1: A $100 petty cash fund has cash of $16 and receipts of $81. The journal entry to replenish the account would include a

a. Debit to Cash for $81.

b. Credit to Petty Cash for $84.

c. Debit to Cash Over and Short for $3.

d. Credit to Cash for $81.

2: In preparing its bank reconciliation for the month of April 2013, Flip, Inc. has available the following information.

Balance per bank statement, 4/30/13 $39,300

NSF check returned with 4/30/13 bank statement 470

Deposits in transit, 4/30/13 5,000

Outstanding checks, 4/30/13 5,200

Bank service charges for April 30

What should be the adjusted cash balance at April 30, 2013?

a. $38,630.

b. $38,800.

c. $39,010.

d. $39,100.

3: If a check correctly written and paid by the bank for $591 is incorrectly recorded on the company’s books for $519, the appropriate treatment on the bank reconciliation would be to

a. Deduct $72 from the book’s balance.

b. Add $72 to the book’s balance.

c. Deduct $72 from the bank’s balance.

d. Deduct $591 from the book’s balance.

4: Flip Company had net credit sales during the year of $1,200,000 and cost of goods sold of $720,000. The balance in accounts receivable at the beginning of the year was $180,000, and the end of the year it was $120,000. What was the accounts receivable turnover ratio?

a. 5.0

b. 6.7

c. 8.0

d. 10.0

5: The financial statements of Flip Manufacturing Company report net sales of $400,000 and accounts receivable of $80,000 and $40,000 at the beginning and end of the year, respectively. What is the average collection period for accounts receivable in days?

a. 40 days

b. 50 days

c. 54.7 days

d. 80 days

Answer rating: 100% (QA)

1 c Debit to Cash Ove... View the full answer