ACCO20053 Intermediate Accounting 1
- Mock Midterm Exams
Total points 49/65
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clarizakristine27@gmail.com
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Name (SURNAME, FIRST NAME, MIDDLE INITIAL) *
CLARIZA, KRISTINE NICOLE B.
Theories
The objective of establishing a petty cash fund is to *
Account for cash sales
Facilitate payment for small, miscellaneous items
Account for all cash receipts and disbursements
Cash checks for employees
20 of 30 points
1/1
What is the effect of not replenishing the petty cash at year end and not 1/1
making the appropriate adjusting entry? *
Cash will be overstated and expenses understated
The petty cash custodian should turn over the petty cash to the general cashier
Expenses will be overstated and cash will be understated
A detailed audit is essential
In reimbursing the petty cash fund, which of the following statements is 1/1
true? *
Cash is debited
Petty cash is debited
Petty cash is credited
Expense accounts are debited
Which of the ff. statements is incorrect? *
An entity's personnel should be given well-defined responsibilities.
The accounting function should be separated from the custodian of assets.
The responsibility for receiving merchandise and paying for it should be usually
given to one person.
Certain clerical personnel should be rotated among various jobs.
1/1
If material, deposits in foreign bank which are subject to foreign
exchange restriction shall be classified *
0/1
Separately as current assets wish appropriate disclosure
Separately as noncurrent assets wish appropriate disclosure
As part of cash and cash equivalents
Be written off as an extraordinary loss
Correct answer
Separately as noncurrent assets wish appropriate disclosure
A compensating balance *
Must be included in cash and cash equivalent
Which is legally restricted and related to a long-term loan is classified as current
asset.
Which is not legally restricted as to withdrawal is separately classified as current
asset.
Which is legally restricted and related to a short-term loan is separately
classified as current asset.
1/1
Which standard explained the cash and cash equivalents? *
1/1
PAS 7
PAS 16
PAS 4
PAS 32
Which Petty Cash Fund System refers to checks drawn to replenish fund 1/1
do not necessarily equal petty cash disbursements? *
Petty Cash Disbursement System
Imprest System
Fluctuating Fund System
None of the above
All of the following may be not included in cash, except *
Money market instrument
Petty Cash Fund
Postage Stamps on hand
Bank overdraft
1/1
Bank overdraft generally should be *
1/1
Reported as current liability
Reported as cash and cash equivalents
Reported as cash
Reported as deduction from cash
Eileen has money deposited in online banks, BDO, ING and BPI, with
1/1
respective balance of positive, negative and negative respectively. What
is the treatment for the ING balance? *
Reported as cash
Reported as cash and cash equivalents
Reported as current liability
Reported as deduction from other bank accounts
When cash is restricted for use in plant expansion, under what
classification must it be reported? *
Current assets
Current Liability
Equity
Noncurrent assets
1/1
In the absence of any statement, bank debits are assumed to be *
0/1
checks paid by bank and debit memos
outstanding cash
deposits acknowledged by bank and credit memos
unrecorded checks
Correct answer
deposits acknowledged by bank and credit memos
If the balance shown on a company's bank statement is more than the
correct cash balance, and neither the company nor the bank has made
any errors, the difference is due to: *
deposits credited by the bank but not recorded by the company
outstanding checks
deposits in transit
bank charges not yet recorded by the company
1/1
When cash is restricted as fund for payroll, it shall be classified as *
1/1
Restricted cash
Cash
Noncurrent asset
Petty cash fund
Which losses will be shown in Bad Debt Expense if using the direct write 1/1
off method? *
Allowance for bad debts
Investment losses
Actual losses from uncollectibles
Loss on sale
Which deposit is noninterest bearing? *
Time Deposit
Demand deposit
Saving deposit
Certificate of Deposit
Correct answer
Demand deposit
0/1
Which of the following is described as already debited by the bank as
1/1
disbursement?
Outstanding Checks
Deposit in transit
Certified Checks
NSF checks
Which of the following is described as already debited by the book as
but not yet added by the bank? *
1/1
NSF checks
Deposit in transit
Outstanding Checks
Certified Checks
Which of the following is described as already issued by the depositor
but not yet deducted by the bank?
