Question 1

1. Each disbursement from the petty cash fund should be supported by a petty cash voucher.

   True

   False

2 points

Question 2

1. It is impossible to construct a foolproof system of internal control.

   True

   False

2 points

Question 3

1. One of the easiest ways to help achieve internal control is to divide the cash receipts process among several persons.

   True

   False

2 points

Question 4

1. Which of the following items appears on a bank statement?

   	A.	Deposits in transit
   	B.	Bank service charges
   	C.	Outstanding checks
   	D.	All of the above answers appear on a bank statement

2 points

Question 5

1. The functions of handling cash receipts and cash disbursements should be completely separated, if possible.

   True

   False

2 points

Question 6

1. Sales rung on the cash register equaled $980.50. Cash in the drawer totaled $975.00. What entry correctly records this day's sales?

   A.

   Cash	975.00
   Sales		975.00

   B.

   Cash	980.50
   Cash Short and Over		5.50
   Sales		975.00

   C.

   Cash	980.50
   Sales		980.50

   D.

   Cash	975.00
   Cash Short and Over	5.50
   Sales		980.50

2 points

Question 7

1. Sales rung on the cash register equaled $2,269.60. Cash in the drawer totaled $2,271.60. Which entry correctly records this day's sales?

   A.

   Cash	2,271.60
   Cash Short and Over		2.00
   Sales		2,269.60

   B.

   Cash	2,269.60
   Cash Short and Over	2.00
   Sales		2,271.60

   C.

   Cash	2,269.60
   Sales		2,269.60

   D.

   Cash	2,271.60
   Sales		2,271.60

2 points

Question 8

1. Deposits in transit will appear as additions to the company's balance at the bank on the next bank statement.

   True

   False

2 points

Question 9

1. A company should require that at least two signatures appear on each check.

   True

   False

2 points

Question 10

1. Management tries to have "just the right amount" of cash available (within a certain range).

   True

   False

2 points

Question 11

1. The creation of a petty cash fund requires a journal entry to reflect the transfer of funds out of the general Cash account.

   True

   False

2 points

Question 12

1. A bank statement represents a report prepared by an outside entity that aids the company's efforts in cash control.

   True

   False

2 points

Question 13

1. Employees should be rotated in their job assignments when possible.

   True

   False

2 points

Question 14

1. The service potential of a machine could be measured in terms of:

   	A.	hours of operation.
   	B.	years of asset life.
   	C.	units produced.
   	D.	All of the above answers are correct.

2 points

Question 15

1. Depreciation is generally caused by:

   	A.	inadequacy.
   	B.	obsolescence.
   	C.	physical deterioration.
   	D.	All of the above answers are correct.

2 points

Question 16

1. The costs of land and land improvements should be recorded in the same account.

   True

   False

2 points

Question 17

1. The difference between "tangible" assets and "intangible" assets is primarily one of size and value.

   True

   False

2 points

Question 18

1. An estimate of salvage value is not needed to compute depreciation in the first year by which of the following methods?

   	A.	Units-of-output
   	B.	Double-declining balance
   	C.	Sum-of-the-years'-digits
   	D.	Straight-line

2 points

Question 19

1. Besides recording the acquisition of a plant asset, entries must be made to record:

   	A.	depreciation.
   	B.	subsequent expenditures.
   	C.	disposal.
   	D.	All of the above answers are correct.

2 points

Question 20

1. When land and buildings are purchased together, the total cost of the purchase should be divided between the two types of plant assets based on their respective appraised values.

   True

   False

2 points

Question 21

1. Under the double-declining balance method, the annual depreciation charge is computed by multiplying the book value of the asset at the beginning of the year by a fixed percentage.

   True

   False

2 points

Question 22

1. With a fairly constant output expected, the use of which of the following depreciation methods will yield the largest amount of depreciation expense for the first year of a machine's life?

   	A.	Double-declining balance
   	B.	Units-of-output
   	C.	Straight-line
   	D.	Sum-of-the-years'-digits

2 points

Question 23

1. If depreciation is basically a function of the length of time that an asset is owned, it should be recorded using the:

   	A.	sum-of-the-years'-digits method.
   	B.	double-declining-balance method.
   	C.	straight-line method.
   	D.	units-of-output method.

2 points

Question 24

1. Capital expenditures increase the net book value of the plant asset.

   True

   False

2 points

Question 25

1. Factors that affect the amount of depreciation expense when using the units-of-production method include the:

   	A.	book value.
   	B.	estimated salvage value.
   	C.	list price when new.
   	D.	fair market value.

2 points

Question 26

1. In The Profit's Planet PopcornVideo clip,Marcus hopes to grow Planet Popcorn to $10 million in annual revenue.

   True

   False

2 points

Question 27

1. In The Profit's Planet PopcornVideo clip,how much did Planet Popcorn make last year in net income per Marcus' accountant?

   	$319,000
   	$350,000
   	$2.5 million
   	$400,000

2 points

Question 28

1. In The Profit's Planet PopcornVideo clip,which business line at Planet Popcorn has the highest gross profit?

   	Popcorn
   	Crepes
   	Funnel Cakes
   	Soda

2 points

Question 29

1. In The Profit's Planet PopcornVideo clip,just by changing the packaging from a bag to a tin, Planet Popcorn expects to earn an additional $9 in revenue.

   True

   False

2 points

Question 30

1. In The Profit's Planet PopcornVideo clip,how much does Planet Popcorn make on a cart per day at Disney on average?

   	$2000
   	$1300
   	$685
   	$400

2 points

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