- Description
ACC 291T Wk 3 – Practice Connect Knowledge Check (2021.7 New)
Assume that the custodian of a $450 petty cash fund has $65 in coins and currency plus $382 in receipts at the end of the month. The entry to replenish the petty cash fund will include:
Multiple Choice
A debit to Petty Cash for $385.
A credit to Cash for $385.
A credit to Cash Over and Short for $3.
A debit to Cash for $382.
A debit to Cash for $450.
The following information is available for Montrose Company at December 31:
Cash in bank account $ 8,540
Petty cash $ 250
Short-term investment $ 10,400
Checks from customers $ 1,350
Equipment $ 805
Treasury bill maturing in 60 days $ 10,000
Money orders $ 290
A three-year certificate of deposit maturing in three years $ 6,000
________________________________________
Based on this information, the amounts considered Cash and Cash Equivalents, respectively on December 31 are:
Multiple Choice
Cash $8,790; Cash equivalents $26,400
Cash $19,190; Cash equivalents $16,000
Cash $11,235; Cash equivalents $26,400
Cash $10,430; Cash equivalents $20,400
Cash $8,540; Cash equivalents $22,290
A purchase order is a document the purchasing department sends to the vendor to place an order.
Group startsTrue or False
Spencer Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a:
Multiple Choice
Debit to Petty Cash for $200.
Credit to Cash for $182.
Credit to Cash Over and Short for $18.
Credit to Inventory for $127.
Debit to Cash Over and Short for $18.
Internal controls are crucial to global companies because of all of the following risks except:
Multiple Choice
Possible fraud.
Management’s inability to certify the effectiveness of the controls.
Additional costs of inefficient operations.
Possible misstatement of financial information.
Controls are significantly different across the globe.
Great Falls Co.’s bank reconciliation as of February 28 is shown below.
Bank balance $ 37,643 Book balance $ 38,153
+ Deposit in transit 2,950 Note collection +745
– Outstanding checks -1,730 Check printing -35
Adjusted bank balance $ 38,863 Adjusted book balance $ 38,863
________________________________________
One of the adjusting journal entries that Great Falls must record as a result of the bank reconciliation includes:
Multiple Choice
Debit Miscellaneous Expense $35; credit Accounts Payable $35.
Debit Cash $2,950; credit Accounts Receivable $2,950.
Debit Cash $745; credit Note Receivable $745.
Debit Note Payable $745; credit Cash $745.
Debit Cash $2,950; credit Sales $2,950.
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is:
Multiple Choice
Debit Petty Cash $250; credit Accounts Payable $250.
Debit Miscellaneous Expense $250; credit Cash $250.
Debit Cash $250; credit Petty Cash $250.
Debit Cash $250; credit Accounts Payable $250.
Debit Petty Cash $250; credit Cash $250.
Outstanding checks, deposits in transit, and bank service charges are added to the beginning balance of the bank statement to determine the adjusted bank balance.
Group startsTrue or False
A bank does not reduce the account of the depositor of which of the following?
Multiple Choice
A deposit to their account.
A fee assessed to the depositor’s account.
All withdrawals through an ATM.
Periodic payments arranged in advance, by a depositor.
An uncollectible check.
Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the reimbursement of the fund on September 30 includes a:
Multiple Choice
Debit to Office Supplies for $73.
Debit Petty Cash for $232.
Credit to Cash for $18.
Credit to Cash for $250.
Credit to Merchandise Inventory for $137.