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53.
The lower the accounts receivable turnover rate, the longer a company must wait to collect
from its credit customers.
54.
The higher a company's accounts receivable turnover rate, the more liquid the company's
receivables.
55.
Industries with relatively high accounts receivable turnover rates include restaurants and
hotels.
Multiple Choice Questions
56.
Financial assets include all of the following
except
:
57.
Each of these categories of assets is normally shown in the balance sheet at current
value,
except
:
58.
Financial assets:
59.
Which of the following is
not
considered a cash equivalent?
60.
The term cash equivalent refers to:
61.
When short-term investments appear in the balance sheet at their current market values,
it is an exception to the ______ principle.
62.
The unused portion of a line of credit:
63.
With a line of credit, a liability arises:
64.
In handling of daily cash transactions, a few minor errors inevitably will occur. Which of
the following is used to adjust the accounting records for these small errors?
65.
Which of the following is
not
an example of internal control over cash?
66.
The purpose of establishing a petty cash fund is to:
67.
A good system of internal control will include all of the following
except
:
68.
Which of the following does
not
contribute toward achieving internal control over cash?
69.
Which of the following practices best illustrates efficient management of cash?
70.
Efficient management of cash includes which of the following concepts?
71.
Which of the following is
not
a basic means of achieving internal control over cash
receipts?
72.
As of December 31, 2015, Valley Company has $16,920 cash in its checking account, as
well as several other items listed below:
What amount should be shown in Valley's December 31, 2015, balance sheet as "Cash and
cash equivalents"?
73.
As of December 31, 2015, Chippewa Company has $26,440 cash in its checking account,
as well as several other items listed below:
What amount should be shown in Chippewa's December 31, 2015, balance sheet as "Cash
and cash equivalents"?
74.
The bookkeeper prepared a check for $68 but accidentally recorded it as $86. When
preparing the bank reconciliation, this should be corrected by:
75.
After preparing a bank reconciliation, a journal entry would be required for which of the
following:
76.
Which of the following items on a bank reconciliation may not have been known to the
depositor until the bank statement had arrived?
77.
When preparing a bank reconciliation, outstanding checks will:
78.
When preparing a bank reconciliation, an NSF check will:
79.
A bank reconciliation explains the differences between:
80.
In reconciling a bank statement, which of the following items could cause the cash per the
bank statement to be greater than the balance of cash shown in the depositor's
accounting records?
81.
When preparing a bank reconciliation, deposits in transit will:
82.
An NSF check returned by the bank should be entered in the depositor's accounting
records by a debit to:
83.
In preparing a bank reconciliation, a service charge shown on the bank statement should
be:
84.
Enclosed with the bank statement received by Sydney Company at October 31 was an NSF
check for $300. No entry has yet been made by the company to reflect the bank's action in
charging back the NSF check. During preparation of the bank reconciliation, the NSF
check should be:
85.
When a bank reconciliation has been satisfactorily completed, the only related entries to
be made in the depositor's records are:
86.
Which of the following transactions will appear in the bank statement but generally not
have been recorded by the depositor?
87.
Which of the following items would cause cash per the bank statement to be smaller than
the balance of cash shown in the accounting records?
88.
Which of the following items would cause cash per the bank statement to be larger than
the balance of cash shown in the accounting records?
89.
In preparing the bank reconciliation, certain transactions recorded by the depositor may
not have been recorded by the bank. Which of the following is an example of this type of
transaction?
