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51問 • 1年前

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Which of the following may be used to compute for theadjusted balance of cash? a. Balance per books + Credit memo Debit memo- Understatement of cash collections b. Balance per books +Credit memo - Debit memo +Overstatement of cash collections Debit memo c. Balance per books + Credit memo - Debit Memo +Overstatement of cash disbursements d. Balance per books + Credit memo - Debit memo-Overstatement of cash disbursements

Which of the following is used to compute for the adjusted balance of cash? a. Balance per bank statement + Deposits in transit- Outstanding checks Erroneous credit to the account made by the bank b. Balance per bank statement +Deposits in transit - Outstanding checks + Erroneous credit to the account made by the bank c. Balance per bank statement + Deposits in transit Outstanding checks - Erroneous debit to the account made by the bank d. Balance per bank statement + Deposits in transit - Outstanding checks, net of certified checks - Erroneous credit to the account made by the bank

Which of the following reconciliation items requires a journal entry in the books of ABC Co.? a. Amortization of loan of XYZ, Inc. erroneously credited by the bank to ABC Co.'s account b. NSF check returned by bank and re-deposited by ABC Co. during the period and appropriately cleared the bank in the same period c. Cash deposits made but were not yet credited to ABC Co.'s account as of cut-off date d. Customer payments directly remitted to the bank

When preparing a proof of cash, a credit memo from the previous month is a. extended to the book receipts column as an addition. b. extended to the bank receipts column as an addition. c. extended to the book receipts column as a deduction. d. not extended in any of the book columns.

Which of the following methods of determining bad debts expense does not properly match expense and revenue? a. Charging bad debts with a percentage of sales under the allowance method. b. Charging bad debts with an amount derived from a percentage of accounts receivable under the allowance method. c. Charging bad debts with an amount derived from aging accounts receivable under the allowance method. d. Charging bad debts as accounts are written off as uncollectible.

Which of the following is a generally accepted method of determining the amount of the adjustment to bad debt expense? a. A percentage of sales adjusted for the balance in the allowance b. A percentage of sales not adjusted for the balance in the allowance c. A percentage of accounts receivable not adjusted for the balance in the allowance d. An amount derived from aging accounts receivable and not adjusted for the balance in the allowance

The advantage of relating a company's bad debt expense to its outstanding accounts receivable is that this approach a. gives a reasonably correct statement of receivables in the balance sheet. b. best relates bad debt expense to the period of sale. c. is the only generally accepted method for valuing accounts receivable. d. makes estimates of uncollectible accounts unnecessary.

When the allowance method of recognizing uncollectible accounts is used, how would the collection of an account previously written off affect the following accounts? #1: Accounts receivable; #2: Allowance for uncollectible accounts a. Increase, Decrease c. No effect, Decrease b. Increase, No effect d. No effect, Increase

Which of the following methods of determining annual bad debt expense best achieves the matching concept? a. Percentage of sales b. Percentage of ending accounts receivable c. Percentage of average accounts receivable d. Direct write-off

What is the effect on the total assets of a business when an accounts receivable has been collected? a. increase in total assets c. no change in total assets b. decrease in total assets d. decrease in cash

Which of the following would be considered part of the category "trade receivables"? a. Advances to employees b. Income tax refunds receivable c. Dividends receivable d. Amounts due from customers

According to PFRS 9 Financial Instruments, trade receivables that do not have a significant financing component are initially measured at a. fair value. b. fair value plus transaction costs. d. any of these c. the transaction price.

An operating cycle a. is twelve months or less in length. b. is the average time required for a company to collect its receivables. c. is used to determine current assets when the operating cycle is longer than one year. d. begins with inventory and ends with cash.

Which of the following may not be an acceptable method of computing for doubtful accounts to be charged to profit or loss? a. Percentage of sales b. Percentage of ending balance of accounts receivable c. Based on age of accounts d. Partly based on aging and partly based on percentage of specific accounts receivables

Accounts receivable are subsequently measured at their recoverable historical costs. Which of the following methods of estimating uncollectible accounts is in conformance with the PFRSs? a. Allowance method c. a or b b. Direct write-off d. none of these

The amount computed under the percentage of credit sales method is the a. bad debts expense for the period. b. required balance of the allowance account. c. a orb d. none of these

The amount computed under the percentage of receivables and aging methods is the a. bad debts expense for the period. b. required balance of the allowance account. c. a or b d. none of these

Which of the following methods may be used to estimate doubtful accounts? I. percentage of credit sales II. percentage of receivables III. aging of receivables. IV. combination of these methods a. I only b. I, II and III c. II and III only d. all of these

The adjusting entry to eliminate a credit balance in a receivable account or a debit balance in a payable account a. decreases total receivables. b. increases total receivables. c. choice (b) for a receivable account; choice (a) for a payable account d. does not affect total receivables.

