Reference no: EM131766917

Question 1
Each disbursement from the petty cash fund should be supported by a petty cash voucher.
True
False

Question 2
It is impossible to construct a foolproof system of internal control.
True
False

Question 3
One of the easiest ways to help achieve internal control is to divide the cash receipts process among several persons.
True
False

Question 4
Which of the following items appears on a bank statement?
A. Deposits in transit
B. Bank service charges
C. Outstanding checks
D. All of the above answers appear on a bank statement

Question 5
The functions of handling cash receipts and cash disbursements should be completely separated, if possible.
True
False

Question 6
Sales rung on the cash register equaled $980.50. Cash in the drawer totaled $975.00. What entry correctly records this day's sales?

Question 7

Sales rung on the cash register equaled $2,269.60. Cash in the drawer totaled $2,271.60. Which entry correctly records this day's sales?

Question 8

Deposits in transit will appear as additions to the company's balance at the bank on the next bank statement.
True
False

Question 9
A company should require that at least two signatures appear on each check.
True
False

Question 10
Management tries to have "just the right amount" of cash available (within a certain range).
True
False

Question 11
The creation of a petty cash fund requires a journal entry to reflect the transfer of funds out of the general Cash account.
True
False

Question 12
A bank statement represents a report prepared by an outside entity that aids the company's efforts in cash control.
True
False

Question 13
Employees should be rotated in their job assignments when possible.
True
False

Question 14
The service potential of a machine could be measured in terms of:
A. hours of operation.
B. years of asset life.
C. units produced.
D. All of the above answers are correct.

Question 15
Depreciation is generally caused by:
A. inadequacy.
B. obsolescence.
C. physical deterioration.
D. All of the above answers are correct.

Question 16
The costs of land and land improvements should be recorded in the same account.
True
False

Question 17
The difference between "tangible" assets and "intangible" assets is primarily one of size and value.
True
False

Question 18
An estimate of salvage value is not needed to compute depreciation in the first year by which of the following methods?
A. Units-of-output
B. Double-declining balance
C. Sum-of-the-years'-digits
D. Straight-line

Question 19
Besides recording the acquisition of a plant asset, entries must be made to record:
A. depreciation.
B. subsequent expenditures.
C. disposal.
D. All of the above answers are correct.

Question 20
When land and buildings are purchased together, the total cost of the purchase should be divided between the two types of plant assets based on their respective appraised values.
True
False

Question 21
Under the double-declining balance method, the annual depreciation charge is computed by multiplying the book value of the asset at the beginning of the year by a fixed percentage.
True
False

Question 22
With a fairly constant output expected, the use of which of the following depreciation methods will yield the largest amount of depreciation expense for the first year of a machine's life?
A. Double-declining balance
B. Units-of-output
C. Straight-line
D. Sum-of-the-years'-digits

Question 23
If depreciation is basically a function of the length of time that an asset is owned, it should be recorded using the:
A. sum-of-the-years'-digits method.
B. double-declining-balance method.
C. straight-line method.
D. units-of-output method.

Question 24
Capital expenditures increase the net book value of the plant asset.
True
False

Question 25
Factors that affect the amount of depreciation expense when using the units-of-production method include the:
A. book value.
B. estimated salvage value.
C. list price when new.
D. fair market value.

Question 26

In The Profit's Planet Popcorn Video clip, Marcus hopes to grow Planet Popcorn to $10 million in annual revenue.
True
False

Question 27

In The Profit's Planet Popcorn Video clip, how much did Planet Popcorn make last year in net income per Marcus' accountant?
$319,000
$350,000
$2.5 million
$400,000

Question 28

In The Profit's Planet Popcorn Video clip, which business line at Planet Popcorn has the highest gross profit?
Popcorn
Crepes
Funnel Cakes
Soda

Question 29

In The Profit's Planet Popcorn Video clip, just by changing the packaging from a bag to a tin, Planet Popcorn expects to earn an additional $9 in revenue.
True
False

Question 30

In The Profit's Planet Popcorn Video clip, how much does Planet Popcorn make on a cart per day at Disney on average?
$2000
$1300
$685
$400