Please complete within one hour is possible - if not cancel questions

5) On October1, 2018,Mandy's Electronic sold merchandise in exchange for a 4month, $50,000 notereceivable, with3% interest. Interest revenue of$500 is earned in 2018.

True

False

8)

Public companies_________.

A.

are required by the Financial Accounting Standards Board to maintain a system of internal controls

B.

must issue an internal control report which states that the outside auditor is responsible for the adequacy of internal controls

C.

are audited by accounting firms that do not also provide certain consulting services to the public company

D.

are overseen by the Public Company Accounting Oversight Board

10) The Allowance for Bad Debts has a credit balance of $ 8 comma 000

$8,000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the agingminus

ofminus

receivablesmethod, thecompany's management estimates that uncollectible accounts will be $ 18 comma 000

$18,000. What will be the amount of Bad Debts Expense reported on the incomestatement?

A.

$10,000

B.

$ 26,000

C.

$18,000

D.

$ 8, 000

14) Companies receive cash either over thecounter, through themail, or by electronic funds transfer.

True

False

16) A cash equivalent is a highly liquid investment that can be converted into cash in one year or less.

True

False

17) The petty cash fund at Brookshire Company has a designated balance of $350. The fund currently holds $128 in cash and $231 in petty cash tickets. Based on thisinformation, which of the following statements iscorrect?

A.

The total of the cash on hand plus petty cash tickets equals the designated fund balance.

B.

The petty cash fund custodian must locate the $9 discrepancy.

C.

To replenish the petty cashfund, the company must write acheck, payable to PettyCash, for $231.

D.

A shortage of $9 exists.

18) Acompany's Cash account shows an ending balance of $4,600. Reconciling items included a bookkeeper error of $105 (a $525 check recorded as $630), two outstanding checks totaling $810, a service charge of $ $20, a deposit in transit of $270, and interest revenue of $31. What is the adjusted bookbalance?

A.

$4,716

B.

$4,060

C.

$5,140

D.

$ 4,484

19) Under the allowancemethod, the entry to write off a receivable increases the amount of the Allowance for Bad Debts account.

True

False

20) The directwrite-off method for uncollectible accounts violates the matching principle.

True

False