Scribd
Upload
530 views

NYIF Accounting Module 5 Quiz

The document contains a 16 question multiple choice quiz about accounting concepts related to sales, receivables, internal controls, and cash. The questions cover topics such as recording sales returns, calculating discounts on sales, due dates for accounts receivable, writing off bad debts, calculating bad debt expense, and evaluating internal control procedures.

Uploaded by

Shahd Okasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
530 views

NYIF Accounting Module 5 Quiz

The document contains a 16 question multiple choice quiz about accounting concepts related to sales, receivables, internal controls, and cash. The questions cover topics such as recording sales returns, calculating discounts on sales, due dates for accounts receivable, writing off bad debts, calculating bad debt expense, and evaluating internal control procedures.

Uploaded by

Shahd Okasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Module 5 Quiz

Multiple Choice

1. The entry to record the return of goods from a customer would include

a. debit to Sales.
b. credit to Sales.
c. debit to Sales Returns and Allowances.
d. credit to Sales Returns and Allowances.
e. debit to Purchases Returns and Allowances.
f. credit to Purchases Returns and Allowances.

2. Joshua, Inc., offers two trade discounts for its products. A 10% discount is offered to wholesalers, and
5% to retailers. If Joshua, Inc., sells merchandise priced at $45,000 to a wholesaler, at what amount
should the sale be recorded?

a. $49,500
b. $40,500
c. $47,250
d. $42,750

3. A sale on October 1 with terms of 20 EOM is due to be collected by

a. October 21.
b. October 31.
c. November 1.
d. November 20.

4. Buffy sold goods to Biff on December 1, 20X2, for $20,000. The invoice was marked 2/10, net 60. If
Biff pays the bill on December 10, 20X2, how much will Buffy receive?

a. $20,400
b. $19,600
c. $20,000
d. $20,600

5. Brady, Inc. had credit card sales of $50,000 for the month of July. The credit card company charges a
3% service cost for processing the sale. How much will Brady, Inc., receive when payment is received
from the credit card company?

a. $48,500
b. $50,000
c. $51,500
d. Need more information to solve

6. Melissa Company uses the specific write-off method to recognize bad debts. The entry to write off an
uncollectible account would be recorded by

a. a debit to Allowance for Uncollectible Accounts and a credit to Accounts Receivable.


b. a debit to Bad Debt Expense and a credit to Accounts Receivable.
c. a debit to Bad Debt Expense and a credit to Allowance for Uncollectible Accounts.
d. a debit to Allowance for Uncollectible Accounts and a credit to Bad Debt Expense.

7. Under the allowance method of accounting for bad debts, the journal entry to record the write-off of
a specific uncollectible account would include

a. debit Allowance for Uncollectible Accounts.


b. debit Bad Debt Expense.
c. credit Allowance for Uncollectible Accounts.
d. debit Accounts Receivable.

8. SAY Co. had $900,000 of sales during 20X2, $400,000 of which were on credit. The balances in its
Accounts Receivable and its Allowance for Uncollectible Accounts on December 31, 20X2 were $80,000
and $20,000, respectively. Past experience indicates that 5% of all credit sales will not be collected.
What is the correct amount for SAY Co. to debit to Bad Debt Expense?

AR 80,000

AFDA (20,000)

Net Recievables 60,000

a. $35,000
b. $25,000
c. $15,000
d. $20,000

9. There is a debit balance of $2,000 before adjustments in Yetmar Company’s Allowance for
Uncollectible Accounts. Based on the aging schedule prepared at the end of the accounting period,
Yetmar estimates that $40,000 of receivables are uncollectible. The amount of bad debt expense to be
recognized is

a. $42,000.
b. $40,000.
c. $38,000.
d. $ 2,000.

10. JKY, Inc., had credit sales in the current year of $5,000,000. JKY’s beginning and ending accounts
receivable for the current year were $800,000 and $1,200,000. What was JKY’s accounts receivable
turnover for the year?

a. 2.50
b. 4.17
c. 5.00
d. 6.25
11. If JKY, Inc.’s accounts receivable turnover for the current year was 10.0, what was their average
collection period?

a. 52 days

b. 50 days

c. 45 days

d. 37 days

12. Which of the following would not be considered cash?

a. Paper money and coins


b. Money orders
c. Checks
d. 60-day note receivable

13. Which of the following is true regarding the control of cash in a business?

a. The employee who authorizes a check should not sign the check.
b. The employee who authorizes a check should sign the check if under $100.
c. The employees who handle the cash should also be responsible for bank reconciliations.
d. Prenumbered checks should never be used.

14. The methods and procedures for authorizing transactions, safeguarding assets, and ensuring the
accuracy of the financial records are ________ controls.

a. financial
b. internal
c. managerial
d. administrative
e. accounting
f. d and e
g. b and e

15. There are numerous general objectives for internal accounting controls. Which objectives relate to
establishing the system of accountability and are aimed at preventing errors and irregularities?

a. Valuation, authorization, recording


b. Reconciliation, valuation, recording
c. Safeguarding, authorization, recording
d. Safeguarding, valuation, recording
e. None of the above

16. What is the most important element of a successful internal control system?

a. Publication of the internal controls


b. Performing a cost-benefit analysis before each internal control is put into place
c. Personnel
d. Purchasing adequate insurance coverage

You might also like