Question 14 pts

The five components to a system of internal controls include all of the following except:

control procedure

risk assessment

safeguarding assets

monitoring controls

Flag this Question

Question 24 pts

An automobile company testing brakes on new vehicles is part of:

control procedure

risk assessment

information systems

monitoring controls

Flag this Question

Question 34 pts

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

cash

petty cash

miscellaneous expense

petty cash expense

Flag this Question

Question 44 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

Flag this Question

Question 54 pts

On a bank reconciliation, which of the following will not appear as a deduction on a bank statement?

deposit

NSF check (non-sufficient funds)

service charge

Payments made by EFT (electronic fund transfer)

Flag this Question

Question 64 pts

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

$7,000

$9,000

$11,000

$13,000

Flag this Question

Question 74 pts

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

bad debt expense

accounts receivable

allowance for doubtful accounts

cash

Flag this Question

Question 84 pts

Where does allowance for doubtful accounts appear on our financial statements?

on balance sheet as a current liability

on income statement as part of cost of goods sold

on balance sheet as a contra asset related to accounts receivable

on the statement of retained earnings as a deduction from net income

Flag this Question

Question 94 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

Flag this Question

Question 104 pts

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

interest revenue, $300

interest revenue, $350

interest receivable, $300

interest receivable, $350