7. Larry drops off ry drops off a deposit in the night deposit box of Uberty Bank. Afterwards, Larry records the deposit in his This is an example of a a. Not-sufficient fund b. Outstanding check c. Deposit in transit d. Overdraft checking account. At this time, the deposit does not show in his bank account. How often do businesses normally receive bank statements? a. Weekly b. Monthly c. Semi-annually d. Annually What department is independent of all other departments in a corporation? a. Mailroom b. Controller c. Treasurer d. Internal Audit 8. 9. 10. Which of the following would not be considered part of cash and cash equivalents? 60 day Certificate of Deposit a. b. Petty cash c. Postdated check d. Money market funds 11. Liberty Corporation decides to begin extending credit to customers with lower credit scores. What will Iikely occur with their bad debt expense? a. Bad debt expense will decrease b. Bad debt expense will increase c. Bad debt will not be impacted 12. Topper Corporation uses the allowance method to estimate bad debt expense and allowance for doubtful accounts. During 2018, Topper received notice that one of its customers Cardinal had filed bankruptcy. What journal entry should Topper make to eliminate the receivable? a. Debit bad debt expense b. Debit Allowance for doubtful accounts c. Debit accounts receivable d. Credit bad debt expense 13. The allowance for doubtful accounts a. b. c. d. Normally has a credit balance Must equal zero at year end Is an exact number (not an estimate) Is not a real account