| Accounts Receivable | ||
| #1 | Which account is NOT considered a cash equivalent: Money Market Accounts, Accounts Receivable, Supplies |
Accounts Receivable |
| #2 | Allowance for doubtful accounts is classified as |
a Contra-Asset |
| #3 | What does the Accounts Receivable Turn Over Rate indicate? |
How many times the receivable were converted into cash during the year |
| #4 | Your company had net sales of $8.5 million. Your receivables were 1.2 a the beginning of the fisical period and 1.4 at the end of the fiscal period. What is the average number of days to collect AR? |
56 days |
| #5 | What is the adjusting entry that is needed to bring the allowance for doubtful accounts to the proper amount in the general journal? |
Uncollectable Accounts Expense and Allowance for Doubtful Accounts |
| Bank Rec | ||
| #1 | What does the bank reconciliation explain? |
The differences between the cash balance on the bank statement and the cash balance of the depositors records |
| #2 | When preparing a bank reconciliation, the outstanding checks should be |
deducted fromt he balance of the bank statement |
| #3 | When doing the bank reconciliaiton, you realize a check for $200 was erroneously entered as $500 by the company. What would you do to correct this on the bank statement? |
Increase the cash balance per the books |
| #4 | A company wrote a check for $76 and it cleared the BANK for $76. However the company recorded the check in the cash account as $67. How is the difference of $9 handled on the bank reconciliation? |
Deduct from the book balance |
| #5 | How is INTEREST credited to the bank account handled on the bank reconciliation? |
added to the book balance |
| Petty Cash | ||
| #1 | How is a petty cash fund created? |
Debit to Petty Cash and Credit to Cash |
| #2 | What account is used to replensih the petty cash fund? |
Credit to Cash |
| #3 | Approximately, how many times a month is petty cash replenished? |
Every two weeks, or two times a month |
| #4 | Petty cash was established with $125. Cash in the petty cash fund is $26 at the end of the month. Receipts for the month total $95. Whaat amount will be recorded as over/short? |
$4 |
| #5 | What accounts are used to increase the balance in the Petty Cash Fund? |
Debit to Petty Cash and a Credit to Cash |
| Marketable Securities | ||
| #1 | Companies with large amounts of liquid resources often hold most of these resources in what type of investments? |
Marketable Securities |
| #2 | Why are Marketable Securites classified as a current asset on the balance sheet? |
Because they are liquid |
| #3 | How do you record the adjusting entry for Marketable Securities at the end of the year when the market value is greater than your account balance? |
Debit Marketable Securities and Credit Unrealized Gain |
| #4 | When selling shares of a marketable security, how is the brokerage commission factored into the transaction? |
subtracted from the cash amount collected from the sale |
| #5 | Nike issued a $.10 dividend per share of stock. You owned 2,000 shares of Nike stock. What account would be credited? |
Dividend Revenue |
| Hodge Podge | ||
| #1 | A line of credit would be classified as an Asset, Liability or as Owners Equity? |
Asset |
| #2 | Is Marketable Securites debited or credited if there is a GAIN when preparing the Mark to Market adjusting entry at the end of the year? |
Marketable Securities will be DEBITED, Unrealized GAIN would be CREDITED |
| #3 | How is the bank service charge recorded in the bank reconciliaiton process? |
Deducted from the Book balance |
| #4 | Define Outstanding Checks |
Checks that have not been cleared by the bank. The checks have been recorded in the cash ledger. |
| #5 | On Feb 14, an accounts receivable for $2,000 is written off. What is the journal entry? |
Allowance for Doubtful Accounts is Debited and AR is Credited |
| Final Question | |