NSF checks
Deposit in transit
Outstanding Checks
Certified Checks
1/1
The adjusting entries for a bank reconciliation *
0/1
May include a debit to AP for NSF check
May include a credit to AR for NSF check
May include a debit to office expense for a bank service charge
Are taken from the balance per bank section only
Correct answer
Are taken from the balance per bank section only
What is the treatment for allowance for bad debts? *
Current assets, under receivables section
Current assets in general
Current Liabilites
Current assets, under contra assets for receivables
1/1
Which method of recording bad debt loss is consistent with accrual
1/1
accounting? *
Direct write off method
Allowance method
Percent of sales method
Percent of AR method
Which method is theoretically correct in recording cash discounts? *
All three methods below
Net method
Gross Method
Allowance Method
Correct answer
Gross Method
0/1
A debit balance in the allowance for doubtful accounts *
0/1
Should never occur
May occur before the end of period adjustment for uncollectible accounts
Is always the result of management not providing large enough allowance in order to
manage earnings
May occur as the result of management not providing large enough allowance in
order to manage earnings
Correct answer
May occur before the end of period adjustment for uncollectible accounts
A previously defaulted customer pays its outstanding balance. Allowance 1/1
method. *
May decrease in gross accounts receivable
No effect in gross accounts receivable
May increase in net accounts receivable
No effect in net accounts receivable
A previously defaulted customer pays its outstanding balance. Allowance 0/1
method. *
No effect in total assets
Increase in total assets
Decrease in total assets
No effect in equity
Correct answer
Decrease in total assets
A previously defaulted customer pays its outstanding balance. Direct
write off method. *
Increase in total assets
No effect in equity
Increase in equity
No effect in total assets
Correct answer
Increase in equity
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I. Savings account like checking accounts are deposit accounts that earn 0/1
interest; II. A debit memo is a cash inflow. III. NSF checks should be
appropriately classified as a payable. *
Only III is false
I and II is true
I and III is true
Only I is true
Correct answer
Only III is false
I. Imprest should be used for small reimbursements and material
0/1
expenses such as utilities or to purchase assets for the firm. II. An
unrecorded voided check would be disregarded if the company issued
the check. III. Outstanding checks issued as a certified check shall be
included as an adjustment to book to bank balance. *
I and II are false
I and III are true
II and III are false
All statements are false
Correct answer
I and II are false
Problems
29 of 35 points
INSTRUCTIONS:
- No peso sign.
- Add commas and .00 for your final answer (whether negative or positive), e.g. 1,000,000.00, if zero: 0.00
- For negative answers, use a parenthesis instead of a negative sign, e.g. (1,000,000.00)
PROBLEM 1:
PROBLEM1: What is the cash and cash equivalents for cash company? *
10,221,900.00
8,047,750.00
7,937,750.00
8,102,750.00
1/1
PROBLEM 1: What is the total cash for cash company? *
1/1
7,610,500.00
8,047,750.00
7,885,500.00
7,896,500.00
PROBLEM 1: How much is the total receivables for cash company? *
1/1
0
33,000
638,000
665,500
PROBLEM 1: If the bank overdraft is in A bank, how much is the total cash 1/1
and cash equivalents? *
10,111,900.00
7,937,750.00
7,827,750.00
7,992,750.00
PROBLEM 1: In the original information provided, how much is the total
liabilities, if any? *
22,000
0
550,000
13,750
1/1
PROBLEM 2: What amount of petty cash fund should be reported? *
0/1
28,000.00
44,300.00
50,000.00
43,000.00
Correct answer
43,000.00
PROBLEM 3: What amount of petty cash fund should be reported? *
9000
7000
10000
6000
1/1
PROBLEM 4: What is the amount of petty cash fund that should be
reported? *
19,800.00
30,000.00
0
9,000.00
Correct answer
30,000.00
0/1
PROBLEM 5: What amount should be reported as cash in bank? *
3,600,000.00
3,630,000.00
3,625,000.00
2,880,000.00
1/1
