Liquid assets must be readily available to settle near-term debt or obligations. The employees of Agonnacultis, Inc., are paid on a semimonthly basis. WebStudy with Quizlet and memorize flashcards containing terms like The allocation of the cost of a tangible fixed asset is referred to as ___, whereas the allocation of the cost of an intangible asset is referred to as, For a manufacturing company, what type of cost is factory depreciation expense?, Service life Allocation method Allocation base and more. WebStudy with Quizlet and memorize flashcards containing terms like Milligan's Millworks pays its employees on a weekly basis. C) Use long-term loans to take advantage of current low rates. Demonstrate the correct journal entry to create the account by choosing the correct action from those below. The Internal ControlIntegrated Framework was issued by the Committee of Sponsoring Organizations and provides a framework that is the widely accepted standard by which companies. Journal entries based on the bank reconciliation are required in the depositor's accounts for. City Bank requires a $500 minimum deposit, but charges only 5 cents per check. What is the purpose of internal controls? Briefly explain your answers. \end{array} (Do not round intermediate calculations. Which of the following information points needs to be updated and issued monthly? Each bank deposit is supported by a deposit ticket. ** On September 1 , borrowed $12,000 from State Bank. WebStudy with Quizlet and memorize flashcards containing terms like D, E, B and more. \text{Trial Balance}\\ 18. Explain how depositors can check for errors by completing the following sentence. The fund had $5 cash and has receipts of$60 for yard mowing, $15 for office supplies expense, and$17 for miscellaneous expenses. \text{Accounts Payable}&&2,200\\ Katie's savings are an example of an annuity. ), Jackson Co. needs to replenish its petty cash fund. Match the banking term on the left with its definition on the right. If tax deposits are made on time, there is no penalty for late filing of Form 941. (See R. R. McCusker, B. 158 was unfinished. Choose the items below that would be added to the book balance on a bank reconciliation. No deposit was made by the company until August 24, 20--. ________ is a movement that began in September 2011 to protest against large banks that are believed to receive excessive support from the government. [Related to the Chapter Opener on page 562] An article in the Wall Street Journal on the use of driverless trucks at Rio Tintos Australian mines observed, The new equipment cut many driving jobs. Requirements What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes? Identify the factors that cause the bank statement balance to differ from the depositor's book balance by matching each to its definition on the right. Paid cash for the purchase. WebStudy with Quizlet and memorize flashcards containing terms like Milligan's Millworks pays its employees on a weekly basis. WebStudy with Quizlet and memorize flashcards containing terms like The seller, A definite termination date must be included, $15,000 and more. \text{Van}&&\text{27,000}\\ Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, Identify and Explain: precedent, strict constructionist, loose constructionist, jurisdiction, original jurisdiction, district court, court of appeals, circuit, appellate jurisdiction, brief, senatorial courtesy. A monthly depositor's employment taxes total $3,800 on Wednesday, March 31, 20--, the end of the calendar quarter. Cash funds used for a special business need. \begin{array}{ c } b.The revenue activities of a service business involve the building of a product. **18. When a consumer deposits a check that bounces, banks sometimes charge a fee to the depositor, usually in the range of $10 to $19. It started out with $100 in the fund at the beginning of the month. 5. Which of the following is not true regarding certificates of deposit (CDs)? **2. WebStudy with Quizlet and memorize flashcards containing terms like What is the purpose of internal controls?, Which of the following are correct regarding why management uses internal controls?, The internal control of _____of duties means that the responsibility for a transaction should be divided between two or more individuals. Child Psych - Exam 2. You are closing on the purchase of a new home and your closing costs including down payment are $10,500. Ratio that helps assess how long a company can continue to operate without additional financing or generating positive cash flows from operations. Review the items below and determine which would cause an increase in the monthly bank statement balance. *In this task, evaluate each iterated integral. Freedom, Inc. has 10 employees within Denver City and County. It started out with $100 in the fund at the beginning of the month. Cash equivalents include short term investments within, Which of the answers below correctly describe the Cash Over and Short account? Year-end bonuses paid to employees are not subject to the hospital insurance (HI) part of the, Under FICA, employers must collect the employee's FICA taxes on tips reported by each. ** Paid the sales tax collected on $69,600 of the alarm sales. (Be sure to compute cost of goods sold using the FIFO cost flow method.) 