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Unformatted text preview: Accounting 284 - Chapters 5&6
Spring 2009 - 15 points Dr. Clem
Quiz 3 Jr-6n \-\o\1'f\ Name: Class Time(circ1e): 11 am Multiple Choice Questions.
(3 pts each) -1.-1. ~ Row -->,(£>Y----- Write correct answer in space provided using capital letters.
I Jones Tools, Inc. has net sales during 2009 of $75,000, cost of goods sold
during 2009 of $45,000, and total operating expenses during 2009 of $15,000.
There were no other revenues and expenses. Assuming Jones' tax rate is 30%,
what is the net income reported on Jones' 2009 income statement? A. $ 4,500
D. $30,000 lS
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)' Which of the following is NOT an effective internal control procedure?
A. Separation of the physical handling and recording of cash receipts.
B. Monthly reconciliation of the bank accounts.
C. Separate signatures required for all payments.
Payment of outstanding accounts with cash rather than checks. ®
,fl.... ~3. A company's bank statement showed an ending balance for the.period of
$5,000. In reconciling the bank statement, the following items were found: 1) Outstanding checks
Deposits in transit
Bank service charges
NSF Check $ 500
110 The correct cash balance at the end of the month (i .e., after reconciling) should be
~ . $6,610
+ ,uoc> A. YJ·I \ ...
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This note was uploaded on 09/01/2011 for the course ACCT 284 taught by Professor Clem during the Fall '08 term at Iowa State.
- Fall '08