Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Acct 229 > Final > Flashcards

Final Flashcards

1
Q

What would the controller look at to see the amount of cash that went into the bank, and who would provide him with the back up?

A

He would look at the bank deposit amount from the treasurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What would the controller look at to see what was recorded by the company and who would provide him with the data?

A

A debit to cash from the accounting department

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do companies do to avoid internal control weakness?

A

Separate the duties of purchasing goods, receiving goods, approving payments for goods.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is internal control?

A

The organizational plan and all related measures designed to encourage employees to follow company policy, promote operational efficiency, safeguard assets, and ensure accurate and reliable accounting records.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What requires the system of internal controls to be tested by external auditors?

A

The Sarbanes-Oxley Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

If cash received over the counter is controlled by a sales clerk who rings up the sale and places the cash in the register, should the sales clerk also match the total recorded by the register to each day as cash sales?

A

No, the sales clerk should not have access to the cash register total as the clerk could change the record

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

How should a petty cash account be maintained?

A

At its designated balance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Petty cash accounts are part of what type of system?

A

Imprest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

At any point in time a petty cash box must contain

A

Cash and petty cash tickets that total the amount of the imprest balance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do you calculate percentage of total value?

A

Asset Market value ÷ total market value ×100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How do you calculate depreciation using the straight-line method?

A

(Cost - sign residual value) ÷ useful life (in years)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How do you calculate depreciation per unit using unit per production?

A

(Cost – residual value) ×(current year production ÷ total estimated production)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How do you calculate depreciation expense using units of production method?

A

The depreciation per unit × current year usage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How do you calculate depreciation using double declining balance method?

A

(Cost – accumulated depreciation) ×2×(1÷ useful life)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Two or more people working together to circumvent internal controls and defraud a company

A

Collusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What 3 things must a petty cash account have?

A

Custodian
Designate specific amount to be kept
Support all payments with a ticket

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

When is a petty cash account created?

A

When the company writes a check for the designated amount, payable to petty cash

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

At any point in time the petty cash box contains cash and tickets that total amount of the imprest balance.

A

Imprest system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A document explaining reasons for the difference between a depositors cash records and the depositors cash balance in its bank account

A

Bank reconciliation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the two records of a business’s cash?

A

Cash account in the ledger

Bank statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Explain the bank side of bank reconciliation

A

Deposits in transit
Outstanding checks
Bank errors

22
Q

Explain the book side of bank reconciliation

A 
Bank collections
Electronic funds transfers
Service charge
Interest revenue on a checking account 
NSF checks
Book errors
23
Q

Assets of a permanent nature used in the operations of the business and not held as inventory

A

Plant asset

24
Q

Characteristics of account receivables

A

Source is pre established credit
No grace period
No collateral

25
Q

Characters of notes receivables

A

Source is promissory note (contract)

Has interest and collateral

26
Q

What is a bad debt expense?

A

Uncollected accounts receivable

27
Q

What are the two approaches for accounting for bad debt?

A

Direct write off method and allowance method

28
Q

We must use allowance method because

A

GAAP says it satisfies matching principle

29
Q

Allowance for bad debt

A

Contra account to accounts receivables

30
Q

What cost to include as the cost of a plant asset?

A

All cost necessary to acquire and prepare the plant asset for intended use

31
Q

Cost included as cost of

A

Land, bldg, equip, and land improvements

32
Q

When do you account for P,P,&E?

A

When acquired
Depreciation
Disposal

33
Q

Name some plant assets

A 
Bldg
Land
Office equipment 
Machinery/heavy equipment 
Furniture
Transportation vehicles 
Signage
Parking lot 
Special utilities
34
Q

Raze

A

Remove

35
Q

Land costs

A 
Purchase price
Settlement cost
Remove old structure 
Grading 
Clearing 
Delinquent property tax
36
Q

Costs of equipment

A

Purchase price
Transportation costs
Installation cost
Modification cost

37
Q

Costs of new construction

A

Contract price

Construction period interest

38
Q

Three ways to dispose of a plant asset

A

Abandon
Sell
Exchange

39
Q

Total market value =

A

Asset market value + asset market value

40
Q

Percentage of total value =

A

Asset market value/ total market value

41
Q

Net book value =

A

Assets cost - accumulated depreciation

42
Q

A net book value should never

A

Fall below the residual value

43
Q

The expected value of an asset at the end of its useful life

A

Residual value

44
Q

Accounting for payroll involves

A

Employee gross earnings
With holdings from gross earnings
Employer payroll taxes

45
Q

What earnings are taxable to employee

A

Salary
Hourly wage
Commission
Bonuses

46
Q

What earnings aren’t taxable to the employee

A

Health, dental, employer paid retirement plan

47
Q

Social security max

A

128700

48
Q

Only__________ pays unemployment tax.

A

Employers

49
Q

Only _____________ pay federal income tax.

A

Employees

50
Q

Sales tax payable is a current liability because

A

The retailer must pay the state in less than a year

51
Q

Sale tax is _____ an expense of a business. It is a _______ _______.

A

Not

Current liability

Acct 229 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions