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CHAPTER 4 NAME ___________________________________
TEN-MINUTE QUIZ SECTION _____________ DATE____________
_____________________________________________________________________________
_
_____ 1. Segregation of duties means that the person who has physical custody of an asset
is not the same person who has _______ responsibilities for that asset.
a. purchase
b. sales
c. record-keeping
d. all of the above
_____2. On the bank reconciliation, outstanding checks are:
a. Added to the cash balance per bank
b. Deducted from the cash balance per bank
c. Added to the cash balance per book
d. Deducted from the cash balance per book
_____ 3. On the bank reconciliation, service charges are:
a. Added to the cash balance per bank
b. Deducted from the cash balance per bank
c. Added to the cash balance per book
d. Deducted from the cash balance per book
_____ 4. On the bank reconciliation, collections made by the bank are:
a. Added to the cash balance per bank
b. Deducted from the cash balance per bank
c. Added to the cash balance per book
d. Deducted from the cash balance per book
_____ 5. The cash account must be adjusted for:
a. Transactions recorded on the books, but not on the bank statement
b. Transactions recorded on the bank statement, but not on the books
c. Transactions recorded on both the bank statement and the books
d. All of the above
_____ 6. Methods of accounting for uncollectible accounts include:
a. Direct write-off method
b. Sales (allowance) method
c. Accounts receivable (allowance) method
d. All of the above
_____ 7. Allowance for uncollectible accounts is a(n):
a. Revenue account
b. Expense account
c. Contra-revenue account
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4-1
d. Contra-asset account
Use the following data for questions 8-9:
Petarama wishes to account for bad debts. Accounts receivable has a balance of $40,000 and
sales for the period are $100,000. The allowance for doubtful accounts has a $2,000 credit
balance.
_____8. Petarama estimates its bad debts at 3.5% and uses the percentage of sales method.
The entry to estimate bad debts will be for what amount?
a. $2,000
b. $1,500
c. $3,500
d. $5,550
_____9. Petarama uses the aging of accounts receivable method. The total amount at the
bottom of its aging schedule is $6,000. The entry to estimate bad debts will be for
what amount?
a. $2,000
b. $4,000
c. $6,000
d. None of the above
_____ 10. Accounts receivable turnover is calculated as:
a. Net sales divided by average inventory
b. Cost of goods sold divided by average inventory
c. Cost of goods sold divided by average accounts receivable
d. Net sales divided by average accounts receivable
ANSWER KEY - CHAPTER 4 – TEN-MINUTE QUIZ
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4-2
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 4-3
