Acc557 Financial Accounting: Week 6 Study Guide (Chapters 7 and 8) - Version 1

Note: Please compare the questions outlined below with your own questions to make sure it's the same. There are other versions.

Acc557 Financial Accounting
Week 6 Study Guide (Chapters 7 and 8) - Version 1

Multiple Choice Question 126
If a check correctly written and paid by the bank for $418 is incorrectly recorded on the company's books for $481, the appropriate treatment on the bank reconciliation would be to
deduct $63 from the bank's balance.
add $63 to the bank's balance.
deduct $418 from the book's balance.
add $63 to the book's balance.

Multiple Choice Question 103
Keillor, Inc. established a $450 petty cash fund last year and replenishes it at the end of each month. During the first two weeks of May, $195 was disbursed from the petty cash box for various items. If a surprise count of the fund is made on May 15, the petty cash box should contain:
$255 cash left for May plus $450 cash for each month since creation of the petty cash fund.
$255 cash.
$450 cash and no receipts.
$255 cash and receipts for $195 in expenses.

IFRS Multiple Choice Question 233
The principles of internal control activities are used in the
internationally but not in the U.S.
U.S.but not globally.
in the U.S.and Canada but not globally.
globally.

Multiple Choice Question 75
A company stamps checks received in the mail with the words "For Deposit Only". This endorsement is called a(n)
blank endorsement.
rubber stamp.
operational endorsement.
restrictive endorsement.

Multiple Choice Question 47
The most important element of the fraud triangle is
incompatible duties.
rationalization.
financial pressure.
Opportunity.

Multiple Choice Question 120
In preparing its August 31, 2013 bank reconciliation, Annie Corp. has available the following information:
Balance per bank statement, 8/31/13 $21,650
Deposit in transit, 8/31/13 3,900
Return of customer’s check not sufficient funds, 8/30/13 600
Outstanding checks, 8/31/13 2,750
Bank service charges for August 100
At August 31, 2013, Annie’s adjusted cash balance is
$18,900.
$18,800.
$22,800.
$20,500

Multiple Choice Question 134
Winter Gloves Company had checks outstanding totaling $6,400 on its May bank reconciliation. In June, Winter Gloves Company issued checks totaling $39,900. The July bank statement shows that $35,700 in checks cleared the bank in July. A check from one of Winter Gloves Company's customers in the amount of $1,000 was also returned marked "NSF." The amount of outstanding checks on Winter Gloves Company's July bank reconciliation should be
$10,600.
$9,600.
$11,600.
$4,200

Multiple Choice Question 178
Which of the following statements concerning receivables is incorrect?
Notes receivable are often listed last under receivables.
Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
Interest revenue and gain on sale of notes receivable are shown under other revenues and gains.
The contingent liability from selling notes receivable should be disclosed.

Multiple Choice Question 153
When a note receivable is dishonored,
interest revenue is never recorded.
bad debts expense is recorded.
the maturity value of the note is written off.
Accounts Receivable is debited if eventual collection is expected.

Multiple Choice Question 86
The percentage of receivables basis for estimating uncollectible accounts emphasizes
the relationship between sales and accounts receivable.
cash realizable value.
the relationship between accounts receivable and bad debts expense.
income statement relationships

Multiple Choice Question 114
Jeff Retailers accepted $75,000 of Citibank Visa credit card charges for merchandise sold on July 1. Citibank charges 4% for its credit card use. The entry to record this transaction by Jeff Retailers will include a credit to Sales of $75,000 and a debit(s) to
Accounts Receivable $72,000 and Service Charge Expense $3,000.
Cash $72,000 and Service Charge Expense $3,000.
Cash $72,000 and Interest Expense $3,000.
Accounts Receivable $75,000.

IFRS Multiple Choice Question 251
Which board(s) has(have) faced bitter opposition when working to implement fair value measurement for financial instruments?
neither FASB nor IASB.
FASB, but not IASB.
IASB, but not FASB.
both FASB and IASB

IFRS Multiple Choice Question 250
Which board(s) has(have) worked to implement fair value measurement for financial instruments?
neither FASB nor IASB.
both FASB and IASB.
FASB, but not IASB.
IASB, but not FASB

Multiple Choice Question 95
Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $11,000. If the balance of the Allowance for Doubtful Accounts is $2,000 debit before adjustment, what is the balance after adjustment?
$9,000
$11,000
$13,000
$2,000

Multiple Choice Question 163
The financial statements of Danielle Manufacturing Company report net sales of $600,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the receivables turnover ratio for Danielle?
6.67 times
8 times
10 times
4 times
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