Question details

Customers are overdue on their accounts, and by reporting how long the account
$ 20.00
________ provide(s) useful information to management by delineating which customers are current and which customers are overdue on their accounts, and by reporting how long the account has been outstanding. (Points : 20)
       Net realizable value of accounts receivable
       The allowance method
       The aged receivables report
       Interim financial statements


Question 2.2. ABC Company requires that all checks over $1000 be signed by two corporate officers. This required review of large checks by upper management is an internal control focusing on ________. (Points : 20)
       safeguarding assets
       promoting operational efficiency
       encouraging employees to follow company policy
       ensuring accurate and reliable accounting records


Question 3.3. The department within the company that has custody over cash receipts from customers may also be allowed to ________. (Points : 20)
       grant credit to customers
       receive remittance advices from customers
       post cash receipts to the general ledger
       make deposits into the bank


Question 4.4. Jeezy Inc. had a bank balance of $6,500 at the end of the month. They also had the following reconciling items:

Deposits in transit


Interest revenue earned on the account


Outstanding checks


Bank service charge


Bookkeeping error (check for $500 was recorded as $50)


NSF checks


What is the adjusted bank balance for Jeezy Inc.? (Points : 20)


Question 5.5. The special journal that an accounts receivable clerk would use most often would be the ________ journal. (Points : 20)

       cash disbursements
       cash receipts
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