Question 14 pts The five components to a system of internal

Question 14 pts

The five components to a system of internal controls include all of the following except:

Flag this Question

Question 24 pts

An automobile company testing brakes on new vehicles is part of:

Flag this Question

Question 34 pts

Which account would we debit to open a new petty cash fund?

Flag this Question

Question 44 pts

Our company established a petty cash fund with a balance of $200. We have petty cash receipts for travel expenses that total $125. We have counted petty cash and found that we were $2 short. Which of the following would be included in the entry to replenish the fund?

Flag this Question

Question 54 pts

On a bank reconciliation, which of the following will not appear as a deduction on a bank statement?

Flag this Question

Question 64 pts

Our company received a bank statement with a balance of $10,000. The reconciling items include outstanding checks that totaled $2,000 and a deposit in transit of $1,000. What is the adjusted bank balance after we complete the bank reconciliation?

Flag this Question

Question 74 pts

Our company has decided to write off an uncollectible account of $3,000. What account would we credit to record bad debt expense if our company uses the direct write-off method for bad debts?

Flag this Question

Question 84 pts

Where does allowance for doubtful accounts appear on our financial statements?

Flag this Question

Question 94 pts

At the end of 2018, we have a credit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. The company uses the percentage of sales method to estimate bad debt expense. The company estimates that 3% of net credit sales will be uncollectible for the year. Net credit sales for the year amounted to $1,000,000. What account and amount would we debit to record the adjusting entry for bad debt expense?

Flag this Question

Question 104 pts

On July 1, 2017, our company accepts a 9-month 5% note for $12,000. What account and amount would we debit when we record the year-end adjusting entry on December 31, 2017?

control procedure

Solution

Q14. Answe r is Control Procedure Q24. Answer is risk Assessment. Q34. Answer is Petty cash Q44. Answer is a debit to Travel e xpense of $ 125. Q54. Answer is Service charges Q64. Answer is $ 9000. explanation: bank balance: $ 10000 Add: Deposit in transit           $ 1000 Less: Outstanding checks      $ 2000 Adjusted balance:                   $ 9000 Q74. Answer is Accounts receivable Q84. Answer is on Balance sheet as a contra assets related to Accounts receivable Q94. Answer is Bad debts expense $ 30000 Q104. Answer is Interest receivable $ 300. explanation: Interest due but not received: 12000*5% *6/12