Question : Multiple Choice Questions 31.Which of the following statements not correct? A.In accounting, : 1220609

Multiple Choice Questions

31.Which of the following statements is not correct?  

A.In accounting, the term “cash” includes checks, money orders, and funds on deposit in a bank as well as currency and coins.

B.The cash register proof is used to enter the cash sales and sales tax in the journal.

C.In a well managed business, most bills are paid by cash.

D.The petty cash account balance is usually listed separately from the Cash account on the Balance Sheet.

32.Which of the following is not a reason why the book balance of cash may not agree with the balance on the bank statement?  

A.Deposit in transit

B.Outstanding checks

C.Service charges and other deductions

D.End of the month

33.Upon collection of the amount due on an interest-bearing promissory note from a customer, the accountant would debit Cash, credit Notes Receivable, and  

A.debit Interest Expense.

B.credit Interest Income.

C.credit Interest Expense.

D.debit Interest Income.

34.Most businesses use the petty cash fund to pay for  

A.small expenditures.

B.accounts payable.

C.internal expenses.

D.merchandise purchases.

35.Which of the following statements is correct?  

A.If a check is negotiable, it means that ownership cannot be transferred.

B.An endorsement is a written authorization that transfers ownership of a check.

C.A check is a written order signed by an authorized person, the drawee.

D.Most businesses make one monthly deposit of cash receipts in order to maintain better control over their cash.

36.The entry to replenish a petty cash fund includes  

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

B.a debit to Petty Cash Fund and a credit to Cash.

C.debits to various expense accounts and a credit to Petty Cash Fund.

D.debits to various expense accounts and a credit to Cash.

37.On April 1, Java Brewers created a petty cash fund starting with $100. On April 30, there was only $5 remaining in the petty cash box. The custodian of the fund presented the following vouchers to the company accountant: Supplies of $55 and Delivery Expenses of $40. The journal entry on April 30, to replenish the fund, would be:    

A.Option A.

B.Option B.

C.Option C.

D.Option D.

38.George’s Grocers keeps a $100 change fund in its cash register. The cash sales per the cash register tape on January 30 were $405. The cash count was $502. Identify the correct journal entry below to record the sales and cash overage (or shortage) for January 30.    

A.Option A.

B.Option B.

C.Option C.

D.Option D.

39.ABC Office Suppliers keeps a $200 change fund in its cash register. The cash sales per the cash register tape on May 30 were $700. The cash count was $908. Identify the correct journal entry below to record the sales and cash overage (or shortage) for May 30.    

A.Option A.

B.Option B.

C.Option C.

D.Option D.

40.On August 3, Marley’s Sporting Goods accepted a six-month promissory note from J. J. Brown, who owed $490 on account. (J. J. had needed more time to pay his balance.) The promissory note had an annual 10 percent interest rate. The journal entry on August 3 to record the transaction would be:    

A.Option A.

B.Option B.

C.Option C.

D.Option D.