Category: Business Finance – Accounting

   

Assignment 08

AR300 Art History

Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.  Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be four (4) pages in length; refer to the “Assignment Format” page for specific format requirements.

Part A In this first portion of the assignment you are asked to analyze the iconography of the artworks listed below. Defined in the textbook, iconography is an understanding of the subject matter and symbols of an artwork (Stokstad and Cothern, 2016, pg. 6). Based on your understanding of the cultures and time periods you have encountered over the past 4 lessons of textbook readings, analyze the following artworks in terms of their iconography. 

1. Adam and Eve, Albrecht Drer, 1504. Engraving. Located on page 357 of the textbook.

2. The Founding of Tenochtitlan page from the Codex Mendoza, Aztec, 1545 CE. Located on page 411 of the textbook.

3. The Hip Pendant Representing an Iyoba (Queen Mother), Nigeria, c. 1550 CE. Located on page 433 of the textbook.

4. Tar Beach, Faith Ringgold, 1988. Acrylic on canvas, and pieced cloth. Located on page 572 of the textbook.

Part B Compare and contrast the function of the above works. Focus your analysis on how each artwork functioned spiritually and/or politically in their original context. Your discussion should include the importance of the artwork at the time of its creation for the viewer at that time. For instance, you could address issues such as, was the artwork used as a visual teaching of a concept, was it used as an historical record to document an event? Compare and contrast the function of the four artworks and distinguish the connections that can be made, pointing out patterns you find. 

Conclude your essay with a short discussion on the use of symbols in the 21st century to communicate, applying what you learned regarding the use of symbolic imagery throughout the centuries of art studied in the past 4 weeks. (Think of advertising logos or emojis etc. when considering 21st century examples.)

Grading Rubric

Please refer to the rubric on the next page for the grading criteria for this assignment.

   

Assignment 04

AR300 Art History

Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading.  Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar.  Sources must be cited in APA format.  Your response should be four (4) pages in length; refer to the “Assignment Format” page for specific format requirements.

Part A Briefly define art history as an academic field based on your understanding of the readings in the textbook Introduction. Next, discuss two of the natural and human threats to artworks that concern contemporary art historians. Provide specific examples of threats, the artworks involved, and how these threats affect the interpretation of the works by art historians. Your discussion should be based on the information in the textbook Introduction and throughout the textbook and lecture readings of the first four (4) lessons.

Part B Explain the construction of megalithic architecture and dome building, tracing its history from pre-historic art to the Renaissance. Begin your discussion describing the architectural innovations of the tomb in Newgrange, Ireland and connect these innovations with subsequent examples of the tholos tombs in Greece, to the Pantheon in Rome and conclude with the Florence Cathedral. Your discussion should include a definition of terms you use as defined in the textbook readings and demonstrate an understanding of the connections these buildings have in common.

Works of architecture to include in your Part B discussion:

1. Tomb, Newgrange, Ireland. c. 3000-2500 BCE. Located on page 29 in the textbook.

2. Interior of tholos tomb, Mycenae, Greece. c. 1300-1200 BCE. Located on page 100 in the textbook.

3. Pantheon, Rome. 110-128 CE. Located on page 148 and 149 in the textbook.

4. Filippo Brunelleschi, Dome of Florence Cathedral. 1420-1436 CE. Located on page 307 of the textbook.

  

Purpose of Assignment 

This comprehensive case requires students to evaluate a static budget and prepare flexible budgets to meet managerial needs. Students are required to calculate and analyze variances and discuss how variances are critical to managerial decision making. 

Assignment Steps 

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC), Green Pastures Static Budget Income Statement 

Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products. 

Scenario: Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made the boarding business extremely competitive. To meet the competition, Green Pastures planned in 2017 to entertain clients, advertise more extensively, and absorb expenses formerly paid by clients such as veterinary and blacksmith fees.

The budget report for 2017 is presented as an attachment. As shown, the static income statement budget for the year is based on an expected 21,900 boarding days at $25 per mare. The variable expenses per mare per day were budgeted: feed $5, veterinary fees $3, blacksmith fees $0.25, and supplies $0.55.  All other budgeted expenses were either semifixed or fixed.

During the year, management decided not to replace a worker who quit in March, but it did issue a new advertising brochure and did more entertaining of clients. 

