Question : 101. The entry necessary to establish a petty cash fund should : 1225912

Accounting

101. The entry necessary to establish a petty cash fund should include:

A. A debit to Cash and a credit to Petty Cash.

B. A debit to Cash and a credit to Cash Over and Short.

C. A debit to Petty Cash and a credit to Cash.

D. A debit to Petty Cash and a credit to Accounts Receivable.

E. A debit to Cash and a credit to Petty Cash Over and Short.

102. The entry to record reimbursement of the petty cash fund for postage expense should include:

A. A debit to Postage Expense.

B. A debit to Petty Cash.

C. A debit to Cash.

D. A debit to Cash Short and Over.

E. A debit to Supplies.

103. When a petty cash fund is in use:

A. Expenses paid with petty cash are recorded when the fund is replenished.

B. Petty Cash is debited when funds are replenished.

C. Petty Cash is credited when funds are replenished.

D. Expenses are not recorded.

E. Cash is debited when funds are replenished.

104. In reimbursing the petty cash fund:

A. Cash is debited.

B. Petty Cash is credited.

C. Petty Cash is debited.

D. Appropriate expense accounts are debited.

E. No expenses are recorded.

105. Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

A. A debit to Cash for $377.50.

B. A credit to Cash Over and Short for $5.00.

C. A debit to Petty Cash for $382.50.

D. A credit to Cash for $387.50.

E. A debit to Cash for $387.50.

106. A company plans to decrease a $200 petty cash fund to $75. The current balance in the account includes $45 petty cash payment in receipts and $165 in currency. The entry to reduce the fund will include a:

A. Debit to Cash Short and Over for $10.

B. Debit to Cash for $90.

C. Debit to Miscellaneous Expenses for $35.

D. Credit to Petty Cash for $165.

E. Credit to Cash for $90.

107. A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:

A. Debit Cash Over and Short for $43.

B. Credit Cash Over and Short for $43.

C. Debit Petty Cash for $43.

D. Credit Petty Cash for $43.

E. Credit Cash for $43.

108. Martha Company has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:

If, in addition to these receipts, the petty cash fund contains $301 of cash, the journal entry to reimburse the fund on December 31 will include:

A. A debit to Transportation-In of $73.

B. A debit to Transportation-Out of $73.

C. A credit to Office Supplies of $66.

D. A credit to Cash Over and Short of $10.

E. A debit to Cash Over and Short of $10.

109. An analysis that explains any differences between the checking account balance according to the depositor’s records and the balance reported on the bank statement is a(n):

A. Internal audit.

B. Bank reconciliation.

C. Bank audit.

D. Trial reconciliation.

E. Analysis of debits and credits.

110. On a bank reconciliation, an unrecorded debit memorandum for printing checks is:

A. Noted as a memorandum only.

B. Added to the book balance of cash.

C. Deducted from the book balance of cash.

D. Added to the bank balance of cash.

E. Deducted from the bank balance of cash.

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July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.