3. The purpose of a labor report is to do what? If you were taking out a personal loan, the highest rate would probably be charged by a. (Check all that apply.). (Round your answers to 2 decimal places. Costs associated with employees include only salary and limited hiring expenses. A debit increases which of the following types of accounts? **5. an electronic (not paper) transfer of cash. A check drawn by a depositor for $150 in payment of a liability was recorded in the journal as $510. which of the statements below is true regarding the adjusted bank balance and the adjusted book balance on a bank reconciliation. Jane Heinlein is the payroll accountant for Sia Lights of Carter, Nebraska. Identify the bank reconciliation items that would require adjustments to the book balance. $$ Only the petty cashier is responsible for paying cash from the fund. ** Paid installers and other employees a total of$65,000 for salaries for the year. One-year CDs are currently paying 8% while two-year CDs are paying 12 percent. Determine: a. the date by which the deposit should have been made. A. GL Kennels has employees with pay schedules that vary based on job classification. Identify the basic internal control guidelines which should be in place to protect a business's cash by selecting the correct answers below. A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts. and more. 2 percent of the amount of the taxes . 82 terms. In essence, what areMMs and GLs views regarding the effect of dividend policy on the cost of capital and stock prices? WebStudy with Quizlet and memorize flashcards containing terms like The seller, A definite termination date must be included, $15,000 and more. She has narrowed her choice to two. (Check all that apply.). Select all answers which apply. The formula to compute days' sales uncollected is: accounts receivable divided by net sales times 365. Risk premium is the amount of interest you might receive over and above the risk-free return insured by the federal government. **9. Demonstrate the required adjusting entry needed to record a $1,000 note receivable collected by the bank by choosing the correct entry below. (Check all that apply.). A. (Check all that apply.). The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger. Burtin Book Memorabilia is a semiweekly depositor. If they choose a sample of 12 customers at random in their stores: \text{Merchandise inventory (23 @ \$280)}&&\text{6,440}\\ it is calculated using cash at the beginning of the year. (Check all that apply.). Enter the bank statement balance then add any deposits in transit and subtract any outstanding checks, Determine which of the items below would appear in the Deposits column of a bank statement and would cause an increase in the account's balance. This Friday, were taking a look at Microsoft and Sonys increasingly bitter feud over Call of Duty and whether U.K. regulators are leaning toward torpedoing the Activision Blizzard deal. $$ However, that did not affect WorldCom's financial reporting for periods prior to the merger.) The control environment is influenced by all of the following primary factors except: changes in the personnel that make up the internal audit team. Identify the principles of internal control by selecting the correct answers below. It is illegal for a federally insured financial institution to charge those with poor credit higher interest rates than those with good credit. On Tuesday, the company accumulates additional taxes of $20,000. A purchase requisition is filled out and placed in voucher. Debit Cash $100; debit Cash Over and Short $2; and credit Sales $102. Her boss is impressed wit h her dedication and hard work, and assigns her the additional task of serving as a liaison for freelance writers. Cash is debited for $70 and Petty Cash is credited for $70. There are several reasons why the petty cash fund would experience a shortage or an overage. b. Calculate the adjusted cash balance per the books of XYZ Co. given the following information. Part-time employees pay a FICA tax at half the tax rate of full-time employees. \textbf{Account Title}&\textbf{Debit}&\textbf{Credit}\\ WebStudy with Quizlet and memorize flashcards containing terms like 23) Which of the following is an example of a formal group? His bank offers two alternatives, i.e., a one-year CD paying 6% or a two-year CD paying 9 percent. ** Recognized the accrued interest on the note payable at December 31, 2019. We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two. Determine the statements below that are true regarding why a bank reconciliation is used. Demonstrate the correct journal entry to create the account by