Develop a minimum 700-word examination of the financial statements and include the following:

• Based on the static      budget report:
  • What was the primary       cause(s) of the loss in net income?
  • Did management do a       good, average, or poor job of controlling expenses?
  • Were management’s       decisions to stay competitive sound?
• Prepare a flexible      budget report for the year.
• Based on the flexible      budget report:
  • What was the primary       cause(s) of the loss in net income?
  • Did management do a       good, average, or poor job of controlling expenses?
  • Were management’s       decisions to stay competitive sound?
• What course of action do      you recommend for the management of Green Pastures?

Show your work in Microsoft Word or Excel

  

Question 1

Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department to be $660,000. The company produces 300,000 wheels and 600,000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels?

$264,000

$282,856

$165,000

$220,000

Question 2

Which of the following will not result in an unfavorable controllable margin difference?

Sales under budget; costs over budget

Sales under budget; costs under budget

Sales exceeding budget; costs over budget

Sales exceeding budget; costs under budget

Question 3

Scorpion Production Company planned to use 1 yard of plastic per unit budgeted at $81 a yard. However, the plastic actually cost $80 per yard. The company actually made 3,900 units, although it had planned to make only 3,300 units. Total yards used for production were 3,960. How much is the total materials variance?

$4,860 U

$48,600 U

$900 U

$3,960 F

Question 4

Top management notices a variation from budget and an investigation of the difference reveals that the department manager could not be expected to have controlled the variation. Which of the following statements is applicable?

Department managers’ performances should not be evaluated based on actual results to budgeted results.

Department managers should only be held accountable for controllable variances for their departments.

Department managers should be held accountable for all variances from budgets for their departments.

Department managers should be credited for favorable variances even if they are beyond their control.

Question 5

Financial and managerial accounting are similar in that both:

have the same primary users.

have reports that are prepared quarterly and annually.

deal with the economic events of an enterprise.

produce general-purpose reports.

Question 6

What is the primary difference between a static budget and a flexible budget?

The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold.

The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.

The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management.

The static budget contains only fixed costs, while the flexible budget contains only variable costs.

Question 7

It costs Garner Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3,000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Garner has sufficient unused capacity to produce the 3,000 scales. If the special order is accepted, what will be the effect on net income?

$45,000 increase

$6,000 increase

$6,000 decrease

$9,000 decrease

Question 8

Which of the following statements concerning users of accounting information is incorrect?

Management is considered an internal user.

Taxing authorities are considered external users.

Regulatory authorities are considered internal users.

Present creditors are considered external users.

Question 9

The entry to record the acquisition of raw materials on account is:

Raw Materials Inventory Accounts Payable

Manufacturing Overhead Raw Materials Inventory Accounts Payable

Accounts Payable Raw Materials Inventory

Work in Process Inventory Accounts Payable

Question 10

Which of the following is not an underlying assumption of CVP analysis?

Sales mix is constant.

Beginning inventory is larger than ending inventory.

Cost classifications are reasonably accurate.

Changes in activity are the only factors that affect costs.

Question 11

Henson Company began the year with retained earnings of $380,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Hensons retained earnings at the end of the year?

$460,000

$500,000

$840,000

$540,000

Question 12

Differences between a job order cost system and a process cost system include all of the following except the:

unit cost computations.

documents used to track costs.

point at which costs are totaled.

flow of costs.

Question 13

Danner Corporation reported net sales of $650,000, $720,000, and $780,000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what percentage do 2018 sales represent of the base?

20%

 120%

108%

83%

Question 14

An activity-based overhead rate is computed as follows:

actual overhead divided by estimated use of cost drivers.

actual overhead divided by actual use of cost drivers.

estimated overhead divided by estimated use of cost drivers.

estimated overhead divided by actual use of cost drivers.

Question 15

If a plant is operating at full capacity and receives a one-time opportunity to accept an order at a special price below its usual price, then:

the order will likely be rejected.

the order will likely be accepted.

fixed costs are not relevant.

only variable costs are relevant.

Question 16

Which statement is correct?

The use of the cash basis of accounting violates both the revenue recognition and expense recognition principles.

As long as management is ethical, there are no problems with using the cash basis of accounting.

As long as a company consistently uses the cash basis of accounting, generally accepted accounting principles allow its use.

The cash basis of accounting is objective because no one can be certain of the amount of revenue until the cash is received.

