1. Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control?
A.Competent and reliable personnel
b. Assignment of responsibility
c. Monitoring of controls
d. separations of duties
2. All of the following are objectives of internal control except
a. Assignment of responsibility
b. Adequate records
c. Internal and external audits
d. Sarbanes-Oxley reforms
3.All of the following are objectives of internal control except
a. To ensure accurate and reliable accounting records.
b. To comply with legal requirements
c. To safeguard assets
d. To maximize net income
4. Comelius company had the following information in 2014
Account recievable 12/13/14 $ 12000
Account for uncollectible account 12/13/14 (before adjustment) $800
Credit sales during 2014 $41000
Cash sales during 2014 $12000
Collection for customers on account during 2014 $40000
If uncollectible acccounts are determined by the aging of recevables methods to be $1260 the uncollectible account expenses for 2014 would be $460. The balance of the account after the adjusting entry would be.
d. $ 460
5. Patrick company had the following information in 2014.
Account recievable 12/31/14 $ 14000
Allowance for uncollectible account before adjustment) $700
Credit sales during 2014 $30000
Cash sales during 2014 $14000
Collection for customers on account during 2014 $51000
If uncollectible acccounts are determined by the pecentage of sales methods to be 4% of the credit sales. how much is uncollectible account expenses for 2014?
a. $ 560
b. $ 2120
c. $ 1560
d. $ 700
6. Which of the following are not included in “cash equivalents” ina typical balance sheet?
a. certain very low risk equity securities
b. foreign government securities
c. us government securities
d. time deposits
e. All of above
7. Net sales total $584000. Begining and ending account receivable are 46000 and 50000. calculate the days sales in receivables.
a. 30 days
8. All of the following are control for cash received over the counter expert
a. the cash drawer should open only when the sales cleark enters an amount on the keys.
b. the sales clerk must have access to the cash register tape.
c. a printed reciept must be given to the customer
d. the customer should be able to see the amounts entered in to the cash register
9. Rolling green tennis academy held investments in trading securities with a fir value of $ 40000 at dec 31 2014. these investments cost rolling green $ 33000 on jan 1, 2014. what is appropriate amount for rolling green to report for these investments on the den 31, 2014 balance sheet.
a. 7000 gain
d. cant be detrermined from the given data