accounting final

1)     Which of the following is not accomplished with an internal control system?

• A)     Protect assets.

• A)     Ensure reliable accounting.

• A)     Guarantee a return to investors.

• A)     Uphold company policies.

1)     Two clerks sharing the same cash register is a violation of which internal control principle?

• A)     Establish responsibilities.

• A)     Maintain adequate records.

• A)     Insure assets.

• A)     Bond key employees.

1)     Cash and cash equivalents include:

• A)     Postage stamps.

• A)     Customer checks, cashier’s checks, certified checks, and money orders.

• A)     Accounts payable.

• A)     Two-year certificates of deposit.

1)     The entry to establish a petty cash fund includes:

• A)     A debit to Cash and a credit to Petty Cash.

• A)     A debit to Cash and a credit to Cash Over and Short.

• A)     A debit to Petty Cash and a credit to Cash.

• A)     A debit to Petty Cash and a credit to Accounts Receivable.

1)     Examples of land improvements include parking lots and walkways.

• true

• false

1)     A plant asset’s useful life is the length of time it is used in a company’s operations.

• true

• false

1)     Intangible assets are nonphysical assets used in operations that give companies long-term rights or competitive advantages.

• true

• false

1)     Which of the following is not classified as a plant asset?

• A)     Machinery and equipment.

• A)     Land.

• A)     Patent.

• A)     Buildings.

1)     The cost of land would not include:

• A)     Purchase price.

• A)     Cost of parking lot lighting.

• A)     Costs of removing existing structures.

• A)     Title insurance fees.

1)     The total cost of an asset minus accumulated depreciation is called:

• Historical

• A)     Book value.

• A)     Present value.

• A)     Current (market) value.