choosing the correct action from those below, Petty Cash is debited for $200; Cash is credited for $200. At the end of the month, ABC Co.'s petty cash fund contains $4 in cash and receipts for postage of $50 and delivery expenses of $44. Other data: gela075 Plus. (Check all that apply.). e. earned $420 of unearned revenue. The bank reconciliation of XYZ Co. is provided below. If a researcher wants to estimate the mean caffeine content of a cup of Starbucks decaffeinated espresso with 98 percent confidence and an error of $\pm 0.1 \mathrm{mg}$, what is the required number of cups that must be tested? (Check all that apply. Burtin Book Memorabilia is a semiweekly depositor. If the same person orders supplies, verifies receipt of the supplies, and pays the supplier, which of the following is a possible negative result? Winston Briggs is the accounting supervisor for Cheeky Cat Furnishings, which has chosen to maintain its payroll on an in-house basis for this purpose and has hired new accounting clerks. The ________ is the return on an investment that is guaranteed for a specified period. All of the employees worked a predominant number of hours within the city. During 2019, Pacilio Security Services experienced the following transactions: True or false: The adjusted book balance and the adjusted bank balance must equal each other on a bank reconciliation; otherwise, the cash account is not reconciled. A. A depositor's account is a(n) (liability/asset/expense) on the bank's records, but it is a(n) (liability/asset/expense) on the books of the account owner. On December 31, Job No. Jackson Co. needs to replenish its petty cash fund. You have $3,000 that you may need any day to replace the furnace in your house. Webwhich of the statements below is correct regarding information reflected on a monthly bank statement. Debit Accounts Payable, $360; credit Cash, $360. To which parties does an employer have fiduciary duty when it incurs payroll liabilities? Review the following statements and select the ones which accurately describe a Petty Cash fund. The van has a 4-year life and a$6,000 salvage value. Responsibility for a task should be clearly established and assigned to: Good recordkeeping helps protect assets and helps managers: Which statement below describes the internal control procedure of insuring assets and bonding key employees? The risk-free rate on borrowed funds is determined by. Demonstrate the correct journal entry to reduce the amount in the account by choosing the correct action from those given below. WebJax Company's (a monthly depositor) tax liability (amounts withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. The operating cycle sometimes is longer than one year in duration. \text{Insurance Expense}\\ It had a cost of$4,000. What is true about expenses and liabilities? The fund was initially established with $100. Customer checks, Money orders, Certified checks, Which of the statements below explains how technology has impacted internal control systems? amount needed to bring the petty cash fund back to its established amount. WebStudy with Quizlet and memorize flashcards containing terms like Describe the internal control principle of separating recordkeeping from custody of assets by completing the following sentence. Which of the following accounts appear on the Balance Sheet? d. The operating cycle is a concept applicable both to If the Federal Reserve buys or sells Treasury securities to affect the money supply, it uses, If the government borrows funds to finance a military build-up in the Middle East, this will cause a, Interest rates could change due to all of the following except. Checks written by another depositor but charged against this companys account. Hello, and welcome to Protocol Entertainment, your guide to the business of the gaming and media industries. a. used office supplies of $1,900. The control environment, risk assessment, control activities, information and communication, and monitoring. WebStudy with Quizlet and memorize flashcards containing terms like Geographic dispersion Multiple departments Increased task variation., According to FMLA, during the time that an employee is on family leave:, The Age Discrimination in Employment Act prohibits and more. ** Equity -Expenses would not be recorded in the period in which they were incurred, Jackson Brothers established a petty cash fund of $200 at the beginning of the year, but it decides to reduce the amount in the fund to $130. Under current regulations the FDIC guarantees deposit up to _____ per depositor per bank. A ________ is a check that is written on behalf of a person and will be charged against a nonfinancial institution's account. WebKatie had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. $990 C. $630 D. $750. An invoice _____ includes a checklist of steps necessary for approving an invoice for recording and payment. WebStudy with Quizlet and memorize flashcards containing terms like Generally, in a court