In: Accounting
Bank reconciliations are NOT:
sufficient to uncover all fraud. |
to be completed by all companies. |
useful. |
an important cash control. |
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Question 21 pts
Which of the following statements is correct regarding a recovery entry for accounts receivable?
It only effects the statement of income. |
It only effects the statement of financial position. |
It effects both the statements of financial position and of income. |
It effects neither the statement of financial position or statement of income. |
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Question 31 pts
The inventory of a grocery store retailer, such as Safeway, would consist primarily of _______________ .
finished goods inventory. |
The company would likely hold significant amounts of each of the other three types of inventory. |
work in process inventory. |
raw materials inventory. |
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Question 41 pts
A company that makes the following journal entry every time a sale occurs, is using what type of inventory system?
DR COGS expense
CR Inventory
A specific identification system. |
A periodic system. |
A just-in-time system. |
A perpetual system. |
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Question 51 pts
What is the correct equation to calculate the cost of good sold in a periodic inventory system?
Beginning inventory - Purchases + Ending inventory |
Beginning inventory + Purchases + Ending inventory |
Beginning inventory + Purchases - Ending inventory |
Beginning inventory - Purchases - Ending inventory |
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Question 61 pts
The use of the FIFO inventory flow assumptions means that:
the net income will always be higher. |
the company will eliminate the possibility of inventory obsolescence. |
the oldest units are included in ending inventory. |
the oldest units are included in cost of goods sold. |
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Question 71 pts
According to IFRS, how should inventory be valued on the balance sheet?
At historical cost. |
Lower of cost and net realisable value. |
At the total cost to purchase, market and sell the inventory. |
At fair market value. |
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Question 81 pts
Which of the following is correct for a company using the credit sales method to estimate the company's bad debts expense?
Bad debts expense x historic % = Allowance for doubtful accounts |
Bad debts expense = Accounts receivable x historic % |
Bad debts expense = Credit sales x historic % |
Bad debts expense = Sales revenue x historic % |
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Question 91 pts
If a company is experiencing cash flow shortages it may choose to sell its receivables to a third party. This is known as ________________ .
factoring. |
cash management. |
write-off. |
internal control. |
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Question 101 pts
In which of the following situations would the car be classified as inventory?
A car owned by a company, and used by a sales person to make deliveries. |
All of the other answers are correct. |
A second-hand car purchased by a used car dealer, which is sitting on the lot available for sale. |
A car owned by a company, and used by the company President. |
Q11. | ||||||||
Answer is Sufficient to cover all frauds | ||||||||
Q21. | ||||||||
Answer is It only effect the financial position statement. | ||||||||
Q31. | ||||||||
Answer is Finished goods inventory. | ||||||||
Q41. | ||||||||
Answer is A perpetyal system | ||||||||
Q51. | ||||||||
Aswer is Beginning Inventory+Purchases-Ending inventory | ||||||||
Q61. | ||||||||
Answer is The oldest units are included in cost of goods sold. | ||||||||
Q71. | ||||||||
Answer is Lower of cost and net realisable value. | ||||||||
Q81. | ||||||||
Answer is Bad debts expense = Credit sales *Historic % | ||||||||
Q91. | ||||||||
Answer is factoring. | ||||||||
Q101. | ||||||||
Answer is A second hand car puchased by a used car dealer, which is sitting n lot available for sale. |