Instructions: Please circle the letter of the best response for each multiple choice question. Read each question carefully. Each multiple choice question is worth two points, unless otherwise noted. 1. Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense? a. Actual losses from uncollectibles b. A percentage of accounts receivable adjusted for the balance in the allowance C. A percentage of accounts receivable not adjusted for the balance in the allowance d. An amount derived from aging accounts receivable and not adjusted for the balance in the allowance 2. Which of the following items should not be included in the Cash caption on the balance sheet? a. Coins and currency in the cash register b. Checks from other parties presently in the cash register c. Amounts on deposit in checking account at the bank d. Postage stamps on hand 3. Lawrence Company has cash in bank of $25,000, restricted cash in a separate account of $4,000, and a bank overdraft in an account at another bank of $2,000. Lawrence should report cash of a. $23,000. b. $25,000. c. $28,000. d. $29,000 4. Kaniper Company has the following items at year-end: Cash in bank Petty cash Short-term paper with maturity of 2 months Postdated checks Kaniper should report cash and cash equivalents of a. $35,000 b. $35,300. C. $40,800. d. $42,200. $35,000 300 5,500 1,400