ACCY 111 Chapter 7 Questions: Quiz!

15 Questions | By Mehleezah | Last updated: Mar 21, 2022 | Total Attempts: 395

Questions

Settings

Create your own Quiz

ACCY 111 Chapter 7 Questions: Quiz! - Quiz

Questions and Answers

1.

Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months.
- A.
  
  T
- B.
  
  F
2.

From a financial accounting perspective, the main purposes of a system of internal control are to improve the accuracy and reliability of accounting information and to safeguard assets.
- A.
  
  T
- B.
  
  F
3.

In a good system of internal control, the person who initiates a transaction should be allowed to effectively control the processing of the transaction through its final inclusion in the accounting records.
- A.
  
  T
- B.
  
  F
4.

Depending on the circumstances, the classification of a compensating balance may be either current or noncurrent, and the arrangement should be disclosed in the notes.
- A.
  
  T
- B.
  
  F
5.

The net method of accounting for cash discounts requires adjusting entries for discounts taken.
- A.
  
  T
- B.
  
  F
6.

Recognizing sales returns when they occur could result in an overstatement of income in the period of the related sale.
- A.
  
  T
- B.
  
  F
7.

The income statement approach to estimating bad debts requires an adjusting entry at the end of the period to reduce receivables to net realizable value.
- A.
  
  T
- B.
  
  F
8.

Using the balance sheet approach, bad debt expense is an indirect result of estimating the net realizable value of accounts receivable.
- A.
  
  T
- B.
  
  F
9.

Discounts on notes receivable are recognized as interest earned over the term of the related note.
- A.
  
  T
- B.
  
  F
10.

Unless specific sales criteria are met, the factoring of accounts receivable with recourse is accounted for as a loan.
- A.
  
  T
- B.
  
  F
11.

Securitization of receivables is a type of secured borrowing.
- A.
  
  T
- B.
  
  F
12.

The receivables turnover ratio provides a way for an analyst to assess the effectiveness of a company in managing its investment in receivables.
- A.
  
  T
- B.
  
  F
13.

In a bank reconciliation, adjustments to the bank balance could include adding deposits in transit and deducting bank service charges.
- A.
  
  T
- B.
  
  F
14.

In a bank reconciliation, adjustments to the book balance could include adding or subtracting company errors.
- A.
  
  T
- B.
  
  F
15.

The journal entry to record the replenishment of a petty cash fund includes a credit to the petty cash fund.
- A.
  
  T
- B.
  
  F

Related Topics

More Accounting Quizzes

Conceptual Framework Quiz Questions And Answers

Here is an interesting conceptual framework quiz that is designed to test your knowledge of this subject. The conceptual framework can be described as a written or visual representation of an expected relationship between...

Questions: 41 | Attempts: 82304 | Last updated: Mar 22, 2022

Sample Question
The purpose of the Conceptual Framework is:

To assist the International Accounting Standards Board to develop IFRS Standards.

To assist preparers of IFRS financial statements to develop consistent accounting policies when no IFRS Standard applies to a particular transaction or other event, or when a Standard allows a choice of accounting policy.

To assist all parties to understand and interpret IFRS Standards.

All of the above

A Quick Accounting Knowledge Quiz!

Are you ready for a quick account knowledge quiz? For a business to prosper, what they need most is funding which can come through investments, cash or selling their shares. What do you understand about these different types...

Questions: 8 | Attempts: 22533 | Last updated: Mar 22, 2022

Sample Question
What is stockholders' equity?

Sales of products or services

Owners' claims to resources

Resources owned

Costs of selling products or services

Amounts owed

Basic Accounting Quiz Questions And Answers

Here's an awesome 'Basic Accounting Quiz' for all the students studying accounts! Accounting is something that is existent in different companies and is essential to ensure that a business keeps on growing. The...

Questions: 10 | Attempts: 16680 | Last updated: Mar 24, 2022

Sample Question
Under the accrual method of accounting, expenses are recorded:

When they are paid.

When invoices for expense items are received.

When they are incurred.

None of the above