ACCT 5312 Exam 2 Questions and Answers
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Terms in this set (80)
1. The current assets of most cash and assets expected to be converted to cash
companies are usually made up of: within a year.
A. assets that are currently used in
the operations of the company.
B. cash and assets expected to be
converted to cash within a year.
C. a very small proportion (less than
10%) of the total assets of the entity.
D. cash, marketable securities, and
accounts and notes receivable.
,2. Which of the following is the Accounts receivable, inventories, prepaid
correct balance sheet presentation expenses, other current assets.
for current assets?
A. Cash, inventories, account
receivables, prepaid expenses.
B. Cash equivalents, cash, other
current assets, accounts receivable.
C. Accounts receivable, inventories,
prepaid expenses, other current
assets.
D. Marketable securities, cash, notes
receivable, prepaid expenses.
3. The principal reason for determine the amount of cash in the account
reconciling the cash balance per actually available to the entity.
books with the balance shown on
the bank statement is to:
A. determine the amount of cash in
the account actually available to the
entity.
B. satisfy generally accepted
accounting principles.
C. verify the amount of petty cash on
hand.
D. determine whether or not the
entity has issued an NSF check.
,4. For which of the following A bank service charge.
reconciling items would an adjusting
entry be necessary on the company's
book?
A. A deposit in transit.
B. An error by the bank.
C. Outstanding checks.
D. A bank service charge.
, When a manufacturer invests in risk avoidance is of great importance.
short-term marketable securities:
A. the return on investment is more
important than the risk involved.
B. the securities are likely to have a
maturity date more than a year in the
future.
C. the market value of the securities
is likely to fluctuate significantly.
D. risk avoidance is of great
importance.
6. A cash equivalent is a current asset is readily convertible into cash with a minimal risk.
that:
A. will be converted to cash within
one year.
B. will be converted to cash within
one month.
C. is readily convertible into cash
with a minimal risk.
D. is readily convertible into cash
with a substantial risk.
E. none of these.
Practice Questions with Solutions Newest |
Already Graded A+
Save
Terms in this set (80)
1. The current assets of most cash and assets expected to be converted to cash
companies are usually made up of: within a year.
A. assets that are currently used in
the operations of the company.
B. cash and assets expected to be
converted to cash within a year.
C. a very small proportion (less than
10%) of the total assets of the entity.
D. cash, marketable securities, and
accounts and notes receivable.
,2. Which of the following is the Accounts receivable, inventories, prepaid
correct balance sheet presentation expenses, other current assets.
for current assets?
A. Cash, inventories, account
receivables, prepaid expenses.
B. Cash equivalents, cash, other
current assets, accounts receivable.
C. Accounts receivable, inventories,
prepaid expenses, other current
assets.
D. Marketable securities, cash, notes
receivable, prepaid expenses.
3. The principal reason for determine the amount of cash in the account
reconciling the cash balance per actually available to the entity.
books with the balance shown on
the bank statement is to:
A. determine the amount of cash in
the account actually available to the
entity.
B. satisfy generally accepted
accounting principles.
C. verify the amount of petty cash on
hand.
D. determine whether or not the
entity has issued an NSF check.
,4. For which of the following A bank service charge.
reconciling items would an adjusting
entry be necessary on the company's
book?
A. A deposit in transit.
B. An error by the bank.
C. Outstanding checks.
D. A bank service charge.
, When a manufacturer invests in risk avoidance is of great importance.
short-term marketable securities:
A. the return on investment is more
important than the risk involved.
B. the securities are likely to have a
maturity date more than a year in the
future.
C. the market value of the securities
is likely to fluctuate significantly.
D. risk avoidance is of great
importance.
6. A cash equivalent is a current asset is readily convertible into cash with a minimal risk.
that:
A. will be converted to cash within
one year.
B. will be converted to cash within
one month.
C. is readily convertible into cash
with a minimal risk.
D. is readily convertible into cash
with a substantial risk.
E. none of these.
