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

$2,300

Interest revenue earned on the account

$12

Outstanding checks

$1,400

Bank service charge

$25

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

$450

NSF checks

$150


What is the adjusted bank balance for Jeezy Inc.? (Points : 20)
       $5,887
       $6,800
       $8,200
       $7,400

 

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

       general
       sales
       cash disbursements
       cash receipts
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