ACCT 2000 Exam| 70 Questions with
Verified Answers
In late August, a company provided one of its customers with services worth $500; however,
the company does not expect payment from the customer for those services until early
September. What adjustment should the company make in August to denote this delivery of
services? - ✔✔The company should increase both Accounts Receivable and Service
Revenue for $500
Starshine Industries has a five-day workweek (Monday through Friday) and a September 30
year-end. Normal weekly wages amount to $24,000. If September 30 is a Wednesday, what is
the appropriate adjustment at year-end? - ✔✔Increase Salaries and Wages Expense
$14,400; Increase Salaries and Wages Payable $14,400
Juanita has performed $750 of consultancy for a client but has not billed the client as of the
end of the accounting period. The adjustment in Juanita's books will be to ______________. -
✔✔increase Accounts Receivable and increase Service Revenue
Which of the following statements is true regarding an adjustment for unearned revenue? -
✔✔A liability and a revenue account are modified
Which account title will accompany Salaries and Wages Expense in an adjustment? -
✔✔Salaries and Wages Payable
A company purchased office supplies costing $3,000 and increased Supplies for the full
amount. At the end of the accounting period, a physical count of office supplies revealed $900
still on hand. Which of the following is the adjustment that should be made by the company? -
✔✔increase Supplies Expense $2,100; decrease Supplies $2,100
How will a company recognize the supplies used during the period? - ✔✔increase
Supplies Expense, decrease Supplies
, Upon receiving the monthly bank statement, John Smith, controller of Cannon Incorporated,
noted an NSF check for $325 from Robbins Company. Which adjustment will Smith make to
update the relevant accounts? - ✔✔Increase Accounts Receivable - Robbins Company
$325; decrease Cash $325
Carter Conglomerates, a national distribution company, has multiple bank accounts. This
practice creates _______________ and ______________. - ✔✔more efficient
operations;
better control
Manny Howard wrote a check for $720 for advertising expenses but recorded the amount as
$270 in the check register. The adjustment to correct the error is to ___________. -
✔✔increase Advertising Expense $450
Which of the following affects the cash balance per bank? - ✔✔outstanding checks
What does a check marked NSF mean? - ✔✔not sufficient funds
Don Devious works as a purchasing agent for File Company. Don has been making purchases
for himself using company funds. Which of the following would have been most effective at
preventing this fraud? - ✔✔a voucher system
When would control over cash disbursements generally be more effective? -
✔✔when payments are made by check
Mary Moore, ________ for Dexter Company, goes to the bank daily to make deposits. -
✔✔head cashier
At what point does the voucher system begin? - ✔✔authorization
Verified Answers
In late August, a company provided one of its customers with services worth $500; however,
the company does not expect payment from the customer for those services until early
September. What adjustment should the company make in August to denote this delivery of
services? - ✔✔The company should increase both Accounts Receivable and Service
Revenue for $500
Starshine Industries has a five-day workweek (Monday through Friday) and a September 30
year-end. Normal weekly wages amount to $24,000. If September 30 is a Wednesday, what is
the appropriate adjustment at year-end? - ✔✔Increase Salaries and Wages Expense
$14,400; Increase Salaries and Wages Payable $14,400
Juanita has performed $750 of consultancy for a client but has not billed the client as of the
end of the accounting period. The adjustment in Juanita's books will be to ______________. -
✔✔increase Accounts Receivable and increase Service Revenue
Which of the following statements is true regarding an adjustment for unearned revenue? -
✔✔A liability and a revenue account are modified
Which account title will accompany Salaries and Wages Expense in an adjustment? -
✔✔Salaries and Wages Payable
A company purchased office supplies costing $3,000 and increased Supplies for the full
amount. At the end of the accounting period, a physical count of office supplies revealed $900
still on hand. Which of the following is the adjustment that should be made by the company? -
✔✔increase Supplies Expense $2,100; decrease Supplies $2,100
How will a company recognize the supplies used during the period? - ✔✔increase
Supplies Expense, decrease Supplies
, Upon receiving the monthly bank statement, John Smith, controller of Cannon Incorporated,
noted an NSF check for $325 from Robbins Company. Which adjustment will Smith make to
update the relevant accounts? - ✔✔Increase Accounts Receivable - Robbins Company
$325; decrease Cash $325
Carter Conglomerates, a national distribution company, has multiple bank accounts. This
practice creates _______________ and ______________. - ✔✔more efficient
operations;
better control
Manny Howard wrote a check for $720 for advertising expenses but recorded the amount as
$270 in the check register. The adjustment to correct the error is to ___________. -
✔✔increase Advertising Expense $450
Which of the following affects the cash balance per bank? - ✔✔outstanding checks
What does a check marked NSF mean? - ✔✔not sufficient funds
Don Devious works as a purchasing agent for File Company. Don has been making purchases
for himself using company funds. Which of the following would have been most effective at
preventing this fraud? - ✔✔a voucher system
When would control over cash disbursements generally be more effective? -
✔✔when payments are made by check
Mary Moore, ________ for Dexter Company, goes to the bank daily to make deposits. -
✔✔head cashier
At what point does the voucher system begin? - ✔✔authorization
