Which account is NOT considered a cash equivalent:  Money Market Accounts, Accounts Receivable, Supplies

Accounts Receivable

Allowance for doubtful accounts is classified as

a Contra-Asset

What does the Accounts Receivable Turn Over Rate indicate?

How many times the receivable were converted into cash during the year

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

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

What does the bank reconciliation explain?

The differences between the cash balance on the bank statement and the cash balance of the depositors records

When preparing a bank reconciliation, the outstanding checks should be

deducted fromt he balance of the bank statement

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

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

How is INTEREST credited to the bank account handled on the bank reconciliation?

added to the book balance

How is a petty cash fund created?

Debit to Petty Cash and Credit to Cash

What account is used to replensih the petty cash fund?

Credit to Cash

Approximately, how many times a month is petty cash replenished?

Every two weeks, or two times a month

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

What accounts are used to increase the balance in the Petty Cash Fund?

Debit to Petty Cash and a Credit to Cash

Companies with large amounts of liquid resources often hold most of these resources in what type of investments?

Marketable Securities

Why are Marketable Securites classified as a current asset on the balance sheet?

Because they are liquid

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

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

Nike issued a $.10 dividend per share of stock.  You owned 2,000 shares of Nike stock.  What account would be credited?

Dividend Revenue

A line of credit would be classified as an Asset, Liability or as Owners Equity?

Asset

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

How is the bank service charge recorded in the bank reconciliaiton process?

Deducted from the Book balance

Define Outstanding Checks

Checks that have not been cleared by the bank.  The checks have been recorded in the cash ledger.

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