question what are the two main functions of cash control systems control over receip 4282110
Question
What are the two main functions of cash control systems?
Control over receipts and control over payments
Control over cash and control over purchase orders
Control over checks and control over invoicing
Control over receipts and control over the bank account
When aging of accounts receivable is used, each age group is multiplied by its own estimated uncollectible percentage to determine each age group's estimated uncollectible amount. The sum of the amounts thus determined is the
required ending balance for the allowance for doubtful accounts.
amount that should be written off as uncollectible for the year.
increase to the existing credit balance in the allowance for doubtful accounts.
amount of bad debt expense for the year.
When an uncollectible account is written off under the allowance method, the effect of the write-off is to
decrease net income.
increase the accounts receivable net realizable value.
leave total assets unchanged.
increase working capital.
Which method for estimating uncollectible accounts receivable is considered to be balance-sheet oriented?
Aging of accounts receivable method
Direct write-off method
Percentage of net sales method
Gross receivables method
Which of the following is an advantage of using the net price method for recording cash discounts on credit sales?
It simplifies recording of sales returns and allowances.
It eases communication with customers about their balances.
It conservatively reflects current period sales revenue.
It requires less record keeping than the gross method.
Which is not a key element of internal control over cash receipts?
daily bank deposits
daily entry in a voucher register
immediate counting by the person opening the mail or using the cash register
daily recording of all cash receipts in the accounting records
Which method for estimating uncollectible accounts receivable is considered to be income-statement oriented?
percentage of outstanding accounts receivable method
percentage of net sales method
Direct write-off method
aging of accounts receivable method
A disadvantage of basing bad debt expense on the historical relationship between actual bad debts and the outstanding accounts receivable balance at the end of the year is that
it may not result in a reasonable estimate of the net realizable value of receivables.
it is an income statement approach.
it is not a generally accepted accounting procedure.
it may not recognize the cause and effect relationship between expenses and revenues.
Joan Bell, Inc. uses the bank reconciliation form that arrives at a corrected cash balance. Bank service charges will be
deducted from the bank balance.
deducted from the book balance.
added to the bank balance.
added to the book balance.
On October 1, Robins's Online Sales sold goods for $50,000 and accepted a six-month noninterest-bearing note. Current interest rates were 10%. The December 31 adjusting entry should be
Discount on Notes Receivable 1,250
Interest Revenue 1,250
Interest Receivable 2,500
Interest Revenue 2,500
Discount on Notes Receivable 2,500
Interest Receivable 2,500
Interest Revenue 1,250
Discount on Notes Receivable 1,250
Hole Sailors, Inc. sold merchandise on credit with a list price of $12,000. Terms were 1/20, n/45. Which of the following entries correctly applies the indicated method to record the sale?
Gross Price Method
Accounts Receivable 12,000
Sales 12,000
Net Price Method
Accounts Receivable 12,000
Sales 12,000
Net Price Method
Accounts Receivable 10,800
Sales 10,800
Net Price Method
Accounts Receivable 11,400
Sales 11,400
When pledging accounts receivable
title to the receivables reverts to the lender.
collection responsibility reverts to the lender.
the pledge arrangements become the new valuation methodology entered in the accounting records.
the pledges are usually made with recourse.
|
|
a. |
Control over receipts and control over payments |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
b. |
Control over cash and control over purchase orders |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
c. |
Control over checks and control over invoicing |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
d. |
Control over receipts and control over the bank account When aging of accounts receivable is used, each age group is multiplied by its own estimated uncollectible percentage to determine each age group's estimated uncollectible amount. The sum of the amounts thus determined is the
|