Question

Question 14 pts

The five components to a system of internal controls include all of the following except:

control procedure

risk assessment

safeguarding assets

monitoring controls

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Question 24 pts

An automobile company testing brakes on new vehicles is part of:

control procedure

risk assessment

information systems

monitoring controls

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Question 34 pts

Which account would we debit to open a new petty cash fund?

cash

petty cash

miscellaneous expense

petty cash expense

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Question 44 pts

Our company established a petty cash fund with a balance of $200. We have petty cash receipts for travel expenses that total $125. We have counted petty cash and found that we were $2 short. Which of the following would be included in the entry to replenish the fund?

a credit to petty cash for $127

a debit to travel expenses for $125

a credit to cash over and short for $2

a credit to cash for $125

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Question 54 pts

On a bank reconciliation, which of the following will not appear as a deduction on a bank statement?

deposit

NSF check (non-sufficient funds)

service charge

Payments made by EFT (electronic fund transfer)

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Question 64 pts

Our company received a bank statement with a balance of $10,000. The reconciling items include outstanding checks that totaled $2,000 and a deposit in transit of $1,000. What is the adjusted bank balance after we complete the bank reconciliation?

$7,000

$9,000

$11,000

$13,000

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Question 74 pts

Our company has decided to write off an uncollectible account of $3,000. What account would we credit to record bad debt expense if our company uses the direct write-off method for bad debts?

bad debt expense

accounts receivable

allowance for doubtful accounts

cash

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Question 84 pts

Where does allowance for doubtful accounts appear on our financial statements?

on balance sheet as a current liability

on income statement as part of cost of goods sold

on balance sheet as a contra asset related to accounts receivable

on the statement of retained earnings as a deduction from net income

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Question 94 pts

At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. The company uses the percentage of sales method to estimate bad debt expense. The company estimates that 3% of net credit sales will be uncollectible for the year. Net credit sales for the year amounted to $1,000,000. What account and amount would we debit to record the adjusting entry for bad debt expense?

bad debt expense, $30,000

allowance for doubtful accounts, $30,000

bad debt expense, $20,000

accounts receivable, $20,000

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Question 104 pts

On July 1, 2017, our company accepts a 9-month 5% note for $12,000. What account and amount would we debit when we record the year-end adjusting entry on December 31, 2017?

interest revenue, $300

interest revenue, $350

interest receivable, $300

interest receivable, $350

Answer 1

Q14.
Answe r is Control Procedure
Q24.
Answer is risk Assessment.
Q34.
Answer is Petty cash
Q44.
Answer is a debit to Travel e xpense of $ 125.
Q54.
Answer is Service charges
Q64.
Answer is $ 9000.
explanation: bank balance: $ 10000
Add: Deposit in transit           $ 1000
Less: Outstanding checks      $ 2000
Adjusted balance:                   $ 9000
Q74.
Answer is Accounts receivable
Q84.
Answer is on Balance sheet as a contra assets related to Accounts receivable
Q94.
Answer is Bad debts expense $ 30000
Q104.
Answer is Interest receivable $ 300.
explanation:
Interest due but not received: 12000*5% *6/12