Accounting

11) Who should be responsible for preparing the bank reconciliation?

a) the person who makes the deposits

b) the person who writes the cheques

c) the person who maintains the accounting records

d) a person not involved in the day-to-day banking activities

12) Which of the following statements is incorrect?

a) Companies sell on account to increase total sales.

b) Companies sell on account to remain competitive.

c) Companies sell on account to generate additional forms of revenue.

d) Companies sell on account to increase bad debt expense.

13) Accounts Receivable are reflected on the statement of financial position at the carrying amount which is

a) Accounts Receivable plus Allowance for Doubtful Accounts.

b) Accounts Receivable less Allowance for Doubtful Accounts.

c) Accounts Receivable plus Bad Debt Expense.

d) Accounts Receivable less Bad Debt Expense.

14) Which of the following entries would be the appropriate entry for writing off an uncollectible account receivable under the allowance method?

a) Dr. Bad Debt Expense

Cr. Accounts Receivable

b) Dr. Sales

Cr. Accounts Receivable

c) Dr. Accounts Receivable

Cr. Bad Debt Expense

d) Dr. Allowance for Doubtful Accounts

Cr. Accounts Receivable