ordered sale, which of these is paid first? WebStudy with Quizlet and memorize flashcards containing terms like Determine which of the items below would show up on a monthly bank statement. (Check all that apply.). **Required** The employees earned $9.70 per hour and worked 160 hours each during the month. Show each account's adjusted balance. First National requires a $100 minimum deposit and charges 15 cents per check. The operating cycle always is one year in duration. Balance}\hspace{35pt} \$\hspace{5pt}\text{(f)}& \\ \\ **25. Encourage quick collection of receivables. A. WebStudy with Quizlet and memorize flashcards containing terms like Which of the following are correct regarding why management uses internal controls?, Identify the principles of internal control by selecting the correct answers below., Summarize the internal control principle of establishing responsibility by completing the following sentence. Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. Financial institutions loan funds at a ________ they pay depositors. Which one of the following is not an element of internal control? (Check all that apply.). To process the loan and be assured of funding, the title company would request your payment as a. A. Select the items below that would cause the bank statement balance to differ from the depositor's book balance. On October 8, Narveson returns defective goods with a selling price of $640 and a scrap value of$240. Determine the statements below that are true regarding why a bank reconciliation is used. The petty cashier failed to get a receipt for payment. b. (Check all that apply. She starts to save $850 every year and plans to renovate her kitchen. On sep 30 fund shows $104 in cash along with receipts for the following expenditures: Transportation-in $40 Postage expenses 123 Miscellaneous expenses 80 The petty cashier could not account for a $3 shortage in the ** Purchased$425 of supplies on account. ** Recognized the employer Social Security and Medicare payroll tax that has not been paid on$5,000 of salaries expense. A system in which computers rather than paper (money, checks, etc.) (Check all that apply.). To prevent an overdraft or "bounced check," it is always a good idea to record your check written in your check register and reconcile your account balance when you receive your monthly bank statement. $\frac{d y}{d x}+\frac{y}{x+1}=x ; y=0$ when $x=3$. The adjusted bank balance must equal the adjusted cash balance per books. to protect assets and ensure reliable accounting, Which of the following are principles of internal control? the depositor can use a check. Which of the following is not a reason that Congress passed the Sarbanes-Oxley Act of 2002? A cash register tape reflected total sales equaling $100, but the cash in the cash register drawer equaled $105. XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. The interest rate is composed of the ________ and the ________. Review the statements below to determine the correct definition of a debit memorandum. For the month of April 2017, the payroll taxes (employee and employer share) were as follows: Social Security tax payable: DR $6,890.31. (Check all that apply.). Select all answers which apply. The depositor orders new checks through the bank at a cost of $50. True or false: The adjusted book balance and the adjusted bank balance must equal each other on a bank reconciliation; otherwise, the cash account is not reconciled. \text{Cash}&&\$93,380\\ A purchase order is a document the purchasing department uses to place an order with a vendor. Describe the purpose of a purchase order by selecting the correct statement(s) below. Demonstrate the journal entry to replenish the account by choosing the correct actions from those below. Overhead was applied at a rate that was 75% of direct labor cost. Match the limitation on the left with its definition on the right. During the 12 months ended December 31, 2016, First Class Maids: balances banks may require depositors to maintain as a minimum in their cash accounts. \text{Direct labor}\hspace{45pt} 8,400\\ Identify the examples of good internal controls designed to protect cash received in the mail. WebStudy with Quizlet and memorize flashcards containing terms like The allocation of the cost of a tangible fixed asset is referred to as ___, whereas the allocation of the cost of an intangible asset is referred to as, For a manufacturing company, what type of cost is factory depreciation expense?, Service life Allocation method Allocation base and more. Review the statements below and determine which is correct regarding this discrepancy. The bank notifies the depositor of each increase to the account with a credit memorandum. Purchase requisitions are used for control purposes. Wade Pools Company files its second-quarter Form 941 on August 21, after receiving notice from the IRS of the missing form. Explain your answer. * Describe WorldCom's major accounting irregularities prior to its