Question 17

At September 1, 2017, Baxter Inc. reported Retained Earnings of $423,000. During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000. What is the balance in Retained Earnings at September 30, 2017?

$24,000 credit

$441,000 credit

$423,000 debit

$426,000 credit

Question 18

In performing a vertical analysis, the base for sales revenues on the income statement is:

net sales.

net income.

cost of goods available for sale.

sales revenue.

Question 19

Which of the following statements is not true?

Operating leverage refers to the extent to which a companys net income reacts to a given change in sales.

When a companys sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.

Companies that have higher fixed costs relative to variable costs have higher operating leverage.

When a companys sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly.

Question 20

Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $13 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

25%

65%

35%

75%

Question 21

Miller Manufacturings degree of operating leverage is 1.5. Warren Corporations degree of operating leverage is 3. Warrens earnings would go up (or down) by ________ as much as Millers with an equal increase (or decrease) in sales.

2 times

1/2 times

4.5 times

1.5 times

Question 22

The investigation of materials price variance usually begins in the:

first production department.

controller’s office.

accounts payable department.

purchasing department.

Question 23

The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at:

$600 million.

$300 million.

$350 million.

$700 million.

Question 24

If there are no units in process at the beginning of the period, then:

the units to be accounted for will equal the units transferred out and the units in process at the end of the period.

the units started into production will equal the number of units transferred out.

only one computation of equivalent units of production will be necessary.

the company must be using a job order cost system.

Question 25

Which one of the following is an example of a period cost?

A box cost associated with computers.

Workers’ compensation insurance on factory workers’ wages allocated to the factory.

A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer.

A manager’s salary for work that is done in the corporate head office.

Question 26

Which is the last step in developing the master budget?

Preparing the budgeted balance sheet

Preparing the cash budget

Preparing the cost of goods manufactured budget

Preparing the budgeted income statement

Question 27

Are advanced receipts from customers treated as revenue at the time of receipt? Why or why not?

Yes, they are treated as revenue at the time of receipt because the company has access to the cash.

Yes, the intent of the company is to perform the work and the customer is confident that the services will be completed.

No, the amount of revenue cannot be adequately determined until the company completes the work.

No, revenue cannot be recognized until the work is performed.

Question 28

La More Company had the following transactions during 2016:

Sales of $9,000 on account

Collected $4,000 for services to be performed in 2017

Paid $3,750 cash in salaries for 2016

Purchased airline tickets for $500 in December for a trip to take place in 2017

What is La Mores 2016 net income using accrual accounting?

$9,750

$5,750

$5,250

$9,250

Question 29

Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost $1,600,000

Actual annual overhead cost $1,575,000

Estimated machine hours 400,000

Actual machine hours  390,000

$1,560,000 applied and $15,000 underapplied

$1,560,000 applied and $15,000 overapplied

$1,600,000 applied and $15,000 overapplied

$1,575,000 applied and neither under- nor overapplied

Question 30

Based on the following data, what is the amount of working capital?

Accounts payable..$64,000

Accounts receivable..114,000

Cash. 70,000

Intangible assets100,000

Inventory. 138,000

Long-term investments..160,000

Long-term liabilities …200,000

Short-term investments…80,000

Notes payable (short-term)..56,000

Property, plant, and equipment..1,340,000

Prepaid insurance…….2,000

$284,000

$332,000

$326,000

$370,000

  

Purpose of Assignment 

The materials covered this week distinguish between the different costing methods and provides needed tools for decision making. This case study focuses on determining equivalent units in a production business setting. 

Assignment Steps 

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC) 

Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products. 

Scenario: Davis Skaros has recently been promoted to production manager. He has just started to receive various managerial reports, including the production cost report you prepared. It showed his department had 2,000 equivalent units in ending inventory. His department has had a history of not keeping enough inventory on hand to meet demand. He has come to you, very angry, and wants to know why you credited him with only 2,000 units when he knows he had at least twice that many on hand.

Prepare a maximum 700-word informal memo and explain to Mr. Skaros why his production cost report showed only 2,000 equivalent units in ending inventory. Using a professional tone, explain to him clearly why your report is accurate.

Format the assignment consistent with APA guidelines. 

  

Question 1 (5 points)

When services are rendered but payment is not made, which account would be increased?

