF check when preparing the reconciliation? Deduct $400 for the NSF check from Smythe Co.'s balance Add $400 for the NSF check to the bank balance Add $400 for the NSF check to Smythe Cols balance Deduct $400 for the NSF check to the bank balance Question 10 2 pts A summary of all checking account transactions is mailed to each company by the bank once per month or made available at all times online is called a(an) O none of these bank statement account summary cash account statement Question 11 2 pts What are coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions called? accounts receivable bank drafts merchandise inventory cash Question 12 2 pts What term is used for checks that have been written and recorded in the checkbook or check register by a business but have not been paid by the bank because of a timing difference (the checks have not been received or cleared by the bank)? O outstanding checks Opetty checks O petty checks transit checks Question 13 2 pts A company's cash account balance in the bank records is a(an) to the bank. capital account O equity asset liability Question 14 2 pts What is the term used for a special cash fund used to pay small expenses such as postage and miscellaneous expenses? petty cash fund voucher O drawing fund change fund Question 15 2 pts is a written promise to pay a sum of money on demand or at a Alan definite time. O promissory note O cash equivalent accounts receivables O accounts payable Question 16 2 pts What is term for an operating expense associated with credit sales based on uncollectible accounts receivables. write-off expense bad debt expense O allowance for doubtful accounts o collection expense Question 17 2 pts The is a method that records bad debt expense by estimating uncollectible accounts at the end of the accounting period. bad debt expense method allowance method uncollectible accounts method direct write-off method Question 17 2 pts The is a method that records bad debt expense by estimating uncollectible accounts at the end of the accounting period. Obad debt expense method allowance method uncollectible accounts method direct write-off method Question 18 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the face amount or principal amount of the note? O $3,600 O $600 O $60,000 $63,600 Question 19 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the amount of interest due on the note when the note matures? $600 $3,600 O $60,600 O $60,000 Question 20 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the maturity value of the note? $3,600 O $600 $60,600 $60,000 Question 22 2 pts If the Accounts Receivable balance is $200,000 and the Allowance for Doubtful Accounts is $20,000 at the end of the accounting cycle, what amount should be on the Balance Sheet? O $200,000 $20,000 O $220,000 $180,000 Question 22 2 pts If the Accounts Receivable balance is $200,000 and the Allowance for Doubtful Accounts is $20,000 at the end of the accounting cycle, what amount should be on the Balance Sheet? $200,000 $20.000 O $220,000 $180,000 Question 23 2 pts The inventory system in which each purchase and sale of merchandise is continuously recorded along with the balance in the inventory account and cost of merchandise sold is a/an system sales inventory costing inventory O perpetual inventory periodic inventory Question 24 2 pts Merchandise inventory is classified as a/an on the Balance Sheet. O current liability O current asset O fixed asset operating expense Question 25 2 pts meaning that the oldest The cost flow assumption stands for inventory items are recorded as sold first. OSIM: Specific Identification Method OLIFO: Last-in, First-out O FIFO; First-in, first-out WAM; Weighted Average Method 14 Mir D Question 8 2 pts When preparing a bank reconciliation, a debit memorandum for $400 was on Smythe Co.'s bank statment for a NSF check that was received from a customer. The check had been included in an earlier deposit when it was received from the customer. The NSF check had not been recorded previously by Smythe Co. Which of the following statement correctly details what should be done with this $400 NSF check when preparing the reconciliation? Deduct $400 for the NSF check from Smythe Co's balance Add $400 for the NSF check to the bank balance Add $400 for the NSF check to Smythe Co.'s balance Deduct $400 for the NSF check to the bank balance When a bank reconciliation is prepared, what two amounts must equal in order to indicate that the reconciliation is in balance?" O Bank statement and Checkbook balances Outstanding checks and outstanding deposits Debit and credit memorandums Adjusted balances Question 8 2 pts When preparing a bank reconciliation, a debit memorandum for $400 was on Smythe Co.'s bank statment for a NSF check that was received from a customer. The check had been included in an earlier deposit when it was received from the customer. The NSF check had not been recorded previously by Smythe Co. Which of the following statement correctly details what should be done with this $400 NSF check when preparing the reconciliation? Deduct $400 for the NSF check from Smythe Co.'s balance Add $400 for the NSF check to the bank balance Add $400 for the NSF check to Smythe Cols balance Deduct $400 for the NSF check to the bank balance Question 10 2 pts A summary of all checking account transactions is mailed to each company by the bank once per month or made available at all times online is called a(an) O none of these bank statement account summary cash account statement Question 11 2 pts What are coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions called? accounts receivable bank drafts merchandise inventory cash Question 12 2 pts What term is used for checks that have been written and recorded in the checkbook or check register by a business but have not been paid by the bank because of a timing difference (the checks have not been received or cleared by the bank)? O outstanding checks Opetty checks O petty checks transit checks Question 13 2 pts A company's cash account balance in the bank records is a(an) to the bank. capital account O equity asset liability Question 14 2 pts What is the term used for a special cash fund used to pay small expenses such as postage and miscellaneous expenses? petty cash fund voucher O drawing fund change fund Question 15 2 pts is a written promise to pay a sum of money on demand or at a Alan definite time. O promissory note O cash equivalent accounts receivables O accounts payable Question 16 2 pts What is term for an operating expense associated with credit sales based on uncollectible accounts receivables. write-off expense bad debt expense O allowance for doubtful accounts o collection expense Question 17 2 pts The is a method that records bad debt expense by estimating uncollectible accounts at the end of the accounting period. bad debt expense method allowance method uncollectible accounts method direct write-off method Question 17 2 pts The is a method that records bad debt expense by estimating uncollectible accounts at the end of the accounting period. Obad debt expense method allowance method uncollectible accounts method direct write-off method Question 18 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the face amount or principal amount of the note? O $3,600 O $600 O $60,000 $63,600 Question 19 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the amount of interest due on the note when the note matures? $600 $3,600 O $60,600 O $60,000 Question 20 2 pts A 60-day, 6% note for $60,000, dated June 1, is received from a customer on account. What is the maturity value of the note? $3,600 O $600 $60,600 $60,000 Question 22 2 pts If the Accounts Receivable balance is $200,000 and the Allowance for Doubtful Accounts is $20,000 at the end of the accounting cycle, what amount should be on the Balance Sheet? O $200,000 $20,000 O $220,000 $180,000 Question 22 2 pts If the Accounts Receivable balance is $200,000 and the Allowance for Doubtful Accounts is $20,000 at the end of the accounting cycle, what amount should be on the Balance Sheet? $200,000 $20.000 O $220,000 $180,000 Question 23 2 pts The inventory system in which each purchase and sale of merchandise is continuously recorded along with the balance in the inventory account and cost of merchandise sold is a/an system sales inventory costing inventory O perpetual inventory periodic inventory Question 24 2 pts Merchandise inventory is classified as a/an on the Balance Sheet. O current liability O current asset O fixed asset operating expense Question 25 2 pts meaning that the oldest The cost flow assumption stands for inventory items are recorded as sold first. OSIM: Specific Identification Method OLIFO: Last-in, First-out O FIFO; First-in, first-out WAM; Weighted Average Method