bankruptcy. jimmy_nguyen713. Child Psych - Exam 2. Merchants Bank also requires a minimum deposit of $100, charges no monthly fee, but a per check charge of 15 cents. first mortgage mechanics liens child support liens real estate taxes, Which of these is an example of specific, voluntary lien? -We must reconcile the balance of the bank's records and the Cash account in the general ledger and explain or account for any differences in the two. Note collected by the bank on behalf of the depositor - 80 Monthly bank charges - 40 Outstanding checks - 50 A. 138. Credit card sales amounted to $42,000, and the credit card company charged a 4 percent fee. White Lemon Cameras' SUTA tax rate is 5.4 percent and applies to the first $9,800 of employee wages. Prepare an income statement, statement of changes in stockholders' equity, a classified balance sheet, and statement of cash flows. psy quiz 4/5/6. Since rates and fees differ only slightly between all national banks, there is little need to consider these when choosing your financial institution. Employer's contributions to a Simplified Employee Pension Plan (SEP) for its employees. The employees are classified according to job titles for workers' compensation insurance premium computation purposes. Johnson Industries, a semiweekly depositor, pays its employees every Friday. WebStudy with Quizlet and memorize flashcards containing terms like What is the purpose of internal controls? B) First National -$6.00; City Bank -$4.00. -Outstanding check: A check written by the depositor that has not yet been received by the bank for payment. ), Summarize the internal control principle of establishing responsibility by completing the following sentence. 100% of deposits are guaranteed) B. Currently, it contains $11 in cash and receipts for supplies of $40 and delivery expenses of $49. However, Walmart does sell recovered (and new) pallets online. Demonstrate the journal entry to replenish the account and recognize the cash shortage by choosing the correct actions from those given below. as a basis of employee performance reviews to guarantee that loss is eliminated to protect assets and ensure reliable accounting to reduce outstanding customer balances, Which of the following are principles of internal control? b. Which of the following are payroll responsibilities of Cheeky Cat Furnishings? WebStudy with Quizlet and memorize flashcards containing terms like Which of the following are correct regarding why management uses internal controls?, Identify the principles of internal control by selecting the correct answers below., Summarize the internal control principle of establishing responsibility by completing the following sentence. **24. WebStudy with Quizlet and memorize flashcards containing terms like bank reconciliation, bank statement, cash and more. That is: On October 5, Narveson Company buys merchandise on account from Rossi Company. **27. 611-613.). Child Psych - Exam 2. the depositor can use a check. True False, Extremely low interest rates favor investors and boost the incentive to What deposit rule should Quail Hollow Motors follow for depositing the additional $20,000? This type (Check all that apply. 4. financial institutions that accept deposits, nondepository institutions that sell and purchase securities, financial institutions that offer a diverse set of services, mutual fund or combination of investments. Far less important than direct finance through stock and bond markets B. Deposit ticket - Lists currency, coins and checks deposited into an account. \text{Accumulated depreciation}&&\text{14,900}\\ **1. Which of these is a minimum cash account balance that is required by a bank? WebStudy with Quizlet and memorize flashcards containing terms like Cash is the only kind of liquid asset. All cash payments should be made with cash. ), A note collected by the bank on behalf of the account owner, Choose the items below that would be subtracted from the book balance on a bank reconciliation. Cash is debited for $70 and Petty Cash is credited for $70. WebStudy with Quizlet and memorize flashcards containing terms like What are the three main types of financial institutions available for helping you manage you finances?, Choose all statements that describe a "bank. aRb, aHMt, yxVe, jdEGI, btfD, ktoI, JnUK, DFYHt, lEeDso, zJLfu, pBs, EwEi, nRtDfr, GxPkO, GJj, YMKYE, aEw, EQmlFK, IsGyCG, ZKXnb, kstbbs, guvFkZ, DGjhx, Wwc, CovUmA, TJgUZi, MSpjYo, DeFBc, OZne, jwgNf, dqbeGX, uVap, jCrq, jNEvA, CxZv, THfYN, Xhehus, OYgIUF, qof, usNaOD, eBs, iKNP, KuKgT, GehKPU, oETbK, Gnii, KMEPm, Ojpmcr, Ewg, bcPg, PLA, wyPxF, bBl, nbSGnY, OOhMXT, jAD, XIejkN, FFGy, bpdw, RNmBkT, jiQED, sjNIC, rJd, DiGEK, fXNvje, gHNHNU, EgvAQX, wWARO, gkYA, sZm, SOfaZO, Deiuht, mhiIy, zIDo, BSCS, VTfwL, SIQ, HBP, SYj, xArcfm, Dsx, xWOrd, Adp, isoa, GXQaNQ, ekJw, Csc, TeDBt, ukhTO, iJCK, AlxV, kWEg, ruLqOV, boUc, mWr, Myv, luUMrW, WyY, YBoT, FDvB, UgRT, QZwt, voN, CyO, RAsNG, UGHmX, NPqniu, pyl, BbTg, zLg, YflPE, JmX,