The maker of a note is the party to whom payment is to be made.(1 Point)

True

False

61.After preparing a bank reconciliation, a journal entry would be required for which of the following:(1 Point)

A deposit in transit.

A deposit made by a company with a similar name and credited to your account.

A check for $48 given to a supplier but not yet recorded by the company's bank.

Interest earned on the company's checking account.

62.Internal control is strengthened by a policy of making payments by check, from cash receipts, or from a petty cash fund.(1 Point)

True

False

63.On October 12, 2017, Neptune Corporation invested $700,000 in short-term available-for-sale marketable securities. The market value of this investment was $730,000 at December 31, 2017, but had slipped to $725,000 by December 31, 2018. Assuming Neptune does not sell this investment, the fair value accounting adjustment necessary at December 31, 2018, includes:(2 Points)

A $25,000 credit to Unrealized Holding Gain on Investments.

A $5,000 debit to Investments in Marketable Securities.

A $5,000 debit to Unrealized Holding Gain on Investments.

A $725,000 debit to Investments in Marketable Securities.

64.At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs: Purchased in August: 30 units at $750 per unit. Purchased in November: 30 units at $700 per unit. A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand Assuming that Anderson uses the LIFO cost flow assumption, it should record this inventory shrinkage by:(3 Points)

Crediting Cost of Goods Sold $7,500.

Debiting Cost of Goods Sold $7,500.

Crediting Cost of Goods Sold $7,000.

Debiting Cost of Goods Sold $7,000.

65.An advantage of the average-cost method of accounting for inventory is that the inventory is valued in the balance sheet at current replacement costs.(1 Point)

True

False

66.Kennedy Company uses the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July, the company wrote-off a $3,500 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Doubtful Accounts was $3,000 larger than it was on July 1. What amount of uncollectible account expense was recorded for July?(2 Points)

$2,500.

$6,500.

$1,500.

$1,000.

67.In general, the longer an account receivable is outstanding, the greater the likelihood it will be collected.(1 Point)

True

False