Answers 9-13

Company X estimates bad debt expense with an aging of accounts receivable schedule, in 20XX the company's estimate of uncollectible receivables resulting from the aging analysis is $190. The beginning balance of the allowance for doubtful accounts was $1.50. Write-offs of bad debts during the period were $270. What amount would be recorded as bad debt expense for the current period? a. $310 b. $230 c. $190 d. $270 Which of the following is not a step toward effective internal control over cash? a. Require signatures from manager and one financial officer on all checks b. Require that small purchase approvals and cash payments for such purchases be handled by the same individual. c. Require that the person responsible for removing the cash from the register have no access to the accounting records d. Require that cash be deposited daily at the bank. Which of the following statements regarding statement of cash flows is false? a. The statement of cash flows separates cash inflows and outflows into three major categories. b. The ending balance of the statement of cash flows for year 20xx must agree with the amount of cash shown on the balance sheet for 20xx year-end. c. The net increase (or decrease) in cash shown on the statement of cash flows for 20XX must equal the net income (or loss) on income statement for 20XX. d. Statement of cash flows can be prepared using the direct or the indirect approach. Which of the following statements regarding GAAP is true? a. U.S. GAAP is a body of accounting knowledge followed by all countries. b. GAAP is an abbreviation for generally accepted accounting procedures. c. Changes in GAAP must be approved by the U.S. Senate. d. Changes in GAAP can affect the interests of managers and shareholders. The cash T account has a beginning balance of $35, 000. During the year, $100, 000 was debited and 85, 000 was credited to the account. What is the ending balance of cash? a. $50, 000 credit balance b.$50, 000 debit balance c. $150, 000 credit balance d. $150, 000 credit balance At the end of the year, XYZ, Inc, has total assets of $350, 000. Ending balances for Retained Earnings, Common Stock, and Additional Paid-in Capital accounts are, $90, 000, $20, 000 and