Business Test #3

Cash, not including cash equivalents, includes:

Principles of internal control include all of the following except:

Preparing a bank reconciliation on a monthly basis is an example of:

All of the following are considered effective cash management principles except:

Duerr Company makes a $60,000, 60-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is: (Use 360 days a year.)

The entry to record reimbursement of the petty cash fund for postage expense should include:

Internal controls are crucial to global companies because of all of the following risks except:

On a bank reconciliation, a bank fee for check printing not yet recorded by the company is:

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:

An asset's book value is $18,000 on December 31, Year 5. The asset has been depreciated at an annual rate of $3,000 on the straight-line method. Assuming the asset is sold on December 31, Year 5 for $15,000, the company should record:

Freeman Co. had net sales of $4.2 million and ending accounts receivable of $0.8 million. Its days' sales uncollected equals:

Jasper makes a $25,000, 90-day, 7% cash loan to Clayborn Co. Jasper's entry to record the transaction should be:

A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The journal entry to record this transaction would include a:

A total asset turnover ratio of 3.5 indicates that:

An asset can be disposed of by all of the following except:

A set of procedures and approvals for verifying, approving and recording liabilities for eventual cash payment, and for issuing checks for payment only of verified, approved, and recorded liabilities is referred to as a(n):

Internal control policies and procedures have limitations not including:

Frederick Company borrows $63,000 from First City Bank and pledges its receivables as security. Which of the following is true regarding this transaction:

The number of days' sales uncollected:

The voucher system of control:

The Cash Over and Short account:

A credit sale of $5,275 to a customer would result in which of the following?

The materiality constraint, as applied to bad debts:

Winkler Company borrows $85,000 and pledges its receivables as security. The journal entry to record this transaction would be: