Multiple Choices 1-20 (Please hi light the correct answers and submit them to me). Thanks :)

1

1.      Cash from sales of merchandise will be recorded in the

a.       cash receipts journal.

b.      sales journal.

c.       purchases journal.

d.      general journal.

2.      Which one of the following columns in a cash receipts journal is notposted in total to an account in the general ledger?

a.       Accounts Receivable column

b.      Cash column

c.       Sales Discounts column

d.      Other Accounts column

3.      A subsidiary ledger frees the general ledger from details of

a.       individual balances.

b.      internal transactions.

c.       The control account

d.      External account

4.      Postings are made daily to the

a.       Accounts Receivable control account.

b.       Accounts Payable control account.

c.        Control accounts in the general ledger.

d.       Accounts Receivable subsidiary ledger.

5.      Adjusting entries are recorded

a.       in the general journal.

b.      in the special journals.

c.       only on the worksheet.

d.      only in the general ledge

6.      The reference column of the accounts in the accounts payable subsidiary ledger after posting may show

a.       G, P, or S references.

b.       only CP references.

c.        only P references.

d.      CP, P, or G references.

7.      Richmond’s Wholesale uses a sales journal. An entry in this journal represents a

a.       debit to Sales Discounts; credit to Cash.

b.      debit to Accounts Receivable; credit to Sales Revenue.

c.       debit to Accounts Payable; credit to Sales Returns and Allowances.

d.      debit to Cash; credit to Sales Revenue.

8.      Entries in a sales journal

a.       are made from sales invoices.

b.      will indicate the invoice number in the reference column of the sales journal.

c.       will occupy two lines of the sales journal.

d.       indicate either a cash debit or accounts receivable debit.

9.      Principles of an efficient and effective accounting information system include all of the following except

a.       cost effectiveness.

b.       useful output.

c.        flexibility.

d.      all of these answer choices are principles.

10.  A student should recognize a need to study manual accounting systems because

a.       all small companies only use manual accounting systems.

b.      the structure of electronic systems differs greatly from manual systems.

c.        the software and hardware of electronic systems vary greatly, which makes manual procedures more practical to study.

d.       companies that use manual systems hire more accountants

11.  Internal control is defined, in part, as a plan that safeguards

a.       liabilities.

b.      capital stock.

c.       all balance sheet accounts.

d.      assets.

12.  Using prenumbered checks and having an approved invoice for each check is an example of

a.       establishment of responsibility.

b.      segregation of duties.

c.       documentation procedures.

d.      independent internal verification.

13.  Companies that are subject to, but fail to comply with, the Foreign Corrupt Practices Act of 1977

a.       may do so legally by obtaining an exemption.

b.      may be forced to sell their foreign subsidiaries.

c.       will be automatically dissolved.

d.      may be subject to fines and officer imprisonment.

14.  The principles of internal control include all of the following except

a.       establishment of responsibility.

b.      combining of duties.

c.       physical, mechanical, and electronic controls.

d.      independent internal verification.

15.  When opening a bank checking account, a signature card

a.       is required only when dealing with an out-of-state bank.

b.      indicates to whom money is to be paid.

c.       is attached to all pre-printed checks.

d.      indicates each person authorized to sign checks on the account.

16.  Trudy, Inc. had the following bank reconciliation at March 31, 2014:

Balance per bank statement, 3/31/14  $37,200 Please show solution

Add: Deposit in transit          

6,300

            43,500

Less: Outstanding checks      

8,600

Balance per books, 3/31/14    

$34,900

Data per bank for the month of April 2014 follow:

Deposits          $46,700

Disbursements49,700

All reconciling items at March 31, 2014 cleared the bank in April. Outstanding checks at April 30, 2014 totaled $6,000. There were no deposits in transit at April 30, 2014. What is the cash balance per books at April 30, 2014?

a.       $34,200

b.      $38,500

c.       $25,900

d.      $31,900

17.  Hoppmann Company wrote checks totaling $25,620 during October and $27,975 during November. $24,360 of these checks cleared the bank in October, and $27,330 cleared the bank in November. What was the amount of outstanding checks on November 30? Please show solution

a.       $2,355

b.      $1,260

c.       $1,905

d.      $645

18.  Carothers Company assembled the following information in completing its March bank reconciliation: balance per bank $7,640; outstanding checks $1,550; deposits in transit $2,500; NSF check $160; bank service charge $50; cash balance per books $8,800. As a result of this reconciliation, Carothers will

a.       reduce its cash account by $210.

b.      reduce its cash account by $950.

c.       increase its cash account by $110.

d.      reduce its cash account by $50.

19.  In the month of November, Kinsey Company Inc. wrote checks in the amount of $18,500. In December, checks in the amount of $25,316 were written. In November, $16,936 of these checks were presented to the bank for payment, and $21,766 were presented in December. What is the amount of outstanding checks at the end of November?

a.       $1,564

b.      $6,816

c.       $4,830

d.      $5,114

20.  If the month-end bank statement shows a balance of $72,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $3,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

a.       $114,000.

b.      $72,000.

c.       $33,000.

d.      $36,000.

 

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