Problem 1. Which of the following is NOT one of the three phases which is needed when changing an accounting system, either in its entirety or in part?
- Analysis
- Design
- Review
- Implementation
Problem 2. Which of the following is NOT an element of Internal Controls?
- To protect assets from misuse
- Ensure the accuracy of business information
- Ensure that laws and regulations are followed
- To ensure that the company's policies are in place to maximize profits
Problem 3. At the end of the month, the total of the amount column of the revenue journal is posted as a
- Debit to Accounts Receivable and a credit to Cash
- Debit to Accounts Receivable and a credit to Fees Earned
- Debit to Cash and a credit to Fees Earned
- Debit to Cash and a credit to Accounts Payable
Problem 4. Which of the following transactions is recorded in the purchases journal?
- Purchase of store supplies on account
- Return of damaged office equipment
- Purchase of store supplies for cash
- Purchase of office equipment for cash
Problem 5. Which of the following transactions is recorded in the revenue journal?
- Sale of excess office equipment for cash
- Rendering services for cash
- Rendering services on account
- Sale of excess office equipment on account
Problem 6. The objectives of internal control are to
- Control the internal organization of the accounting department personnel and equipment
- Provide reasonable assurance that operations are managed to achieve goals,
- financial reports are accurate, and laws and regulations are complied with
- Prevent fraud, and promote the social interest of the company
- Provide control over "internal-use only" reports and employee internal conduct
Problem 7. A necessary element of internal control is
- Database
- Systems design
- Systems analysis
- Information and communication
Problem 8. Which of the following should NOT be considered cash by an accountant?
- Money orders
- Bank checking accounts
- Postage stamps
- Travelers' checks
Problem 9. The debit balance in Cash Short and Over at the end of an accounting period is reported as
- An expense on the income statement
- Income on the income statement
- An asset on the balance sheet
- A liability on the balance sheet
Problem 10. Which one of the following would NOT cause a bank to debit a company's account?
- Bank service charge
- Collection of a note receivable
- Checks marked NSF
- Wiring of funds to other locations
Problem 11. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)
- Addition to the balance per the company's records
- Addition to the balance per the bank statement
- Deduction from the balance per the bank statement
- Deduction from the balance per the company's records
Problem 12. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. What entry is required in the company's accounts?
- Debit Accounts Payable; credit Cash
- Debit Cash; credit Accounts Receivable
- Debit Cash; credit Accounts Payable
- Debit Accounts Receivable; credit Cash
Problem 13. Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts?
- Debit Miscellaneous Administrative Expense; credit Cash
- Debit Cash; credit Other Income
- Debit Cash; credit Accounts Payable
- Debit Accounts Payable; credit Cash
Problem 14. Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. What entry is required in the company's accounts?
- Debit Sales; credit Cash
- Debit Cash; credit Accounts Receivable
- Debit Cash; credit Sales
- Debit Accounts Receivable; credit Cash
Problem 15. A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a
- Credit to Petty Cash for $82.
- Debit to Cash for $110.
- Debit to Cash Over and Short for $12.
- Credit to Cash for $110
Problem 16. A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a
- Credit to Petty Cash for $96.50.
- Credit to Cash for $89.
- Debit to Cash Short and Over for $3.50.
- Credit to Cash Short and Over for $3.50.
Problem 17. Which of the following would NOT be included with the Cash and Equivalents on the Balance Sheet?
- Commercial Paper
- Short-Term Receivables
- Certificates of Deposit
- Money Market Mutual Funds
Problem 18. (Use the data found in the table below) Using the perpetual system, costing by the first-in, first-out method, what is the cost of the merchandise inventory of 30 units on September 30? (TABLE ATTACHED), check the attached file:
Problem 19: The following lots of a particular commodity were available for sale during the year (TABLE ATTACHED), check the attached file:
- $1,250
- $1,150
- $1,275
- $1,050