112.After completing the bank reconciliation, whichof the following reconciling items would require an adjusting journal entry on the company's books? a. outstanding checks b. service charges c. deposits in transit d. cash on hand 113.Brad’s Market's accountant is preparing its May bank reconciliation and has collected the following data: Per Books Per Bank May 1 balance $11,600 $10,000 May deposits 24,600 21,200 May checks 27,800 29,000 Note collected (includes 10% interest) — 4,400 May service charge — 20 May 31 balance 8,400 6,580 Additionally, deposits in transit and outstanding checks from April's reconciliation were $4,400 and $2,800, respectively.The correct balance […]

41.Which is not a key element of internal control over cash receipts? a.daily recording of all cash receipts in the accounting records b.daily entry in a voucher register c.immediate counting by the person opening the mail or using the cash register d.daily bank deposits 42.Some companies use automated payment processing technology in which paper checks that may arrive at a lockbox are converted into electronic payments then the check itself is destroyed. This process is referred to as a.internal control over payments. b.Check 21. c.accounts receivable conversion. d.electronic funds transfer. 43.All of the following are important elements of internal control […]

71.A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as a.majority interest. b.noncontrolling interest. c.earned capital. d.unearned capital. 72.Distributions to owners include all of the following except a.paying dividends. b.repurchasing treasury stock. c.giving away fixed assets. d.noncontrolling interests. 73.In preparing a statement of changes in shareholders' equity, the company includes land given to a shareholder as a dividend. This transaction is included in the statement because it represents a.an investment by a shareholder that increases equity. b.an investment by a shareholder that decreases equity. c.a distribution […]

11) Liabilities are economic obligations of the organization to outsiders, or claims against its assets by outsiders. 12) Accountants use the terms notes payable or notes receivable to describe the existence of promissory notes. 13) Examples of assets include cash, inventory, and capital stock. 14) Inventory is goods held by a company for the purpose of sale to customers, and is considered a liability on the balance sheet. 15) A balance sheet is dated for a period of time, such as “for the year ended December 31, 20X2.” 16) Owners' equity is the residual interest in the organization's assets after […]

11.The eight phases of the joint FASB and IASB framework project are: 1) objective and qualitative characteristics, 2) elements and recognition, 3) presentation and disclosure, 4) reporting entity, 5) measurement, 6) framework for GAAP hierarchy, 7) applicability to the not-for-profit sector, and 8) any remaining issues needing to be addressed. a.True b.False 12.Three phases of the convergence project were put on hold they were elements and recognition, measurement, and presentation and disclosure. a.True b.False 13.Which of the following statements is not true with regard to the benefits derived from the FASB's conceptual framework of accounting? a.It serves as a guide […]