Complete the mcq:
1)All of the following are objectives of internal control except
A. to comply with legal requirements.
B. to ensure accurate and reliable accounting records.
C. to maximize net income.
D. to safeguard assets.
2) In a bank reconciliation, an outstanding check is
A. added to the bank balance.
B. deducted from the book balance.
C. deducted from the bank balance.
D. added to the book balance.
3) All of the following are controls for cash received over the counter except
A. a printed receipt must be given to the customer.
B. the customer should be able to see the amounts entered into the cash register.
C. the sales clerk must have access to the cash register tape.
D. the cash drawer should open only when the sales clerk enters an amount on the keys.
4) Jubilee's Bakery is budgeting cash for 2017. The cash balance at December 31, 2016, was $ 6,000. Jubilee's Bakery budgets 2017cash receipts at $ 81, 000 Estimated cash payments include $ 44,000 for inventory, $ 34,000 for operating expenses, and $ 15,000 to expand the store. Jubilee's Bakery needs a minimum cash balance of $ 13,000 at all times.
Jubilee's Bakery expects to earn net income of $ 76,000 during 2017. What is the final result of the company's cash budget for 2017?
A There is $ 38,000 available for additional investments.
B. There is $ 19,000 available for additional investments.
C. Pay off $ 38,000of debt.
D. Must arrange new financing for $ 19,000
5) Which of the following assets are not included in "cash equivalents" in a typical balance sheet?
A. U.S. government securities
B. Foreign government securities
C. Time deposits
D. Certain very-low risk equity securities
E. All of the above might be included in "cash equivalents."
6) Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?
A. Competent and reliable personnel
B. Monitoring of controls
C. Assignment of responsibility
D. Separation of duties
7) In a bank reconciliation, an EFT cash payment is
A. deducted from the bank balance.
B. deducted from the book balance.
C. added to the book balance.
D. added to the bank balance.
8) If a bookkeeper mistakenly recorded a $ 34 deposit as $ 43, the error would be shown on the bank reconciliation as a
A. $ 9 addition to the book balance.
B. $ 43 deduction from the book balance.
C. $ 43 addition to the book balance.
D. $ 9 deduction from the book balance.
9) In a bank reconciliation, interest revenue earned on your bank balance is
A. deducted from the book balance.
B. added to the bank balance.
C. added to the book balance.
D. deducted from the bank balance.
10) All of the following are internal control procedures except
A. Sarbanes-Oxley reforms.
B. adequate records.
C. assignment of responsibilities.
D. internal and external audits.
11) USA National Bank, the nationwide banking company, owns many types of investments. Assume that USA National Bank paid $ 650,000 for trading securities on December 5. Two weeks later USA National Bank received a $ 40,000 cash dividend. At December 31, these trading securities were quoted at a market price of $ 657,000. USA National Bank's December income statement would include an
A. unrealized loss of $ 7,000.
B. unrealized loss of $ 2,000
C. unrealized gain of $ 7,000
D. unrealized gain of $ 47,000
12) Under the allowance method for uncollectible receivables, the entry to record uncollectible-account expense has what effect on the financial statements?
A. Decreases net income and decreases assets
B. Increases expenses and increases owners' equity
C. Decreases assets and has no effect on net income
D. Decreases owners' equity and increases liabilities
13) Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $ 100,000, and management estimates 4% will be uncollectible. Allowance for Doubtful Accounts prior to adjustment has a credit balance of $ 3,000. The amount of expense to report on the income statement will be
A. $ 7,000.
B. $ 4,000.
C. $ 6,000.
D. $ 1,500.
14) On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $ 30,000 note receivable. Azore's year-end is December 31. How much interest revenue should Azore accrue on December 31, 2016?
A. $ 1, 550
B. $ 2, 400
C. $ 1, 200
D. $ 1,000
15) Which of the following is included in the calculation of the quick (acid-test) ratio?
A. Prepaid expenses and cash
B. Cash and accounts receivable
C. Inventory and prepaid expenses
D. Inventory and short-term investments
16) On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $ 30,000 note receivable. Azore's year-end is December 31. If Azore, Inc., fails to make an adjusting entry for the accrued interest on December 31, 2016,
A. net income will be overstated and assets will be overstated.
B. net income will be understated and assets will be understated.
C. net income will be understated and liabilities will be overstated.
D. net income will be overstated and liabilities will be understated.
17) On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $ 30,000 note receivable. How much interest does Azore, Inc., expect to collect on the maturity date (February 1, 2017)?
A. $ 1,200
B. $ 2,400
C. $ 200
D. $ 2,000
18) On August 1, 2016, Azore, Inc., sold equipment and accepted a six-month, 8%, $ 30,000 note receivable. Azore's year-end is December 31. Which of the following accounts will Azore, Inc., credit in the journal entry at maturity on February 1, 2017, assuming collection in full?
A. Cash
B. Note Payable
C. Interest Payable
D. Interest Receivable
19) A company with net credit sales of $ 1 comma 017 comma 000, beginning net receivables of $ 90,000, and ending net receivables of $ 120 comma 000, has days' sales outstanding of (Round interim calculations to two decimal places, XX.XX and the days' sales outstanding (DSO) up to the next whole day.)
A.48 days.
B. 41 days.
C. 44 days.
D. 38 days.
20) Bank, the nationwide banking company, owns many types of investments. Assume that USA National Bank paid $ 650,000 for trading investments on December 5. Two weeks later, USA National Bank received a $ 40,000 cash dividend. At December 31, these trading securities were quoted at a market price of $ 657,000. At December 31, USA National Bank's balance sheet should report
A. investment in trading securities of $ 650,000
B. unrealized gain of $ 7,000
C. investment in trading securities of $ 657,000.
D. dividend revenue of $ 40,000