ACC 290 Week 5 Assignment
Answer the following summary question: What is the role of the Sarbanes-Oxley Act of 2002 in relation to the types of internal controls used by corporations such as those illustrated in Exercises 7-4, 7-5, and 7-6?
Click here for the solution: What is the role of the Sarbanes-Oxley Act of 2002 in relation to the types of internal controls used by corporations
Showing posts with label Corporations. Show all posts
Showing posts with label Corporations. Show all posts
Friday, October 9, 2015
Monday, August 17, 2015
The Sarbanes-Oxley Act requires that all US corporations under the jurisdiction of the Securities and Exchange Commission
MULTIPLE CHOICE
1. The Sarbanes-Oxley Act requires that all US corporations under the jurisdiction of the Securities and Exchange Commission
2. The control principle related to NOT having the same person authorize and pay for goods is known as
3. Maximum benefit from independent internal verification is obtained when
4. Allowing only designated personnel to handle cash receipts is an example of
5. Storing cash in a company safe is an application of which internal control principle?
6. Reconciling the bank statement monthly is an example of
7. A voucher system is a series of prescribed control procedures
8. The size of the petty cash fund is dependent on
9. A $100 petty cash fund has cash of $18 and receipts of $86. The journal entry to replenish the account would include a
10. A check returned by the bank marked “NSF” means
11. A bank reconciliation should be prepared
12. Deposits in transit
13. When making a payment from the petty cash fund for postage stamps, the following journal entry is made
14. A bank may issue a credit memorandum for
15. Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of
16. Interest is usually associated with
17. Which of the following would require a compound journal entry?
18. If a company fails to record estimated bad debts expense
19. The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the
20. An aging of a company’s accounts receivables indicates that $9,000 are estimated to be uncollectable. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a
21. A reasonable amount of uncollectible accounts is evidence
22. Bad debt Expense is reported on the income statement as
23. Two bases for estimating uncollectible accounts are
24. Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $25,000. If the balance of the Allowance for Doubtful Accounts is $8000 debit before adjustment, what is the amount of bad debts expense for that period?
25. The sale of receivables by a business
26. A company regularly sales its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables
27. The interest on a $2,000, 6%, 90 day note receivable is
28. A note receivable is a negotiable instrument which
29. When a note is accepted to settle an open account, Notes receivables is debited for the note’s
30. Which of the following are also called trade receivables?
Click here for the solution: The Sarbanes-Oxley Act requires that all US corporations under the jurisdiction of the Securities and Exchange Commission
1. The Sarbanes-Oxley Act requires that all US corporations under the jurisdiction of the Securities and Exchange Commission
2. The control principle related to NOT having the same person authorize and pay for goods is known as
3. Maximum benefit from independent internal verification is obtained when
4. Allowing only designated personnel to handle cash receipts is an example of
5. Storing cash in a company safe is an application of which internal control principle?
6. Reconciling the bank statement monthly is an example of
7. A voucher system is a series of prescribed control procedures
8. The size of the petty cash fund is dependent on
9. A $100 petty cash fund has cash of $18 and receipts of $86. The journal entry to replenish the account would include a
10. A check returned by the bank marked “NSF” means
11. A bank reconciliation should be prepared
12. Deposits in transit
13. When making a payment from the petty cash fund for postage stamps, the following journal entry is made
14. A bank may issue a credit memorandum for
15. Cash equivalents are highly liquid investments that can be converted into a specific amount of cash with maturities of
16. Interest is usually associated with
17. Which of the following would require a compound journal entry?
18. If a company fails to record estimated bad debts expense
19. The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the
20. An aging of a company’s accounts receivables indicates that $9,000 are estimated to be uncollectable. If Allowance for Doubtful Accounts has a $1,100 credit balance, the adjustment to record bad debts for the period will require a
21. A reasonable amount of uncollectible accounts is evidence
22. Bad debt Expense is reported on the income statement as
23. Two bases for estimating uncollectible accounts are
24. Using the percentage of receivables method for recording bad debt expense, estimated uncollectible accounts are $25,000. If the balance of the Allowance for Doubtful Accounts is $8000 debit before adjustment, what is the amount of bad debts expense for that period?
25. The sale of receivables by a business
26. A company regularly sales its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables
27. The interest on a $2,000, 6%, 90 day note receivable is
28. A note receivable is a negotiable instrument which
29. When a note is accepted to settle an open account, Notes receivables is debited for the note’s
30. Which of the following are also called trade receivables?
Click here for the solution: The Sarbanes-Oxley Act requires that all US corporations under the jurisdiction of the Securities and Exchange Commission
Thursday, August 13, 2015
Corporations invest in other companies for all of the following reasons except to
1) Corporations invest in other companies for all of the following reasons except to
2) A typical investment to house excess cash until needed is
3) Pension funds and mutual funds regularly invest in debt and stock securities to
4) On January 1, 2008, Turner Company purchased at face value, a $1,000, 7% bond that pays interest on January 1 and July 1. Turner Company has a calendar year end.
The entry for the receipt of interest on July 1, 2008, is
5) If a short-term debt investment is sold, the Investment account is
6) Steven Co. purchased 30, 6% Johnston Company bonds for $30,000 cash plus brokerage fees of $300. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a
7) If an investor owns less than 20% of the common stock of another corporation as a long-term investment,
8) If the equity method is being used, cash dividends received
9) If one company owns more than 50% of the common stock of another company,
10) The contra-account, Market Adjustment, is also called a(n)
11) The balance in the Unrealized Loss—Equity account will
12) If the cost of an available-for-sale security exceeds its fair value by $40,000, the entry to recognize the loss
13) Which of the following is a major difference when accounting for long-term debt investments versus short-term debt investments?
14) A company that acquires less than 20% ownership interest in another company should account for the stock investment in that company using
15) Securities bought and held primarily for sale in the near term to generate income on short-term price differences are
Click here for the solution: Corporations invest in other companies for all of the following reasons except to
2) A typical investment to house excess cash until needed is
3) Pension funds and mutual funds regularly invest in debt and stock securities to
4) On January 1, 2008, Turner Company purchased at face value, a $1,000, 7% bond that pays interest on January 1 and July 1. Turner Company has a calendar year end.
The entry for the receipt of interest on July 1, 2008, is
5) If a short-term debt investment is sold, the Investment account is
6) Steven Co. purchased 30, 6% Johnston Company bonds for $30,000 cash plus brokerage fees of $300. Interest is payable semiannually on July 1 and January 1. The entry to record the December 31 interest accrual would include a
7) If an investor owns less than 20% of the common stock of another corporation as a long-term investment,
8) If the equity method is being used, cash dividends received
9) If one company owns more than 50% of the common stock of another company,
10) The contra-account, Market Adjustment, is also called a(n)
11) The balance in the Unrealized Loss—Equity account will
12) If the cost of an available-for-sale security exceeds its fair value by $40,000, the entry to recognize the loss
13) Which of the following is a major difference when accounting for long-term debt investments versus short-term debt investments?
14) A company that acquires less than 20% ownership interest in another company should account for the stock investment in that company using
15) Securities bought and held primarily for sale in the near term to generate income on short-term price differences are
Click here for the solution: Corporations invest in other companies for all of the following reasons except to
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