The cash account in the company's ledger is a(n)
a. asset with a normal debit balance
b. asset with a normal credit balance
c. liability with a normal debit balance
d. liability with a normal credit balance
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Q. 2) Cartier, Inc's corporate charter allows it to sell 1 million shares of 0.50 par value common stock. As of December 31, 2011, the company had sold 500,000 shares for 4 each. Cartier has 20,000 shares of treasury stock that cost 100,000.
On the December 31, 2011 balance sheet, the number of shares authorized is ________ shares.
A) 1,000,000
B) 500,000
C) 480,000
D) 400,000
(
Q. 3) _____________________________
_ is a policy of requiring an employee to take leave from the job and substituting another employee in his or her place.
Fill in the blank(s) with correct word
(
Q. 4) Brooke's Bike Company sold 225 mountain bikes in October. The future estimated warranty cost for the bikes is 25 per bike. The warranty period is one year. The amount of warranty expense for October is 468.75
Indicate whether the statement is true or false
(
Q. 5) To a seller, cash discounts are considered the same as sales discounts.
a. True
b. False
Indicate whether the statement is true or false
(
Q. 6) Which of the following should notbe considered cash by an accountant?
a. money orders
b. bank checking accounts
c. postage stamps
d. travelers' checks
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