Team Shirts ordered T-shirts from its supplier in June. The T-shirts were delivered in July. Team Shirts paid the bill in August and sold the T-shirts in September. When should Team Shirts recognize an expense using cash-basis accounting?
A) June
B) September
C) August
D) July
(
Q. 2) Assuring that cash collections recorded in the cash receipts event data are credited to the right customer in the accounts receivable master data addresses the control goal of:
a. ensure input accuracy
b. ensure input completeness
c. ensure update accuracy
d. ensure update completeness
(
Q. 3) If the terms of purchase are FOB destination, title to the goods passes from the vendor to the buyer ________.
A) when the merchandise leaves the vendor's warehouse
B) halfway between the vendor's warehouse and the buyer's warehouse
C) when the merchandise reaches the buyer's warehouse
D) when the merchandise is sold to the end user
(
Q. 4) ____________________ are checks that have been issued during the period, but have not been presented to the bank for payment before the bank statement is prepared.
Fill in the blank(s) with correct word
(
Q. 5) Poe, Inc. made 7,000 of cash sales to customers. The effect of this transaction on the accounting equation is:
A) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect Increse No effect
B) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Decrease No effect No effect Decrease
C) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
No effect Decrease No effect Increase
D) Total shareholders' equity
Total assets Total liabilities Contributed capital Retained earnings
Increase No effect No effect Increase
(
Q. 6) Bountiful Company had sales of 650,000 and cost of merchandise sold of 200,000 during the year. The total assets balance at the beginning of the year was 175,000 and at the end of the year was 167,000 . Calculate the ratio of sales to total assets.
a. 3.00
b. 3.80
c. 0.29
d. 0.26
Quick Reply
