A01 Lesson 2 Exam SCORE 100 PERCENT,A01 Online Exam 8_11 SCORE 100 Percent

  

Question 1 (5 points)

When services are rendered but payment is not made, which account would be increased?

Question 1 options:

  

accounts receivable

 

accounts   payable

 

cash

 

withdrawal

Question 2 (5 points)

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.

Question 2 options:

  

cash   and capital increase, $12,000

 

cash   and revenue increase, $12,000

  

Question 1 of 205.0 Points

Outstanding checks __________.

A. have been subtracted on the bank records but not the checkbook records 

B. have not been presented to the bank for payment and have not been subtracted from the checkbook

C. have not been presented to the bank for payment but have been subtracted in the checkbook

D. have been returned to the business for non-payment

Question 2 of 205.0 Points

Internal control over a company's assets should include which of the following?

A. Responsibilities and duties of employees will be divided. 

B. All cash receipts will be deposited into the bank the same day they arrive. 

C. All cash payments will be made by check (except petty cash..

D. All of these answers are correct.

Question 3 of 205.0 Points

The bank statement shows __________.

A. the beginning bank balance of the cash at the start of the month 

B. the checks the bank has paid and any deposits received 

C. any other charges or additions to the bank balance 

D. All of these answers are correct.

Question 4 of 205.0 Points

From the bank reconciliation no entry was recorded for deposits in transit. This would cause __________.

A. assets to be overstated 

B. assets to be understated 

C. no impact since deposits in transit are already included in the balance per books 

D. no impact since deposits are not recorded on the books

Question 5 of 205.0 Points

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________.

A. increase their cash account on the company's books 

B. decrease their cash account on the company's books 

C. increase the ending cash balance on the bank statement 

D. decrease the ending cash balance on the bank statement

Question 6 of 205.0 Points

The journal entry to reverse the entry of a customer's nonsufficient funds check would include a __________.

A. debit to Cash 

B. credit to Cash 

C. debit to Accounts Payable 

D. credit to Accounts Receivable

Question 7 of 205.0 Points

Advantages of on-line banking include __________.

A. convenience

B. transaction speed 

C. effectiveness

D. All of the above answers are correct.

Question 8 of 205.0 Points

The bank statement included bank charges. On the bank reconciliation, the item is __________.

A. an addition to the balance per company books 

B. an addition to the balance per bank statement 

C. a deduction from the balance per bank statement 

D. a deduction from the balance per company books

Question 9 of 205.0 Points

The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n. __________.

A. addition to the balance per books 

B. subtraction from the balance per books 

C. addition to the balance per bank 

D.  subtraction from the balance per bank

Question 10 of 205.0 Points

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

A. It is added to the bank balance. 

B. It is shown as a debit memo. 

 C. It is shown as a credit memo. 

D. None of these answers are correct.

Question 11 of 205.0 Points

Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information.

Cash balance on the bank statement

$2,350

Customer's check returned—NSF

500

Customer's note collected by the bank

600

Deposits in transit, November 30

1,400

Outstanding checks, November 30

2,650

A. $1,250 

B. $1,100 

C. $1,550 

D. $1,350

Question 12 of 205.0 Points

Which item should be added to the company's book balance during the bank reconciliation?

A. deposit in transit 

B. check outstanding 

C. bank service charge 

D. note collected by the bank

Question 13 of 205.0 Points

An example of an internal control is __________.

A. the use of a bank account 

B. the use of pre-numbered checks 

C. the use of checks with reference source documents 

D. All of these answers are correct.

Question 14 of 205.0 Points

Calculate, from the following information the adjusted cash balance at the end of April.

Bank statement ending cash balance

$2,000

General ledger cash balance ending

3,250

Bank monthly service charge

45

Deposits in transit

2,500

Outstanding checks

1,500

NSF check returned with bank statement

205

A. $3,000 

B. $4,250 

C.  $4,000 

D. $5,500

Question 15 of 205.0 Points

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

A. They would be added to the balance of the bank statement. 

B. They would be subtracted from the balance of the bank statement. 

C. They would be added to the balance per books. 

D. They would be ignored.

Question 16 of 205.0 Points

Which item(s. will require a journal entry to update the balance in the Cash account?

A. checks outstanding and deposits in transit 

B. bank service charges, note collected by the bank, and deposits in transit 

C. bank service charges, note collected by the bank, and error made by Accounting Services 

D. None of these answers are correct.

Question 17 of 205.0 Points

A restrictive endorsement on a check __________.

A. can be further endorsed by someone else 

B. is the safest endorsement for businesses 

C. permits the bank to use its best judgment 

D. None of these answers are correct.

Question 18 of 205.0 Points

Which of the following bank reconciliation items would be reflected in a journal entry?

