In reconciling a bank statement, the bank statement balance is 1,000 and the balance per books is 1,205 . A bank service charge is 5; a deposit in transit totals 500; and outstanding checks total 300 . The journal entry for a bank service charge would include
a. debiting Cash and crediting Miscellaneous Expense.
b. debiting Cash and crediting Owner's Capital.
c. debiting Accounts Payable and crediting Cash.
d. debiting Miscellaneous Expense and crediting Cash.
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Q. 2) The four financial statements used to report a company's financial condition include ________.
A) balance sheet, income statement, statement of changes in shareholders' equity, and statement of cash flows
B) changes in balance sheet, statement of flows, statement of changes in balances, and statement of cash flows
C) balance sheet, statement of earnings, statement of changes in shareholders' equity, and statement of budgets
D) income sheet, balance of earnings, statement of changes in shareholders' equity, and statement of cash flows
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Q. 3) Who is responsible for the freight cost when the terms are FOB destination?
a. the seller
b. the buyer
c. the customer
d. either the buyer or the seller
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Q. 4) The accountant found that four outstanding checks worth a total of 990 were not on the bank statement. On the bank reconciliation, this amount should be ________.
A) added to the balance per books
B) deducted from the balance per books
C) added to the balance per bank statement
D) deducted from the balance per bank statement
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Q. 5) This component of the ERM framework that encompasses the tone of an organization and sets the basis for how risk is viewed and addressed by an entity's people, including risk management philosophy and risk appetite, integrity and ethical values and the environment in which they operate.
a. control activities
b. internal environment
c. risk assessment
d. risk response
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Q. 6) A single-step income statement ________.
A) is the preferred method of reporting revenues, expenses, and cash because of the ease of preparation
B) groups all revenues together and shows all expenses deducted from total revenue
C) includes the subtotal Gross profit in the presentation
D) is preferred by business owners because the information presented is timely, and thus useful
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