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1. The current assets of most companies are usually made up of: Enter question
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.
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2. Which of the following is the correct balance sheet presentation for current assets?
A. Cash, inventories, account receivables, prepaid expenses. 20 questions remaining
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 reconciling the cash balance per books with the balance shown on the bank My Textbook Solutions
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 reconciling items would an adjusting entry be necessary?
A. A deposit in transit. Student Numerical...
B. An error by the bank. Solutions...
C. Outstanding checks. 4th Edition 6th Edition
D. A bank service charge.
5. When a manufacturer invests in 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 uctuate signi cantly.
D. risk avoidance is of great importance. Calculus
6. A cash equivalent is a current asset that: 9th Edition

A. Will be converted to cash within one year. View all solutions

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 the above.
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7. The accounting concept or principle applied when the cost of short-term marketable securities is
adjusted to market value is:
can help right now
A. objectivity.
B. matching revenue and expense. Tihamiyou B.
C. original cost. University of Orego…
D. consistency.
8. The accrual of interest on short-term marketable securities results in: Shalini A.
A. an increase in current assets and a decrease in net income. Birla Institute of Sci…
B. an increase in current assets and an increase in net income.
C. an increase in noncurrent assets and an increase in liabilities.
Kenny T.
D. an increase in current liabilities and an increase in net income. California State Univ…
9. The accounting concept or principle applied when an allowance is provided for estimated uncollectible
accounts receivable is:
A. consistency. Find me a tutor
B. matching revenue and expense.
C. original cost.
D. objectivity.
10. The allowance for uncollectible accounts is a(n):
A. asset.
B. contra current asset.
C. expense.
D. contra revenue.
11. Bad debt expense is recognized in the same accounting period as the revenue that is related to the
receivable because:
A. the accounts receivable asset should be stated at original cost.
B. the exact amount of the losses from bad debts is known.
C. revenues should be stated at realizable value.
D. all costs incurred in the current period should be subtracted from current period revenues.
12. When an uncollectible account receivable is written off against the allowance for bad debts:
A. total current assets decrease and expenses increase.
B. total current assets are not affected.
C. total current assets decrease and expenses decrease.
D. current assets decrease and expenses are not affected.
13. With respect to the write-off of an uncollectible account receivable against the allowance for bad debts,
a sound system of internal control would require:
A. the write-off be approved by two employees.
B. an investigation of why credit was extended to this customer in the rst place.

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C. a lawsuit to be initiated to recover the uncollectible amount.
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D. the write-off to be made withinTextbook after the dateExpert
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14. An organization's system of internal control is designed primarily to:

A. ensure that no employees steal the organization's property.
B. increase efficiency by letting one employee handle all aspects of a transaction from beginning to end.
C. ensure that the organization's balance sheet will always balance.
D. provide an operating framework for all employees as they work to achieve the organization's goals.
15. If an organization purchases $700 of supplies on account, with terms of 2/15, n50:
A. $650 must be paid within 15 days of the invoice date.
B. $698 must be paid within 50 days of the invoice date.
C. $686 can be paid within 15 days of the invoice date, or $700 must be paid within 50 days of the invoice
date.
D. $686 can be paid within 15 days of the invoice date, or $714 must be paid within 50 days of the invoice
date.

Expert Answer

Shivam Sinha answered this

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1 b. cash and assets expected to be converted to cash within a year.

2. A. . Cash, inventories, account receivables, prepaid expenses.

3. A. determine the amount of cash in the account actually available to the entity

4. A. A deposit in transit.

5.B. the securities are likely to have a maturity date more than a year in the future.

6. C. Is readily convertible into cash with a minimal risk

7. C. original cost

8. B. an increase in current assets and an increase in net income.

9. B. matching revenue and expense.

10. B. contra current asset.

11. D. all costs incurred in the current period should be subtracted from current period revenues

12.B. total current assets are not affected

13.A. the write-off be approved by two employees.

14. D. provide an operating framework for all employees as they work to achieve the organization's goals

15. C. $686 can be paid within 15 days of the invoice date, or $700 must be paid within 50 days of the
invoice date.

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Q: The current assets of most companies are usually made up of: A. assets that are currently used in the operations of
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