FA chapter 5 quiz

1

All of the following are objectives of internal control except

1

Requiring that an employee with no access to cash do the accounting is an example of
which characteristic of internal control?

1

All of the following are controls for cash received over the counter except

1

If a bookkeeper mistakenly recorded a $45 deposit as $54, the error would be shown on
the bank reconciliation as a

1

. If a bank reconciliation included a deposit in transit of $780, the entry to record this
reconciling item would include

1

Before paying an invoice for goods received on account, the controller or treasurer
should ensure that

1

Under the allowance method for uncollectible receivables, the entry to record
uncollectible-account expense has what effect on the financial statements?

1

Van Gogh Company uses the aging method to adjust the allowance for uncollectible accounts at the end of the period. At December 31, the balance of accounts receivable is $240,000
and the allowance for uncollectible accounts has a credit balance of $5,000 (before adjustment).
An analysis of accounts receivable produced the following age groups:

Based on past experience, Van Gogh estimates that the percentage of accounts that will prove
to be uncollectible within the three age groups is 2%, 8%, and 20%, respectively. Based on these
facts, the adjusting entry for uncollectible accounts should be made in the amount of

1

Refer to Question 5-58. The net receivables on the Balance Sheet is

1

Gordon Company uses the aging method in setting its allowance for doubtful receivables. Allowance for doubtful accounts prior to adjustment has a credit balance of $2,900. Management estimates that due to the economic crisis, a higher level of allowance is necessary and
decides that a $5,600 allowance is an appropriate amount at the year-end. The amount of expense to report on the Income Statement will be

Quiz on FA chapter 5 quiz, created by meli ssa on 18/02/2019.

FA chapter 5 quiz

All of the following are objectives of internal control except

Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?

All of the following are controls for cash received over the counter except

If a bookkeeper mistakenly recorded a $45 deposit as $54, the error would be shown on the bank reconciliation as a

. If a bank reconciliation included a deposit in transit of $780, the entry to record this reconciling item would include

Before paying an invoice for goods received on account, the controller or treasurer should ensure that

Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements?

Refer to Question 5-58. The net receivables on the Balance Sheet is

Requiring that an employee with no access to cash do the accounting is an example of
which characteristic of internal control?

If a bookkeeper mistakenly recorded a $45 deposit as $54, the error would be shown on
the bank reconciliation as a

. If a bank reconciliation included a deposit in transit of $780, the entry to record this
reconciling item would include

Before paying an invoice for goods received on account, the controller or treasurer
should ensure that

Under the allowance method for uncollectible receivables, the entry to record
uncollectible-account expense has what effect on the financial statements?