Free Printable ACC 102 Review Activity

1.

Savings accounts are usually classified as cash on the balance sheet.

a)

TRUE

b)

FALSE

2.

Companies include postdated checks and petty cash funds as cash.

a)

TRUE

b)

FALSE

3.

Cash equivalents are investments with original maturities of six months or less.

a)

TRUE

b)

FALSE

4.

Bank overdrafts are always offset against the cash account in the balance sheet.

a)

TRUE

b)

FALSE

5.

Trade receivables include notes receivable and advances to officers and employees.

a)

TRUE

b)

FALSE

6.

Which of the following is not considered cash for financial reporting purposes?

a)

Petty cash funds and change funds

b)

Money orders, certified checks, and personal checks

c)

Coin, currency, and available funds

d)

Postdated checks and I.O.U.'s

7.

In which account are post-dated checks received classified?

a)

Receivables.

b)

Prepaid expenses.

c)

Cash.

d)

Payables.

8.

What is a compensating balance?

a)

Savings account balances.

b)

Margin accounts held with brokers.

c)

Temporary investments serving as collateral for outstanding loans.

d)

Minimum deposits required to be maintained in connection with a borrowing arrangement.

9.

Under which section of the balance sheet is "cash restricted for plant expansion" reported?

a)

Current assets.

b)

Non-current assets.

c)

Current liabilities.

d)

Stockholders' equity.

10.

The category "trade receivables" includes

a)

advances to officers and employees.

b)

income tax refunds receivable.

c)

claims against insurance companies for casualties sustained.

d)

none of these.

11.

Consider the following: Cash in Bank – checking account of P18,500, Cash on hand of P500, and Post-dated checks received totaling P3,500. How much should be reported as cash in the balance sheet?

a)

18,500

b)

19,000

c)

22,500

12.

Kennison Company has cash in bank of $15,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Kennison should report cash of

a)

$14,000.

b)

$15,000.

c)

$17,000.

d)

$18,000.

13.

Steinert Company has the following items at year-end:

Cash in bank 35,000

Petty cash 500

Short-term commercial paper (2 months) 8,200

Postdated checks 2,100

Steinert should report cash and cash equivalents of

a)

$35,000.

b)

$35,500.

c)

$43,700.

d)

$45,800.

14.

Smithson Corporation had a 1/1/12 balance in the Allowance for Doubtful Accounts of $20,000. During 2012, it wrote off $14,400 of accounts and collected $4,200 on accounts previously written off. The balance in Accounts Receivable was $400,000 at 1/1 and $480,000 at 12/31. At 12/31/12, Smithson estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2012?

a)

$4,000.

b)

$14,200.

c)

$18,400.

d)

$24,000.

15.

McGlone Corporation had a 1/1/12 balance in the Allowance for Doubtful Accounts of $25,000. During 2012, it wrote off $18,000 of accounts and collected $5,250 on accounts previously written off. The balance in Accounts Receivable was $500,000 at 1/1 and $600,000 at 12/31. At 12/31/12, McGlone estimates that 5% of accounts receivable will prove to be uncollectible. What should McGlone report as its Allowance for Doubtful Accounts at 12/31/12?

a)

$12,000.

b)

$12,250.

c)

$17,250.

d)

$30,000.

ACC 102 Review Activity

Total questions: 15

Worksheet time: 9mins

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