Question : 111. In comparing the canceled checks the bank statement with the : 1256890

 

 

111. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December’s utilities was correctly written and drawn for $790 but was erroneously entered in the accounting records as $970. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation? 

A. $180 decrease to Cash and a $180 decrease to Utility Expense.

B. $180 increase to Cash and a $180 decrease to Utility Expense.

C. $20 decrease to Cash and a $20 decrease to Utility Expense.

D. $20 increase to Cash and a $120 decrease to Utility Expense.

E. $970 increase to Cash.

 

 

112. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December’s utilities was correctly written and drawn for $970 but was erroneously entered in the accounting records as $790. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation? 

A. $180 decrease to Cash and a $180 decrease to Utility Expense.

B. $180 increase to Cash and a $180 increase to Utility Expense.

C. $180 decrease to Cash and a $180 increase to Utility Expense.

D. $180 increase to Cash and a $120 decrease to Utility Expense.

E. $970 increase to Cash and a $790 decrease to Utility Expense.

 

 

113. A seller of goods or services, which is usually a manufacturer or wholesaler, is known as a: 

A. Vendor

B. Payee

C. Vendee

D. Creditor

E. Debtor

 

 

114. The internal document prepared by a department manager that informs the purchasing department of its needs is the:

A. Purchase requisition

B. Purchase order

C. Invoice

D. Receiving report

E. Invoice approval

 

 

115. The document that the purchasing department prepares and sends to the vendor to place an order is the: 

A. Purchase requisition

B. Purchase order

C. Invoice

D. Receiving report

E. Invoice approval

 

 

116. The document that is an itemized statement of goods prepared by a vendor listing the customer’s name, items sold, sales prices, and terms of the sale is the: 

A. Purchase requisition

B. Purchase order

C. Invoice

D. Receiving report

E. Invoice approval

 

 

117. The internal document that is prepared to notify the appropriate persons that ordered goods have been received and describes the quantities and condition of the goods is the 

A. Purchase requisition

B. Purchase order

C. Invoice

D. Receiving report

E. Invoice approval

 

 

118. The document, also known as the check authorization, that is a checklist of steps necessary for approving an invoice for approval and payments is the: 

A. Purchase requisition

B. Purchase order

C. Invoice

D. Receiving report

E. Invoice approval

 

 

119. Which of the following statements is true regarding the documents in a voucher system? 

A. All voucher systems are the same.

B. Recording a purchase is initiated by an invoice approval.

C. A well-designed voucher system will allow department managers to place orders directly with suppliers for control purposes.

D. A voucher system is most commonly used in very small companies to make up for the lack of other internal controls.

E. A well designed voucher system will eliminate all fraud and error.

 

 

 

120. Triple Company’s accountant made an entry that included the following items: debit postage expense $12.42, debit office supplies expense $27.33, credit cash over/short $2.19. If the original amount in petty cash is $320, how much was the credit to cash for the reimbursement?  

A. $320.00

B. $202.44

C. $37.56

D. $39.75

E. $41.94