Question : 81.A remittance advice a(n): A.Explanation for a payment by check. B.Bank statement. C.Internal : 1236993

81.A remittance advice is a(n):   

A.Explanation for a payment by check.

B.Bank statement.

C.Internal voucher.

D.Electronic funds transfer.

E.Cancelled check.

82.A bank statement provided by the bank includes:   

A.A list of outstanding checks.

B.A list of petty cash amounts.

C.The beginning and the ending balance of the depositor’s account.

D.A listing of deposits in transit.

E.A reconciliation to the depositor cash account.

83.A bank does not issue a debit memorandum to notify the depositor of which of the following?   

A.All withdrawals through an ATM.

B.A fee assessed to the depositor’s account.

C.An uncollectible check.

D.Periodic payments arranged in advance, by a depositor.

E.A deposit to their account.

84.Preparing a bank reconciliation on a monthly basis is an example of:   

A.Establishing responsibility.

B.Separation of duties.

C.Protecting assets by proving the accuracy of cash records.

D.A technological control.

E.Poor internal control.

85.The number of days’ sales uncollected:   

A.Is used to evaluate the liquidity of receivables.

B.Is calculated by dividing accounts receivable by sales.

C.Measures a company’s ability to pay its bills on time.

D.Measures a company’s debt to income.

E.Is calculated by dividing sales by accounts receivable.

86.The days’ sales uncollected ratio is used to:   

A.Measure how many days of sales remain until the end of the year.

B.Determine the number of days that have passed without collecting on accounts receivable.

C.Identify the likelihood of collecting sales on account.

D.Estimate how much time is likely to pass before the current amount of accounts receivable is received in cash.

E.Measure the amount of cash sales during a period.

87.The number of days’ sales uncollected is calculated by:   

A.Dividing accounts receivable by net sales.

B.Dividing accounts receivable by net sales and multiplying by 365.

C.Dividing net sales by accounts receivable.

D.Dividing net sales by accounts receivable and multiplying by 365.

E.Multiplying net sales by accounts receivable and dividing by 365.

88.All of the following are true of the number of days’ sales uncollected ratio except:   

A.Is most effective in evaluating the cash sales of a company.

B.Can be used for comparisons to other companies in the same industry.

C.Can be used for comparisons between current and prior periods.

D.Reflects the liquidity of receivables.

E.Measures how much time is likely to pass before the current amount of accounts receivable is received in cash.

89.A company had net sales of $21,500 and ending accounts receivable of $2,700 for the current period. Its days’ sales uncollected equals:   

A.8.0 days.

B.58.9 days.

C.45.8 days.

D.7.4 days.

E.45.2 days.

90.Freeman Co. had net sales of $4.2 million and ending accounts receivable of $0.8 million. Its days’ sales uncollected equals:   

A.5.3 days.

B.69.5 days.

C.19.2 days.

D.11.5 days.

E.292 days.