Question 1 options:

  

accounts receivable

 

accounts   payable

 

cash

 

withdrawal

Question 2 (5 points)

Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include __________.

Question 2 options:

  

cash   and capital increase, $12,000

 

cash   and revenue increase, $12,000

 

cash increases and accounts receivable decreases $12,000

 

accounts   receivable decreases and capital increases $12,000

Question 3 (5 points)

A company has the following balances in its asset accounts: Cash, $750; Accounts Receivable, $125; Equipment, $2,000; Supplies, $875. The amount of the companys total assets is __________.

Question 3 options:

  

$875

 

$1,750

 

$2,875

 

$3,750

Question 4 (5 points)

An accounting report that shows the changes in capital during the accounting period is __________.

Question 4 options:

  

a   balance sheet

 

an   income statement

 

a statement of owner’s equity

 

All   of these answers are correct.

Question 5 (5 points)

Which of the following transactions has no effect on owner’s equity?

Question 5 options:

  

paying   salaries expense

 

equipment purchase

 

billing   for services rendered

 

a   withdrawal

Question 6 (5 points)

The increase or decrease in the owner’s equity is reported on the __________.

Question 6 options:

  

income   statement

 

statement of owner’s equity

 

balance   sheet

 

All   of these answers are correct.

Question 7 (5 points)

The payment of accounts payable would __________.

Question 7 options:

  

increase   both assets and liabilities

 

increase   assets and decrease liabilities

 

decrease both assets and liabilities

 

decrease   assets and increase liabilities

Question 8 (5 points)

Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________.

Question 8 options:

  

increase   in both cash and withdrawal

 

decrease   in both cash and withdrawal

 

decrease in cash and increase in withdrawal

 

increase   in cash and decrease in withdrawal

Question 9 (5 points)

The financial statement that shows revenue and expenses for a period of time is the __________.

Question 9 options:

  

balance   sheet

 

income statement

 

statement   of owner’s equity

 

statement   of cash flows

Question 10 (5 points)

A company has $4,500 in its Revenue account at the end of a period. The Expenses are as follows: Rent, $750; Utilities, $150; Salaries, $2,400; Insurance, $225. The net income (loss. for the period is __________.

Question 10 options:

  

$3,600

 

($2,100.

 

$975

 

($1,425.

Question 11 (5 points)

Carrie billed her legal clients $6,000 for legal work completed during the month. This transaction will __________.

Question 11 options:

  

cause   a $6,000 increase in revenues and liabilities

 

cause   a $6,000 increase in revenues and a decrease in liabilities

 

cause a $6,000 increase in assets and revenues

 

not   be recorded until the cash is collected

Question 12 (5 points)

Which of the following is not one of the four basic financial statements?

Question 12 options:

  

Statement   of Cash Flows

 

Income   Statement

 

Statement of Company Position

 

Balance   Sheet

Question 13 (5 points)

The net income or net loss is calculated on the __________.

Question 13 options:

  

balance   sheet

 

statement   of owner’s equity

 

income statement

 

None   of the above answers are correct.

Question 14 (5 points)

The statement of owners equity contains the __________.

Question 14 options:

  

owners capital for the beginning of the period

 

liabilities   of the company

 

total   amount owed by credit customers

 

balance   in the cash account

Question 15 (5 points)

The financial statement that shows business results in terms of revenue and expenses is __________.

Question 15 options:

  

an income statement

 

a   balance sheet

 

a   statement of owner’s equity

 

the   statement of cash flows

Question 16 (5 points)

Which of the following statements is prepared first?

Question 16 options:

  

Statement   of Owner’s Equity

 

Balance   Sheet

 

Income Statement

 

None   of the above

Question 17 (5 points)

An expense should be recorded when __________.

Question 17 options:

  

the   bill is paid

 

the expense is incurred

 

a   bill is received in the mail

 

None   of the above answers are correct.

Question 18 (5 points)

If ‘Ol Fashioned Toys’ revenues are less than its expenses during the accounting period, then __________.

Question 18 options:

  

owner’s   withdrawals decrease net income

 

net   income causes liabilities to decrease

 

the business will incur a loss

 

owner’s   withdrawals increase owner’s equity

Question 19 (5 points)

If a company’s revenues are higher than its expenses, it will cause __________.

