Intermediate Accounting -quiz 5

Intermediate Accounting -quiz 5 - Intermediate Accounting...

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Intermediate Accounting 1, Quiz # 5 Group Date Name An operating cycle a. is twelve months or less in length. b. is the average time required for a company to collect its receivables. c. is used to determine current assets when the operating cycle is longer than one year. d. begins with inventory and ends with cash. The amount reported as "Cash" on a company's balance sheet normally should exclude a. postdated checks that are payable to the company. b. cash in a payroll account. c. undelivered checks written and signed by the company. d. petty cash. Which one of the following statements is incorrect? a. The accounting function should be separated from the custodianship of a company's assets. b. Certain clerical personnel in a company should be rotated among various jobs. c. The responsibility for receiving merchandise and paying for it should usually be given to one person. d. A company's personnel should be given well-defined responsibilities. If the balance shown on a company's bank statement is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be a. deposits credited by the bank but not yet recorded by the company. b. outstanding checks. c. bank charges not yet recorded by the company. d. deposits in transit. If the cash balance shown in a company's accounting records is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be a. deposits credited by the bank but not yet recorded by the company.
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Intermediate Accounting -quiz 5 - Intermediate Accounting...

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