1.
Which of the following is not a common internal control concept?
2. Which of the following is considered a good internal control practice?
3. An operational audit is:
4. Which of the following statements is correct regarding the reporting of cash?
What is a bank reconciliation?
In a bank reconciliation, outstanding checks are:
Cash includes each of the following except:
Restricted cash:
A firm has accounts receivable of $90,000 and a debit balance of $900 in the Allowance for Doubtful Accounts. Two-thirds of the accounts receivable are current and one-third is past due. The firm estimates that two percent of the current accounts and five percent of the past due accounts will prove to be uncollectible. The adjusting entry to provide for the bad debts expense under the aging method should be for what amount?
A firm receives a six-month note from a customer. The note has a face amount of $4,000 and an interest rate of nine percent. What is the total amount of interest to be received?
Miller Company received a 90 day, six percent note receivable for $10,000 on December 1. How much interest should be accrued on December 31?
Smith Company uses the allowance method to record its expected credit losses. It estimates its losses at one percent of credit sales, which were $750,000 during the year. The Accounts Receivable balance was $220,000 and the Allowance for Doubtful Accounts had a credit balance of $1,000 at year-end. What amount is the debit to the Bad Debts Expense?
Rankine & Company pays a three percent credit card fee on all credit sales, and receives a cash deposit immediately following each credit card transaction. If credit sales for the company total $15,000 on December 13, what journal entry should be recorded to recognize the receipt of cash and the credit card fee expense?
