The five components to a system of internal controls include all of the following except:

Group of answer choices

control procedure

risk assessment

safeguarding assets

monitoring controls

Which of the following represents the safeguarding of assets?

Group of answer choices

placing small, high-priced items in a locked display case

reducing payroll expenses to increase net income

purchasing rather than leasing company vehicles

allowing the company president to handle cash

Which account would we credit to open a new petty cash fund?

Group of answer choices

cash

petty cash

miscellaneous expense

petty cash expense

Our company established a petty cash fund with a balance of $200. We have petty cash receipts for travel expenses that total $125. We have counted petty cash and found that we were $2 short. Which of the following would be included in the entry to replenish the fund?

Group of answer choices

a credit to cash for $127

a credit to travel expenses for $125

a credit to cash over and short for $2

a credit to cash for $125

We deposited $200, but the bank mistakenly recorded the transaction as $2,000. How would this error be included on the bank reconciliation?

Group of answer choices

as a deduction on the bank side

as an addition on the book side

as an addition on the bank side

as a deduction on the book sideOur company received a bank statement with a balance of $10,000. The reconciling items include outstanding checks that totaled $2,000 and a deposit in transit of $1,000. What is the adjusted bank balance after we complete the bank reconciliation?

Group of answer choices

$7,000

$9,000

$11,000

$13,000

Our company has decided to write off an uncollectible account of $3,000. What account would we debit to record bad debt expense if our company uses the direct write-off method for bad debts?

Group of answer choices

bad debt expense

accounts receivable

allowance for doubtful accounts

cash

Our company reports net accounts receivable of $200,000 on our December 31, 2017 balance sheet. We have a credit balance of $25,000 in allowance for doubtful accounts. What is the balance in accounts receivable?

Group of answer choices

$175,000

$200,000

$225,000

$250,000

At the end of 2018, we have a debit balance of $10,000 in allowance for doubtful accounts before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable using the aging of receivables method, the company's management estimates that uncollectible accounts will be $30,000. What will be the amount of bad debts expense reported on the income statement?

Group of answer choices

$10,000

$20,000

$30,000

$40,000

On July 1, 2017, our company accepts a 9-month 5% note for $12,000. What account and amount would we creditwhen we record the year-end adjusting entry on December 31, 2017?

Group of answer choices

interest revenue, $300

interest revenue, $350

interest receivable, $300

interest receivable, $350