Which of the following items should be added to the book balance on a bank

reconciliation?
- Correction of understatement of accounts receivable due to error in
recording blah blah

Which of the following items should be deducted from the book balance on a
bank reconciliation?
- Correction of an overstatement of accounts receivable due to error in
recording blah blah

Deposits held as compensating balances

- None of these

If reconciling the bank balance with the book cash balance which of the ff would
not cause the bank balance shown in the bank statement to be lower than the
adjustment balance?
- Interest credited

Which is not a key element of internal control over cash receipts?

- Daily entry on a vouch register

Bank overdrafts generally should be

- Reported as current liability

Which of the following is not true?

- The petty cash account is debited

A cash over and short account

- Is debited when the petty cash fund proves out short

When preparing a bank reconciliation, bank debits are

- Deducted from the bank statement balance

Receivables from affiliates are classified as:

- Either as current or non current, depending on expectation of blah blah
one year
When allowance method of recognizing uncollectible account is used, the entry
to record the writeoff of a specific account would
- Decrease the a/r and increase the allowance for doubtful account

When the origination fees received is less than the direct origination cost
incurred, the difference is similar to
- Unearned?

All of the following are problems associated with valuation of accounts

receivable, except?
- Cash discounts under the net method

Which of the following is an advantage of using the net price method for
recording the cash and the cash discount on credit sales?
- It properly reflects the current period sales blah blah

Determine the true statements regarding factoring of accounts receivable without

recourse
- The factor assumes the risk of collectability eme

If there is an evidence that an impairment loss on loan receivable has been

incurred, the loss is equal to the
- Excess of the carrying amount of the loan receivable blah

Which of the following is not recorded as accounts receivable

- Dishonored customer notes

Notes or accounts receivable from officers, employees or affiliated companies

should be reported in the statement of financial position as?
- Current assets 12 mo

Which is the effect in accounts receivable if credit sales are not recorded in
accounting books during the current year?
- under

Which of the following statements is incorrect regarding the lcnrv?

- In most situation, entities blah
Net realizable value is the general rule for vale, which of the following types of
inventory?
- commodities

Entities must allocate the cost of goods available for sale between?
- The income statement

Which of the following costs are included in the cost of inventory?

- cost related to merchandise inventory

Cost incurred in bringing the inventory to the present location and condition
include
- Cost of designing

Freight and other handling charges incurred in the transfer of goods from the
consignor to the consignee are
- Inventoriable by the consignor

Current loss on purchase commitment would be recognized or appropriate under

which of the following conditions
- Commitment cannot be cancelled

Which of the following is correct regarding the LCNRV

- III only

If the ending inventory is overstated, which is its effect in current year’s cost of
sales and net income
- Cost of sales under

Which of the following statements is not correct?

- When units are identical

Question 5. 2,626,011
Question 6. 930,574.72
Question 7. 911,711 +2.5M
Question 8. 6,040
Question 9. 8,362,000
Question 10. 14000