A. error made by the bank 

B. outstanding checks 

C. bank service charges 

D. deposit in transit

Question 19 of 205.0 Points

Endorsing a check __________.

A. guarantees payment 

B. transfers the right to deposit or transfer cash 

C. cancels the transaction 

D. All of these answers are correct.

Question 20 of 205.0 Points

Company policy for internal control should include all of the following EXCEPT for what?

A. Employees will be rotated. 

B. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 

C. The owner (or responsible employee. signs all checks after receiving authorization to pay from the departments concerned. 

D. At time of payment, all supporting invoices or documents will be stamped "paid."

 

cash increases and accounts receivable decreases $12,000

 

accounts   receivable decreases and capital increases $12,000

Question 3 (5 points)

A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the company’s total assets is __________.

Question 3 options:

  

$875

 

$1,750

 

$2,875

 

$3,750

Question 4 (5 points)

An accounting report that shows the changes in capital during the accounting period is __________.

Question 4 options:

  

a   balance sheet

 

an   income statement

 

a statement of owner's equity

 

All   of these answers are correct.

Question 5 (5 points)

Which of the following transactions has no effect on owner's equity?

Question 5 options:

  

paying   salaries expense

 

equipment purchase

 

billing   for services rendered

 

a   withdrawal

Question 6 (5 points)

The increase or decrease in the owner's equity is reported on the __________.

Question 6 options:

  

income   statement

 

statement of owner's equity

 

balance   sheet

 

All   of these answers are correct.

Question 7 (5 points)

The payment of accounts payable would __________.

Question 7 options:

  

increase   both assets and liabilities

 

increase   assets and decrease liabilities

 

decrease both assets and liabilities

 

decrease   assets and increase liabilities

Question 8 (5 points)

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.

Question 8 options:

  

increase   in both cash and withdrawal

 

decrease   in both cash and withdrawal

 

decrease in cash and increase in withdrawal

 

increase   in cash and decrease in withdrawal

Question 9 (5 points)

The financial statement that shows revenue and expenses for a period of time is the __________.

Question 9 options:

  

balance   sheet

 

income statement

 

statement   of owner's equity

 

statement   of cash flows

Question 10 (5 points)

A company has $4,500 in its Revenue account at the end of a period. The Expenses are as follows: Rent, $750; Utilities, $150; Salaries, $2,400; Insurance, $225. The net income (loss. for the period is __________.

Question 10 options:

  

$3,600

 

($2,100.

 

$975

 

($1,425.

Question 11 (5 points)

Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________.

Question 11 options:

  

cause   a $6,000 increase in revenues and liabilities

 

cause   a $6,000 increase in revenues and a decrease in liabilities

 

cause a $6,000 increase in assets and revenues

 

not   be recorded until the cash is collected

Question 12 (5 points)

Which of the following is not one of the four basic financial statements?

Question 12 options:

  

Statement   of Cash Flows

 

Income   Statement

 

Statement of Company Position

 

Balance   Sheet

Question 13 (5 points)

The net income or net loss is calculated on the __________.

Question 13 options:

  

balance   sheet

 

statement   of owner's equity

 

income statement

 

None   of the above answers are correct.

Question 14 (5 points)

The statement of owner’s equity contains the __________.

Question 14 options:

  

owner’s capital for the beginning of the period

 

liabilities   of the company

 

total   amount owed by credit customers

 

balance   in the cash account

Question 15 (5 points)

The financial statement that shows business results in terms of revenue and expenses is __________.

Question 15 options:

  

an income statement

 

a   balance sheet

 

a   statement of owner's equity

 

the   statement of cash flows

Question 16 (5 points)

Which of the following statements is prepared first?

Question 16 options:

  

Statement   of Owner's Equity

 

Balance   Sheet

 

Income Statement

 

None   of the above

Question 17 (5 points)

An expense should be recorded when __________.

Question 17 options:

  

the   bill is paid

 

the expense is incurred

 

a   bill is received in the mail

 

None   of the above answers are correct.

Question 18 (5 points)

If 'Ol Fashioned Toys' revenues are less than its expenses during the accounting period, then __________.

Question 18 options:

  

owner's   withdrawals decrease net income

 

net   income causes liabilities to decrease

 

the business will incur a loss

 

owner's   withdrawals increase owner's equity

Question 19 (5 points)

If a company's revenues are higher than its expenses, it will cause __________.

Question 19 options:

  

an increase in owner's equity

 

a   decrease in owner's equity

 

an   increase in assets

 

no   effect on owner's equity

Question 20 (5 points)

BPK Industries has a net income for the period of $2,500. The balance in the Owner’s Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owner’s Capital account at the end of the period will be __________.

Question 20 options:

  

$5,850

 

$7,500

 

$850

 

$9,150