Question 19 options:

  

an increase in owner’s equity

 

a   decrease in owner’s equity

 

an   increase in assets

 

no   effect on owner’s equity

Question 20 (5 points)

BPK Industries has a net income for the period of $2,500. The balance in the Owners Capital account for the beginning of the period is $5,000 and the owner has withdrawn $1,650 for personal expenses. The balance in the Owners Capital account at the end of the period will be __________.

Question 20 options:

  

$5,850

 

$7,500

 

$850

 

$9,150

  

Jason is a very insistent (some would say pushy) man. When you told him you would need additional information before making your decision, he acted offended and said, “What more could you possibly want to know?” You responded you would , at minimum, need complete, audited financial statements. 

Develop a minimum 700-word examination of the financial statements and include the following:

• Explain why you would want the financial statements to      be audited.
• Discuss the implications of the ratios provided for the      lending decision you are to make. That is, does the information paint a      favorable picture? Are these ratios relevant to the decision? State why or      why not.
• Evaluate trends in the performance of P. Jason      Corporation. Identify each performance measure as favorable or unfavorable      and explain the significance of each.
• List three other ratios you would want to calculate for      P. Jason Corporation, and in your own words explain in detail why you      would use each.
• As the loan officer, what else would you do to gain a      better understanding of Paul Jason’s, and the Corporation’s financial      picture and why?
• Based on your analysis of P. Jason Corporation, will      you recommend approval for the requested loan? Provide specific details to      support your decision. 

  

Purpose of Assignment 

This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability. 

Assignment Steps 

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC), University Library, Library resources: Company Directories and Financials 

Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products. 

Select a publicly traded, U.S. corporation with which you are familiar or one where you currently work or have worked in the past.

Research the company on the Internet and download the Income Statement, Statement of Shareholders’ Equity, Balance Sheet, and Statement of Cash Flows.

Develop a minimum 700-word examination of the financial statements and include the following:

• Determine      the net income for the current fiscal year (FY). Is this income up or down      from the prior year? 
• Explain      the relevance of changes in net income to investors.
• Determine      the ending balance in shareholders’ equity. Why would organizations such      as labor unions be interested in this?
• Determine      the total value of assets. 
• Discuss      the relevance of the total value of assets to potential creditors and why      this is important.
• Compute      the return on assets. Discuss the relative profitability of the company      based on your results.
• Compute      the working capital and current ratio. Evaluate the relative liquidity of      the company based on your results.
• Compute      the debt to assets ratio and the free cash flow for your company. Analyze      the results and comment on the relative solvency of the company.
• Discuss      how the financial statements are used in your current role or a position      you would like to hold. How might these aid you in managerial decision      making?

Show your work in Microsoft Word or Excel. 

Complete calculations/computations using Microsoft Word or Excel. 

Include the four financial statements along with your assignment.

  

Question 1 of 205.0 Points

Outstanding checks __________.

A. have been subtracted on the bank records but not the checkbook records 

B. have not been presented to the bank for payment and have not been subtracted from the checkbook

C. have not been presented to the bank for payment but have been subtracted in the checkbook

D. have been returned to the business for non-payment

Question 2 of 205.0 Points

Internal control over a company’s assets should include which of the following?

A. Responsibilities and duties of employees will be divided. 

B. All cash receipts will be deposited into the bank the same day they arrive. 

C. All cash payments will be made by check (except petty cash..

D. All of these answers are correct.

Question 3 of 205.0 Points

The bank statement shows __________.

A. the beginning bank balance of the cash at the start of the month 

B. the checks the bank has paid and any deposits received 

C. any other charges or additions to the bank balance 

D. All of these answers are correct.

Question 4 of 205.0 Points

From the bank reconciliation no entry was recorded for deposits in transit. This would cause __________.

A. assets to be overstated 

B. assets to be understated 

C. no impact since deposits in transit are already included in the balance per books 

D. no impact since deposits are not recorded on the books

Question 5 of 205.0 Points

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________.

A. increase their cash account on the company’s books 

B. decrease their cash account on the company’s books 

C. increase the ending cash balance on the bank statement 

D. decrease the ending cash balance on the bank statement

Question 6 of 205.0 Points

The journal entry to reverse the entry of a customer’s nonsufficient funds check would include a __________.

A. debit to Cash 

B. credit to Cash 

C. debit to Accounts Payable 

D. credit to Accounts Receivable

Question 7 of 205.0 Points

Advantages of on-line banking include __________.

