90.
When reading a bank statement, which reference indicates an increase in the cash
balance?
91.
While preparing the bank reconciliation, an accountant discovered that a $426 check
returned with the bank statement had been recorded erroneously in the depositor’s
accounting records as $462. In preparing the bank reconciliation the appropriate action to
correct this error would be to:
92.
The accounting records of Golden Company showed cash of $15,250 at June 30. The
balance per the bank statement at June 30 was $15,125. The only reconciling items were
deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000
returned by the bank which Golden had not yet charged back to the customer, and a bank
service charge of $25. The preparation of the bank reconciliation should indicate that
Golden’s adjusted cash balance at June 30 is:
93.
A bank statement shows a balance of $8,445 at June 30. The bank reconciliation is
prepared and includes outstanding checks of $2,790, deposits in transit of $1,350, and a
bank service charge of $30. Among the paid checks returned by the bank was check no.
900 in the amount of $600, which the company had erroneously recorded in the accounting
records as $60. The “adjusted cash balance” at June 30 is:
94.
Refer to the information above. What is the “adjusted cash balance” at June 30?
95.
Refer to the information above. What is the total amount of the outstanding checks at June
30?
7-45
96.
Refer to the information above. Upon completion of the bank reconciliation, a journal entry
will be required to update the depositor’s accounting records. This entry will include a:
The Cash account in the ledger of Clear Windows shows a balance of $12,596 at
September 30. The bank statement, however, shows a balance of $16,253 at the same
date. The only reconciling items consist of a bank service charge of $16, a large number of
outstanding checks totaling $6,740, and a deposit in transit.
97.
Refer to the information above. What is the adjusted cash balance in the September 30
bank reconciliation?
98.
Refer to the information above. What is the amount of the deposits in transit?
99.
Cardinal Company’s bank statement showed a balance at May 31 of $180,974. The only
reconciling items consisted of a large number of outstanding checks totaling $51,847. At
May 31, what balance should Cardinal’s Cash account show?
100.
All the following are steps included in the preparation of the bank reconciliation except:
101.
Marketable securities are:
102.
The financial statements of Baxter Corporation include an Unrealized Holding Gain on
Investments. This item:
103.
The adjustment of available for sale marketable securities to their current market value
affects:
104.
With available for-sale securities, unrealized holding gains and losses are:
105.
The valuation principle of “fair value accounting” applied to investments classified as
available for sale securities:
106.
Each of the following transactions would be reflected in both the income statement and
the statement of cash flows for the current period, except:
107.
Investments in available for sale marketable securities:
108.
The purpose of the fair value adjustment for securities classified as “available-for-sale”
is:
109.
The fair value accounting adjustment:
110.
An Unrealized Holding Gain (or Loss) on Investments classified as “available-for-sale”
securities:
111.
On December 30, 2015, Varsity Corporation sold available for sale marketable securities
costing $800,000 for $860,000 cash. The securities were purchased on January 2, 2013 and
the market value of the securities on December 31, 2013 and December 31, 2014 was
$820,000 and $780,000, respectively. How much gain or loss will Varsity report in its
income statement for the year ending December 31, 2015?
7-55
112.
Fisher Corporation invested $320,000 cash in available-for-sale marketable securities in
early December. On December 31, the quoted market price for these securities is
$337,000. Which of the following statements is correct?
If Fisher sells these investments on January 2 for $300,000, it will report a loss of
On October 12, 2014, Neptune Corporation invested $700,000 in short-term available-for-
sale marketable securities. The market value of this investment was $730,000 at
December 31, 2014, but had slipped to $725,000 by December 31, 2015.
113.
Refer to the information above. In financial statements prepared on December 31, 2014,
Neptune Corporation reports:
114.
Refer to the information above. Assuming Neptune does not sell this investment, the fair
value accounting adjustment necessary at December 31, 2015, includes:
115.
Refer to the information above. Assuming Neptune does not sell this investment, the
financial statements prepared at December 31, 2015 will report:
116.
Effective internal control over accounts receivable ensures:
117.
Effective internal control over accounts receivable ensures all of the following
except
:
118.
Effective internal control includes all the following steps
except
:
119.
The _______________ department compares what was shipped with what was ordered and
prepares and mails an invoice.
120.
The _______________ department ensures that the goods shipped match those ordered by
the customer.
121.
The Allowance for Doubtful Accounts will appear on the: