Question 1 4 pts

Which of the following represents the safeguarding of assets?

placing small, high-priced items in a locked display case

reducing payroll expenses to increase net income

purchasing rather than leasing company vehicles

allowing the company president to handle cash

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Question 2 4 pts

All of the following are objectives of a companys internal control system except:

Encourage employees to follow policies.

Promote operation efficiency.

Ensure debt is paid in a timely manner.

Ensure accurate and reliable accounting records.

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Question 3 4 pts

Which account would we credit to open a new petty cash fund?

cash

petty cash

miscellaneous expense

petty cash expense

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Question 4 4 pts

Our company established a petty cash fund with a balance of $200. We have petty cash receipts for travel expenses that total $125. We have counted petty cash and found that we were $2 short. Which of the following would be included in the entry to replenish the fund?

a credit to petty cash for $127

a debit to travel expenses for $125

a credit to cash over and short for $2

a credit to cash for $125

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Question 5 4 pts

Our company wrote a check for $200 but mistakenly recorded the transaction in the general journal as $20. How would this error be included on the bank reconciliation?

as a deduction on the bank side

as an addition on the book side

as an addition on the bank side

as a deduction on the book side

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Question 6 4 pts

Our company received a bank statement with a balance of $10,000. The reconciling items include outstanding checks that totaled $1,000 and a deposit in transit of $2,000. What is the adjusted bank balance after we complete the bank reconciliation?

$7,000

$9,000

$11,000

$13,000

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Question 7 4 pts

Our company had the following financial information available for the current year:

• accounts receivable on December 31, $99,000;
• net credit sales for the year, $185,000;
• cash sales for year, $35,000; and
• accounts written off during the year, $12,500.

What account and amount would we credit to record bad debt expense if our company uses the direct write-off method for bad debts?

bad debt expense, $12,500

accounts receivable, $12,500

allowance for doubtful accounts, $22,500

bad debt expense, $22,500

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Question 8 4 pts

Our company has decided to write off an uncollectible account of $3,000. What account would we credit to write off this account if our company uses the allowance method for bad debts?

bad debt expense

accounts receivable

allowance for doubtful accounts

cash

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Question 9 4 pts

At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. The company uses the percentage of sales method to estimate bad debt expense. The company estimates that 3% of net credit sales will be uncollectible for the year. Net credit sales for the year amounted to $1,000,000. What account and amount would we debit to record the adjusting entry for bad debt expense?

bad debt expense, $30,000

allowance for doubtful accounts, $30,000

bad debt expense, $20,000

accounts receivable, $20,000

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Question 10 4 pts

On July 1, 2017, our company accepts a 9-month 5% note for $12,000. What account and amount would we credit when we record the year-end adjusting entry on December 31, 2017?

interest revenue, $300

interest revenue, $350

interest receivable, $300

interest receivable, $350

Please answer all the questions ..its for the the exam i need to pass please thank you