A. convenience

B. transaction speed 

C. effectiveness

D. All of the above answers are correct.

Question 8 of 205.0 Points

The bank statement included bank charges. On the bank reconciliation, the item is __________.

A. an addition to the balance per company books 

B. an addition to the balance per bank statement 

C. a deduction from the balance per bank statement 

D. a deduction from the balance per company books

Question 9 of 205.0 Points

The bank charged another company’s check against our account, this would be included on the bank reconciliation as a(n. __________.

A. addition to the balance per books 

B. subtraction from the balance per books 

C. addition to the balance per bank 

D.  subtraction from the balance per bank

Question 10 of 205.0 Points

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

A. It is added to the bank balance. 

B. It is shown as a debit memo. 

 C. It is shown as a credit memo. 

D. None of these answers are correct.

Question 11 of 205.0 Points

Determine the adjusted cash balance per bank for Santa’s Packaging on November 30, from the following information.

Cash balance on the bank statement

$2,350

Customer’s check returnedNSF

500

Customer’s note collected by the bank

600

Deposits in transit, November 30

1,400

Outstanding checks, November 30

2,650

A. $1,250 

B. $1,100 

C. $1,550 

D. $1,350

Question 12 of 205.0 Points

Which item should be added to the company’s book balance during the bank reconciliation?

A. deposit in transit 

B. check outstanding 

C. bank service charge 

D. note collected by the bank

Question 13 of 205.0 Points

An example of an internal control is __________.

A. the use of a bank account 

B. the use of pre-numbered checks 

C. the use of checks with reference source documents 

D. All of these answers are correct.

Question 14 of 205.0 Points

Calculate, from the following information the adjusted cash balance at the end of April.

Bank statement ending cash balance

$2,000

General ledger cash balance ending

3,250

Bank monthly service charge

45

Deposits in transit

2,500

Outstanding checks

1,500

NSF check returned with bank statement

205

A. $3,000 

B. $4,250 

C.  $4,000 

D. $5,500

Question 15 of 205.0 Points

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

A. They would be added to the balance of the bank statement. 

B. They would be subtracted from the balance of the bank statement. 

C. They would be added to the balance per books. 

D. They would be ignored.

Question 16 of 205.0 Points

Which item(s. will require a journal entry to update the balance in the Cash account?

A. checks outstanding and deposits in transit 

B. bank service charges, note collected by the bank, and deposits in transit 

C. bank service charges, note collected by the bank, and error made by Accounting Services 

D. None of these answers are correct.

Question 17 of 205.0 Points

A restrictive endorsement on a check __________.

A. can be further endorsed by someone else 

B. is the safest endorsement for businesses 

C. permits the bank to use its best judgment 

D. None of these answers are correct.

Question 18 of 205.0 Points

Which of the following bank reconciliation items would be reflected in a journal entry?

A. error made by the bank 

B. outstanding checks 

C. bank service charges 

D. deposit in transit

Question 19 of 205.0 Points

Endorsing a check __________.

A. guarantees payment 

B. transfers the right to deposit or transfer cash 

C. cancels the transaction 

D. All of these answers are correct.

Question 20 of 205.0 Points

Company policy for internal control should include all of the following EXCEPT for what?

A. Employees will be rotated. 

B. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. 

C. The owner (or responsible employee. signs all checks after receiving authorization to pay from the departments concerned. 

D. At time of payment, all supporting invoices or documents will be stamped “paid.”

  

Question 1 (5 points)

The drawee is the __________.

Question 1 options:

  

person   who writes the check

 

bank that drawer has an account with

 

the   person to whom the check is payable

 

the   person who reconciles the account

Question 2 (5 points)

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

Question 2 options:

  

It   is added to the bank balance.

 

It is shown as a debit memo.

 

It   is shown as a credit memo.

 

None   of these answers are correct.

Question 3 (5 points)

Which of the following bank reconciliation items would be reflected in a journal entry?

Question 3 options:

  

error   made by the bank

 

outstanding   checks

 

bank service charges

 

deposit   in transit

Question 4 (5 points)

A restrictive endorsement on a check __________.

Question 4 options:

  

can   be further endorsed by someone else

 

is the safest endorsement for businesses

 

permits   the bank to use its best judgment

 

None   of these answers are correct.

