Question 1

An employee is ________________ when a company purchases an insurance policy against losses from theft by that employee.

Accepted Answer

The answer of An employee is ________________ when a company...

Question 2

Annie's Attic reported the following information for September 30.  Instructions:
(1)Explain the purpose of the acid-test ratio.
(2)Calculate the acid-test ratio to two decimals.
(3)What does the acid-test ratio reveal about Annie's Attic?

Accepted Answer

The answer of Annie's Attic reported the following information for...

Question 3

__________________ are short-term,highly liquid investment assets that are readily convertible to a known amount of cash.

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The answer of __________________ are short-term,highly liquid investment assets that...

Question 4

A(n)________________________ explains the difference between the balance of a chequing account according to the depositor's records and the balance reported on the bank statement.

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The answer of A(n)________________________ explains the difference between the balance...

Question 5

The following information was available for Romney Supply Company for the month ended May 31,2015.

Accepted Answer

The answer of The following information was available for Romney...

Question 6

An insurance policy purchased by a company to protect against losses through employee theft is called a(n)_______________.

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The answer of An insurance policy purchased by a company...

Question 7

The following information refers to Annie's Attic and competitors in the antiques business.  Information:
Comment on the relative liquidity positions of the companies.

Accepted Answer

The answer of The following information refers to Annie's Attic...

Question 8

Below,preceded by identifying letters,are seven items that would cause Xavier Sales Company's book balance of cash to differ from its bank statement balance.  Indicate where each item would appear on Xavier Sales Company's bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below.
Book balance of cash Bank statement balance

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The answer of Below,preceded by identifying letters,are seven items that...

Question 9

The _____________________ account is used to record the effects of cash overages and shortages from errors in making change.

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The answer of The _____________________ account is used to record...

Question 10

A ratio used to assess a company's ability to cover its current debts with quick assets is called the _________________.

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The answer of A ratio used to assess a company's...

Question 11

A petty cash fund is used for ______________________________.

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The answer of A petty cash fund is used for...

Question 12

The following information pertains to Z-Mart,its competition,and the industry standards.  The industry standard for the current ratio is 1.8 to 1.The industry standard for the acid-test ratio is 1 to 1.
Instructions:
(1)Calculate the current ratio and quick ratio for each firm.
(2)Rank the firms in decreasing order of liquidity.
(3)Comment on Z-Mart's relative position.

Accepted Answer

The answer of The following information pertains to Z-Mart,its competition,and...

Question 13

You are a supervisor in the accounting department of Stellar Consulting.The person you just hired shows you the bank reconciliation prepared for March 31,as shown below.  In comparing the bank reconciliation to the Cash account in the General Ledger,you notice a problem.You investigate further and come up with some additional information as follows:
a.The Cash account in the General Ledger showed the following:   Instructions
1.Prepare a corrected bank reconciliation for March 31,2015.
2.Record the journal entries resulting from the corrected bank reconciliation.

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The answer of You are a supervisor in the accounting...

Question 14

A(n)______________ is a document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient.

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The answer of A(n)______________ is a document signed by the...

Question 15

The bank statement and relevant portions of Baldwin Company's cash records for the month ended June 30,2015 are given below.  Prepare the bank reconciliation at June 30,2015.

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The answer of The bank statement and relevant portions of...

Question 16

The acid-test ratio measures the _______________ of a firm.

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The answer of The acid-test ratio measures the _______________ of...

Question 17

An internal control system is all policies and procedures managers use to _______________,ensure reliable accounting,promote efficient operations,and encourage adherence to company policies.

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The answer of An internal control system is all policies...

Question 18

The bank statement and relevant portions of Quest Company's cash records for the month ended July 31,2015 are given below.  Prepare the bank reconciliation at July 31,2015.

Accepted Answer

The answer of The bank statement and relevant portions of...

Question 19

The following information was available for Anderson Company for the month ended May 31,2015.  Prepare a bank reconciliation for Anderson Company at May 31,2015.

Accepted Answer

The answer of The following information was available for Anderson...

Quiz 8: Internal Control and Cash

An employee is ________________ when a company purchases an insurance policy against losses from theft by that employee.

Annie's Attic reported the following information for September 30. Instructions: (1)Explain the purpose of the acid-test ratio. (2)Calculate the acid-test ratio to two decimals. (3)What does the acid-test ratio reveal about Annie's Attic?