Select the correct answer

Q1

At end of the day, the cash register's record shows $155, but the count of cash in the cash register is $150. The correct entry to record the cash sales for the day is:

Q2

A company receives a 10%, 60-day note for $2,400. The total interest due upon the maturity date is:

Q3

A machine that originally had an estimated useful life of 8 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining:

Which of the following is a good system of internal control: A. Urges adherence to prescribed managerial policies B. Insures profitable operations C. Eliminates the need for an audit D. Requires the use of non-computerized systems E. Is not necessary if the company uses a computerized system When, two clerks share same cash register, which one of the internal control principle is 1. violated? A. Establish responsibilities B. Maintain adequate records C. Insure assets D. Bond key employees E. Apply technological controls At end of the day, the cash register's record shows $155, but the count of cash in the cash register is $150. The correct entry to record the cash sales for the day is: 2. A. Cash Sales 150 150 . Cash 150 Cash over and short Sales 155 . Cash 155 Sales 155 D. Cash Sales Cash over and short 155 150 3. A company receives a 10%, 60-day note for $2,400. The total interest due upon the maturity date is A. $37.50 B. $40.00 C. $60.00 D. $240 E. $87.50 4. The materiality principle means: A. States that an amount can be ignored if its effect on financial statements is unimportant to the user's business decisions B. Requires use of the allowance method for bad debts C. Requires use of the direct write-off method D. States that bad debts not be written off E. Requires that expenses be reported in the same period as the sales they helped produce 5. A machine that originally had an estimated useful life of 8 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years At that point the remaining cost to be depreciated should be allocated over the remaining: A. 2 years B. 5 years C. 7 years D. 12 years E. 10 years 6. Which of the following is an Amortization: A. Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life B. Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use C. Is the process of allocating the cost of natural resources to periods when they are consumed D. Is an accelerated form of expensing an asset's cost 7. Khaled's company had a machine destroyed by fire. The machine originally cost $120,000. The accumulated depreciation on it was $60,000. The proceeds from the insurance company were $90,000. The company should recognize: A. A loss of $25,000 B. A gain of $25,000 C. A loss of $65,000 D.A gain of $30,000 E. A gain of $90,000 Land improvements are: A. Assets that increase the usefulness of land and like land, are not depreciated B. Assets that increase the usefulness of land, but that have a limited useful life and are subject to depreciation C. Included in the cost of the land account 8. D. Expensed in the period incurred