Question 5 (5 points)

The bank statement shows __________.

Question 5 options:

  

the   beginning bank balance of the cash at the start of the month

 

the   checks the bank has paid and any deposits received

 

any   other charges or additions to the bank balance

 

All of these answers are correct.

Question 6 (5 points)

From the bank reconciliation no entry was recorded for deposits in transit. This would cause __________.

Question 6 options:

  

assets   to be overstated

 

assets   to be understated

 

no impact since deposits in transit are already included in   the balance per books

 

no   impact since deposits are not recorded on the books

Question 7 (5 points)

Endorsing a check __________.

Question 7 options:

  

guarantees   payment

 

transfers the right to deposit or transfer cash

 

cancels   the transaction

 

All   of these answers are correct.

Question 8 (5 points)

Which item(s. will require a journal entry to update the balance in the Cash account?

Question 8 options:

  

checks   outstanding and deposits in transit

 

bank   service charges, note collected by the bank, and deposits in transit

 

bank service charges, note collected by the bank, and error   made by Accounting Services

 

None   of these answers are correct.

Question 9 (5 points)

Determine the adjusted cash balance per bank for Santa’s Packaging on November 30, from the following information.

  

Cash balance on the bank statement

$2,350

 

Customer’s check returnedNSF

500

 

Customer’s note collected by the   bank

600

 

Deposits in transit, November 30

1,400

 

Outstanding checks, November 30

2,650

Question 9 options:

  

$1,250

 

$1,100

 

$1,550

 

$1,350

Question 10 (5 points)

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

Question 10 options:

  

They   would be added to the balance of the bank statement.

 

They would be subtracted from the balance of the bank statement.

 

They   would be added to the balance per books.

 

They   would be ignored.

Question 11 (5 points)

If the written amount on the check does not match the amount expressed in figures, the bank may __________.

Question 11 options:

  

pay   the amount written in words

 

return the check unpaid

 

contact   the drawer to see what was meant

 

All   of these answers are correct.

Question 12 (5 points)

The check is written and signed by the __________.

Question 12 options:

  

drawer

 

drawee

 

payee

 

payer

Question 13 (5 points)

Advantages of on-line banking include __________.

Question 13 options:

  

convenience

 

transaction   speed

 

effectiveness

 

All of the above answers are correct.

Question 14 (5 points)

Which item should be added to the company’s book balance during the bank reconciliation?

Question 14 options:

  

deposit   in transit

 

check   outstanding

 

bank   service charge

 

note collected by the bank

Question 15 (5 points)

Calculate, from the following information the adjusted cash balance at the end of April.

  

Bank statement ending cash balance

$2,000

 

General ledger cash balance ending

3,250

 

Bank monthly service charge

45

 

Deposits in transit

2,500

 

Outstanding checks

1,500

 

NSF check returned with bank   statement

205

Question 15 options:

  

$3,000

 

$4,250

 

$4,000

 

$5,500

Question 16 (5 points)

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________.

Question 16 options:

  

increase their cash account on the company’s books

 

decrease   their cash account on the company’s books

 

increase   the ending cash balance on the bank statement

 

decrease   the ending cash balance on the bank statement

Question 17 (5 points)

On a bank reconciliation, deposits added to the bank side are called __________.

Question 17 options:

  

deposits in transit

 

late   deposits

 

deposits   on hold

 

outstanding   deposits

Question 18 (5 points)

Company policy for internal control should include all of the following EXCEPT for what?

Question 18 options:

  

Employees   will be rotated.

 

Monthly bank statements should be sent to and reconciled by   the same employees who authorize payments and write checks.

 

The   owner (or responsible employee. signs all checks after receiving   authorization to pay from the departments concerned.

 

At   time of payment, all supporting invoices or documents will be stamped   "paid."

Question 19 (5 points)

The bank statement included bank charges. On the bank reconciliation, the item is __________.

Question 19 options:

  

an   addition to the balance per company books

 

an   addition to the balance per bank statement

 

a   deduction from the balance per bank statement

 

a deduction from the balance per company books

Question 20 (5 points)

A full endorsement on a check __________.

Question 20 options:

  

is   the same as a blank endorsement

 

can be endorsed only by the person or   company named in the original endorsement

 

is   the safest endorsement for businesses

 

does   none of the above