THE FINAL EXAM - 1 Which one of the following below is not...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Which one of the following below is not an element of internal control? (Points: 3) risk assessment monitoring information and communicationbehavior analysis 2. Which one of the following below reflects a weak internal control system? (Points: 3) all employees are well supervised a single employee is responsible for comparing a receiving report to an invoice all employees must take their vacationsa single employee is responsible for collecting and recording of cash 3. The debit balance in Cash Short and Over at the end of an accounting period is reported as (Points: 3) an expense on the income statement income on the income statement an asset on the balance sheet a liability on the balance sheet 4. On the bank's accounting records, customers' accounts are normally shown as (Points: 3) debit balancesexpenses an asseta liability 5. A bank statement (Points: 3) is a credit reference letter written by the company's bank. lets a company know the financial position of the bank as of a certain date. is a bill from the bank for services rendered. shows the activity that increased or decreased the company's account balance. 6. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n) (Points: 3) addition to the balance per the company's recordsaddition to the balance per the bank statement deduction from the balance per the bank statement deduction from the balance per the company's records 7. A $135 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a (Points: 3) credit to Petty Cash for $93. debit to Cash for $93. credit to Cash Over and Short for $2. credit to Cash for $49. 8. When does an account become uncollectible? (Points: 3) when the debtor fails to pay an account according to a sales contract when the debtor fails to pay a note on the due date there is no general rule for when an account becomes uncollectible at the end of the fiscal year 9. A 60-day, 10% note for $9,000, dated April 15, is received from a customer on account. The face value of the note is (Points: 3) $9,850 $7,200 $9,900 $9,000 10. The journal entry to record a note received from a customer to apply on account is (Points: 3) debit Notes Receivable; credit Accounts Receivabledebit Accounts Receivable; credit Notes Receivable debit Cash; credit Notes Receivable debit Notes Receivable; credit Notes Payable 11. Accounts Receivable Turnover measures (Points: 3) how frequently during the year the accounts receivable are converted to cash the number of days outstandingthe fair market value of accounts receivable the efficiency of the accounts payable function 12. The amount received by the endorser after discounting a note receivable at the bank is called the (Points: 3) proceeds maturity value face value realizable value 13. A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. If the note is discounted on
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/18/2010 for the course AC116 AC116 taught by Professor Janowich during the Spring '10 term at Kaplan University.

Page1 / 4

THE FINAL EXAM - 1 Which one of the following below is not...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online