Final Exam1 - 1. In management's internal control report...

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Unformatted text preview: 1. In management's internal control report that is now required of all public companies, which of the following does not have a direct effect on a company's internal control system? (Points: 4) internal auditors independent accountants Board of Director's audit committee Board of trustees 2. There are three parties to a check. The drawer is ________. (Points: 4) a written document signed by the depositor is the one who signs the check ordering payment by the bank the bank on which the check is drawn the party to whom payment is to be made none of the above 3. A check drawn by a depositor for $180 in payment of a liability was recorded in the journal as $810. This item would be included on the bank reconciliation as a(n) ________. (Points: 4) addition to the balance per the depositor's records addition to the balance per the bank statement deduction from the balance per the bank statement deduction from the balance per the depositor's records 4. Jones Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Jones Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Jones Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Davis Company's July bank reconciliation should be ________. (Points: 4) $7,200 $12,600 $17,700 $18,000 5. Marcus Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, 9/30 $11,000 Note receivable collected by bank 6,000 Outstanding checks 9,000 Deposits-in-transit 4,500 Bank service charge 75 NSF 1,200 Using the above information, determine the cash balance per books (before adjustments) for the Marcus Company. (Points: 4) $9,775 $15,725 $15,500 $1,775 6. During 2007, Creative Inc has monthly cash expenses of $150,000. On December 31, 2007, their cash balance is $1,550,000. The ratio of cash to monthly cash expenses is _______. (Points: 4) 9.7 10.3 10.7 11.1 7. The LMN Co. uses the direct write-off method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be as follows: ________. (Points: 4) debit Allowance for Doubtful Accounts; credit Accounts Receivable debit Sales Returns and Allowance, credit Accounts Receivable debit Uncollectible Accounts Expense; credit Allowance for Doubtful Accounts debit Accounts Receivable, credit Uncollectible Accounts Expense debit Uncollectible Accounts Expense; credit Accounts Receivable 8. An estimate based on an analysis of receivables shows that $780 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $110. After preparing the adjusting entry at the end of the year, the balance in the Allowance for Doubtful Accounts is _______. (Points: 4) $110 $780 $670 $890 9. Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year...
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This note was uploaded on 08/05/2008 for the course AC 116 taught by Professor Hill during the Spring '08 term at Kaplan University.

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Final Exam1 - 1. In management's internal control report...

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