Question :
Multiple Choice Questions
At the end of the month the unadjusted : 1229776
Multiple Choice Questions
At the end of the month the unadjusted trial balance of Four Star Company included the following accounts:
206. If the income statement method of estimating uncollectible accounts expense is followed, and uncollectible accounts expense is estimated to be 2% of net credit sales, the net realizable value of Four Star accounts receivable at the end of the month is:
A. $855,800.
B. $845,050.
C. $19,200.
D. $1,250,050.
207. If Four Star uses the balance sheet approach in estimating uncollectible accounts, and aging the accounts receivable indicates the estimated uncollectible portion to be $24,000, the uncollectible accounts expense for the month is:
A. $24,000.
B. $13,250.
C. $34,750.
D. $10,750.
208. Which of the following items is reported in neither the income statement nor the statement of cash flows?
A. Sale of marketable securities at a loss.
B. Sale of marketable securities at a gain.
C. Adjustment of available-for-sale marketable securities owned to current market value at balance sheet date.
D. Investment of excess cash in marketable securities.
209. Mark-to-market is the balance sheet valuation standard for:
A. Investments in all financial assets.
B. Investments in available-for-sale marketable securities.
C. Investments in capital stock of any corporation.
D. Stockholders’ equity of any publicly traded corporation.
210. Cash equivalents:
A. Include amounts of cash available through an unused line of credit.
B. Are investments in the publicly traded stocks and bonds of large corporations.
C. Are usually included in the term “cash” in the balance sheet and the statement of cash flows.
D. Is another term for financial assets.
Shown below is a partially completed bank reconciliation for Hubbard Transport at August 31, as well as additional data necessary to answer the questions that follow.
Additional information
a. Outstanding checks: no. 729, $1,253; no. 747, $245; no. 752, $781.
b. Check no. 742 (for repairs) was written for $398 but erroneously recorded in Hubbard’s records as $839.
c. Deposits in transit, $2,254.
d. Note collected by the bank and credited to Hubbard’s account, $4,800.
e. NSF check of C. Craig, one of Hubbard’s customers, $1,525.
f. Bank service charge for August, $35.
211. In Hubbard’s completed bank reconciliation at August 31, what dollar amount should be deducted from the balance per bank statement (indicated by 2 above)?
A. $2,254.
B. $2,279.
C. $1,525.
D. $4,800.
212. In Hubbard’s completed bank reconciliation at August 31, what dollar amount should be added to the balance per depositor’s records (indicated by 3 above)?
A. $4,800.
B. $2,254.
C. $5,241.
D. $6,766.
213. In Hubbard’s completed bank reconciliation at August 31, what dollar amount should be deducted from the balance per depositor’s records (indicated by 4 above)?
A. $2,254.
B. $2,001.
C. $1,525.
D. $1,560.
214. Hubbard Transport keeps $500 cash on hand in addition to this checking account and has no other bank accounts or cash equivalents. What amount should appear as Cash in Emerald’s August 31 balance sheet?
A. $18,430.
B. $14,249.
C. $17,955.
D. Some other amount.
215. The necessary adjustment to Hubbard Transport’s accounting records as of August 31 includes a net:
A. Increase to Cash of $5,241.
B. Increase to Cash of $3,240.
C. Increase to Cash of $3,681.
D. Decrease to Cash of $35.