Which of the following receivables is most likely to be presented as current asset? a Receivable from a subscriber of the entity's own shares b. Advances to affiliates, the settlement date is not yet agreed upon. c. Loan receivables from rom the entity's officers collectible beyond 12 months d. Long-term receivables of a construction firm. The firm's normal operating cycle extends beyond one year.

Trade receivables are presented as current assets a. when they are collectible within one year. b. when they are collectible within an entity's normal operating cycle. c. when they are backed by sufficient collateral security. d. when they are collectible within an entity's normal operating cycle, even if the normal operating cycle extends beyond one year.

These are receivables that arise from the sale of goods or services in the ordinary course of business. a. Financial assets c. Accounts receivables b. Trade receivables d. Note receivables

Non-trade receivables are a. non-derivative financial instruments which do not require settlement in cash. b. non-derivative financial assets which may or may not be settled through the receipt of cash. c. derivative or non-derivative financial instruments which do not require settlement in cash. d. receivables other than trade receivables.

If the balance shown on a company's bank statement is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be a. deposits credited by the bank but not yet recorded by the company. b. outstanding checks. c. bank charges not yet recorded by the company. d. deposits in transit.

If the cash balance shown in a company's accounting records is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be a. deposits credited by the bank but not yet recorded by the company. b. deposits in transit. c. outstanding checks. d. bank charges not yet recorded by the company.

Which of the following is not considered cash for financial reporting purposes? a. Petty cash funds and change funds b. Money orders, certified checks, and personal checks c. Coin, currency, and available funds d. Postdated checks and I.O.U.'s

Which of the following should not be included in cash? a. postdated checks drawn and delivered to payees b. undelivered checks drawn c. postdated checks received from customers d. cash collections not deposited at year-end

Bank overdrafts should be a. reported as current liabilities. b. offset from the balance of cash. c. reported as current liabilities except when offsetting is permitted. d. disclosed only

Compensating balances that are not legally restricted a. are excluded from cash. b. are included in cash. c. should not be disclosed in the notes. d. b and c

The voucher system a. is an internal control over cash receipts and disbursements which requires that all cash transactions should besupported by written authorization embodied in document called voucher. b. requires debiting voucher payable every time a cash disbursement is made. c. is an internal control over cash disbursements whid requires that every disbursement should be supported by a written authorization embodied in a document called voucher. d. requires the preparation of monthly bank statements.

In replenishing a petty cash fund, which one of the following entries is required? A. Debit Petty Cash, credit Cash in bank B. Debit individual expense accounts, credit Cash in bank C.Debit Petty Cash, credit individual expense accounts D. Debit Cash in bank, credit Petty Cash

In most situations, the petty cash fund is reimbursed just prior to the year-end and an adjusting entry is made to avoid a. the overstatement of cash and the understatement of expenses. b. the understatement of cash and the overstatement of expenses. c. the misstatement of revenues. d. the understatement of cash with the appropriate statement of expenses.

A petty cash system is designed to a. cash checks for employees. b. handle cash sales. c. account for all cash receipts and disbursements. d. pay small miscellaneous expenses.

On October 31, 2003, Dingo, Inc. had cash accounts at thre different banks. One account balance is segregated solely fora November 15, 2003 payment into a bond sinking fund. second account, used for branch operations, is overdrawn. The third account, used for regular corporate operations, has a positive balance. How should these accounts be reported in Dingo's October 31, 2003 classified balance sheet? a. The segregated account should be reported as a noncurrent asset, the regular account should be reported as a current asset, and the overdraft should be reported as a current liability. b. The segregated and regular accounts should be reported as current assets, and the overdraft should be reported as a current liability. c. The segregated account should be reported as a noncurrent asset, and the regular account should be reported as a current asset net of the overdraft. d. The segregated and regular accounts should be reported as current assets net of the overdraft.

