Week 6 Quiz, Ch 7 & 8

GAAP, compared to IFRS, tends to be more

Postage stamps on hand are considered to be

GAAP’s, accounting and internal control procedures related to cash and the definition of cash equivalents, as compared to IFRS are:

Two individuals at a retail store work the same cash register. You evaluate this situation as

An adjusting entry is not required for

All of the following requirements about internal controls were enacted under the Sarbanes- Oxley Act except;

Internal control is defined, in part, as a plan that safeguards

Schwartzman Co., makes a credit card sale to a customer for $600. The credit card sale has a grace period of 30 days and then an interest charge of 1.5% per month is added to the balance. If the unpaid balance on the above sale is $480 at the end of the grace period, the interest charge is

Claims for which formal instruments of credit are issued as proof of the debt are

The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts

The method of accounting for uncollectible accounts that results in a better matching of expenses with revenues is the

Using the following information:

During 2013, sales on account were $145,000 and collections on account were $100,000. Also during 2013, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000.

The change in the cash realizable value from the balance at 12/31/12 to 12/31/13 was a

Using the following information:

During 2013, sales on account were $145,000 and collections on account were $100,000. Also during 2013, the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that uncollectible accounts should be estimated at $40,000.

Bad debts expense for 2013 is

On January 15, 2012, Craig Company received a two-month, 9%, $7,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on March 15, 2012 if Pentel dishonors the note and collection is expected is:

Under the direct write-off method of accounting for uncollectible accounts, Bad Debts Expense is debited