PROBLEM 5: How much is the total book adjustment? *
1/1
2,195,000.00
2,225,000.00
2,220,000.00
1,475,000.00
PROBLEM 5: How much is the total bank adjustment? *
2,030,000.00
2,000,000.00
2,005,000.00
2,750,000.00
1/1
What is the adjusted cash in bank balance Apr 30? *
1/1
865,000.00
930,000.00
965,000.00
900,000.00
7) PBB Company's month-end bank statement showed a balance of
P3,600,000. Outstanding checks amounting to 1,200,000 a deposit of
P400,000 in transit at month end, and a check for P50,000 was
erroneously charged by the bank against the account. Error made by SBB
company in recording checks amounting to 5,000. What is the correct
cash balance of PBB company at month end? *
2,850,000.00
2,750,000.00
2,845,000.00
2,745,000.00
1/1
PROBLEM 8: What is the adjusted bank balance on November 30? *
636,300.00
634,800.00
685,180.00
637,800.00
1/1
PROBLEM 8: What is the adjusted book receipts in December? *
1/1
307,500.00
303,380.00
306,220.00
305,440.00
PROBLEM 8: What is the adjusted bank disbursements in December? *
2/2
353,980.00
365,840.00
345,960.00
366,020.00
PROBLEM 8: What is the adjusted book balance on December 31? *
577,500.00
577,400.00
576,420.00
579,460.00
1/1
What are the balances of accounts receivable, related allowance
account, and bad debts expense at December 31, 2021? *
P9,104,000, P1,653,370, and P1,299,370
P9,616,000, P1,791,610, and P1,437,610
P7,092,000, P1,110,130, and P756,130
None of the above
Correct answer
P7,092,000, P1,110,130, and P756,130
0/1
PROBLEM 10: The Accounts Receivable beginning balance (unadjusted) 1/1
of FERNANDEZ Company at December 31, 2006, is? *
50,400.00
68,400.00
252,000.00
270,000.00
PROBLEM 10: The credit balance of accounts receivable at the beginning 0/1
of the year for FERNANDEZ company is? *
48,600.00
66,600.00
108,600.00
126,600.00
Correct answer
108,600.00
PROBLEM 10: The accounts receivable balance of FERNANDEZ Company 1/1
at Dec. 31, 2006 is? *
50,400.00
68,400.00
252,000.00
270,000.00
PROBLEM 11: The amount to be reported as noncurrent receivables in the 1/1
statement of financial position at Dec. 31, 2021, is *
3,096,242.00
3,067,550.00
3,221,550.00
3,250,242.00
PROBLEM 11: The current portion of notes receivable on Dec. 31, 2021,
1/1
should be *
1,451,250.00
1,297,250.00
2,097,250.00
2,297,250.00
PROBLEM 11: The accrued interest receivable on Dec. 31, 2021, should be 1/1
*
257,000.00
180,000.00
285,692.00
334,000.00
PROBLEM 11: On December 31, 2021, the unamortized discount on notes 1/1
receivable from sale of equipment should be *
42,944.00
109,892.00
0
52,508.00
PROBLEM 11: The total interest income for the year ended Dec. 31, 2021, 1/1
should be *
427,000.00
455,692.00
375,692.00
532,692.00
On Dec. 5, 2021, Wanwan company sold its accounts receivable (net
realizable value, P260,000) for cash of P230,000. Ten percent of the
proceeds was withheld by the factor to allow for possible customer
returns and other account adjustments. The related allowance for bad
debts is P40,000. What amount of loss on factoring should be
recognized? *
30000
0
23000
26000
1/1
PROBLEM 13: How much is the balance of Client Retainer account in
0/1
Rich's books? *
80,000 Debit
80,000 Credit
150,000 Debit
150,000 Credit
Correct answer
80,000 Debit
PROBLEM 13: How much is the balance of Accounts Receivable factored 1/1
in Rich's books? *
1,000,000
800,000
150,000
200,000
PROBLEM 13: How much is the Receivable from factor balance in Poor's 1/1
books? *
100,000 Debit
100,000 Credit
80,000 Credit
20,000 Debit
PROBLEM 14: What is the note impairment loss on December 31, 2021? * 0/1
941,500.00
550,000.00
0
5,500,000.00
Correct answer
941,500.00
PROBLEM 14: What is the interest income to be reported by Mathilda
1/1
bank in 2022? *
501,435.00
326,435.00
455,850.00
550,000.00
PROBLEM 14: What is the carrying value of the notes receivable on Dec. 1/1
31, 2023? *
1,590,785.00
1,750,000.00
3,264,350.00
4,558,500.00
PROBLEM 14: What is the interest income in 2024? *
1/1
159,079.00
550,000.00
326,435.00
455,850.00
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Ma'am medjo nahihirapan po ako sa excel minsan po di ko maintindihan paano po nakukuha
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