Which of the following statements is incorrect? a. Cash that is restricted and not available for use within one year from the end of reporting period should be included in noncurrent assets. b. Cash fund that is being held specifically for the retirement of long-term debts not maturing currently should be excluded from current assets and shown as a noncurrent investment. c. Investments that can be liquidated at once and with little risk of loss of principal may be classified as cash equivalent and included in the caption "Cash and Cash equivalents." d. Cash and cash equivalents is always presented as the first line item in the statement of financial position.

Deposits held as compensating balances a usually do not earn interest. b. if legally restricted and held against short-term credit may be included as cash. c. if legally restricted and held against long-term credit may be included among current assets. d. none of these.

If an entity uses the income method of initial recording of income, the year-end adjusting entry involves a. crediting an income account for the earned portion of the advance payment received. b. debiting a liability account for the earned portion of the advance payment received. c. debiting an income account for the earned portion of the advance payment received. d. crediting a liability account for the unearned portion of the advance payment received.

Which of the following is incorrect regarding adjusting entries a. All adjusting entries involve at least one statement of financial position account and one statement of profit or loss and other comprehensive income account. b. Adjusting entries are used to update the balances of accounts prior to the preparation of the financial statements. c. Adjusting entries always affect the comprehensive income for the year. d. Adjusting entries always affect the profit or loss for the year but not the comprehensive income.

Which of the following errors may be revealed by a trial balance? a. A debit to salaries expense was posted in the ledger as debit to insurance expense. b. Expense already incurred was not recorded. c. The debit and credit posting of a credit sale were omitted. d. The credit posting of a payment of account payable was omitted.

The purpose of preparing a trial balance is a. to ensure that there were no errors committed. b. to prove that all journal entries were posted correctly. c. to prove the equality of the monetary totals of debits and credits. d. all of these

Which of the following statements is true? a. Journals are used under both the double-entry system and single-entry system b. The accrual basis of accounting cannot be applied under the single-entry system c. Both the cash basis and accrual basis of accounting can be used under a double-entry system but not under a single entry system. d. Subsidiary ledgers are used under both double and single- entry systems.

An accrued expense can best be described as an amount a. paid and currently matched with earnings. b. paid and not currently matched with earnings. c. not paid and not currently matched with earnings. d. not paid and currently matched with earnings.

If an entity uses the expense method of initial recording of expenses, the year-end adjusting entry involves a. debiting a prepaid asset account for the expired portion of the advance payment made. b. debiting an expense account for the expired portion of the advance payment made. c. crediting an expense account for the unexpired portion of the advance payment made. d. crediting a prepaid asset account for the unexpired portion of the advance payment made.

A prepaid expense can best be described as an amount a. paid and currently matched with revenues. b. paid and not currently matched with revenues. c. not paid and currently matched with revenues. d. not paid and not currently matched with revenues.

Reversing entries may not be made on adjusting entries for a. the accrual of income or expense. b. the unexpired portion of prepayments. c. the unearned portion of advances received. d. the expired portion of prepayments.

Adjusting entries that may be reversed include those for prepaid or unearned items that a. create an asset or a liability account. b. were originally entered in a revenue or expense accoun c. were originally entered in an asset or liability account. d. create an asset or a liability account and were origin entered in a revenue or expense account.

Which of the following may be reversed in the next financial reporting period? a. An adjusting entry to adjust the unearned income account for the earned portion of advance collections during the year. b. An adjusting entry to record bad debts expense on trade receivables. c. An adjusting entry to record depreciation expense. d. An adjusting entry to take up the unexpired portion of prepayments during the year.

This concept views each transaction as having a two-fold effect on values. a value received and a value parted with, and each transaction is recorded using at least two accounts. a. Equilibrium c. Twins concept b. Duality d. No I.D., No entry concept

Which of the following is a real account? a. Cash shortage or overage account b. Freight-in c. Unearned income d. Depreciation expense

1. What is the proper arrangement of the following steps in the accounting cycle? I. Preparing the adjusting entries II. Closing the books III. Posting IV. Preparing the reversing entries V. Preparing preparation) the financial statements (worksheet a. I, II, III, IV, V b. I, III, V, II, IV c. III, I, V, II, IV d. III, I, II, V, II, IV

A discount given to a customer for purchasing a large volume of merchandise is typically referred to as a a. quality discount b. cash discount c. trade discount d. size discount e. quantity discount

governance

Jan Rick Trinidad · 40問 · 2年前

governance