Podcast
Questions and Answers
What is a compensating balance related to?
What is a compensating balance related to?
- A temporary investment as collateral for a loan
- A balance in a payroll checking account
- A fund in a bank account that cannot be spent
- A minimum deposit required to be maintained in connection with a borrowing arrangement (correct)
What is a characteristic of a cash equivalent?
What is a characteristic of a cash equivalent?
- It is a type of stock investment with a high market value
- It is a type of loan with a high interest rate
- It is a long-term investment with a fixed interest rate
- It is a short-term, highly liquid investment readily convertible into a known amount of cash (correct)
How long does an investment need to mature to be considered a cash equivalent?
How long does an investment need to mature to be considered a cash equivalent?
- 90 days or less (correct)
- Less than 6 months
- Less than 60 days
- Less than 30 days
What is NOT classified as cash and cash equivalents?
What is NOT classified as cash and cash equivalents?
What is true about a compensating balance?
What is true about a compensating balance?
What is the primary characteristic of a cash equivalent?
What is the primary characteristic of a cash equivalent?
What is the major purpose of an imprest petty cash fund?
What is the major purpose of an imprest petty cash fund?
Which of the following is not a cash equivalent?
Which of the following is not a cash equivalent?
What is the internal control feature specific to petty cash?
What is the internal control feature specific to petty cash?
In reimbursing the imprest petty cash fund, which of the following statements is true?
In reimbursing the imprest petty cash fund, which of the following statements is true?
A petty cash fund is primarily used for?
A petty cash fund is primarily used for?
When is the imprest petty cash fund account debited?
When is the imprest petty cash fund account debited?
How are entire receivables classified?
How are entire receivables classified?
In the case of long-term real estate installment sales, how are the receivables shown?
In the case of long-term real estate installment sales, how are the receivables shown?
Which accounting principle primarily supports the use of allowance for doubtful accounts?
Which accounting principle primarily supports the use of allowance for doubtful accounts?
Why is the allowance method preferred over the direct writeoff method of accounting for bad debts?
Why is the allowance method preferred over the direct writeoff method of accounting for bad debts?
When would an entry debiting accounts receivable and crediting allowance for doubtful accounts be made?
When would an entry debiting accounts receivable and crediting allowance for doubtful accounts be made?
Which method is more theoretically correct for recording cash discounts related to accounts receivable?
Which method is more theoretically correct for recording cash discounts related to accounts receivable?
What cost is excluded from the cost of inventory?
What cost is excluded from the cost of inventory?
Which of the following costs should not be included in the cost of inventory?
Which of the following costs should not be included in the cost of inventory?
What is included in the cost of bringing inventory to its present location and condition?
What is included in the cost of bringing inventory to its present location and condition?
What type of property must be classified as inventory?
What type of property must be classified as inventory?
How should a property developer classify properties held for sale in the ordinary course of business?
How should a property developer classify properties held for sale in the ordinary course of business?
How should factory supplies to be consumed in the production process be reported?
How should factory supplies to be consumed in the production process be reported?
What is the equation that represents the concept of goods to be accounted for?
What is the equation that represents the concept of goods to be accounted for?
What is the purpose of the gross profit method in relation to inventory valuation?
What is the purpose of the gross profit method in relation to inventory valuation?
What is an advantage of the retail inventory method?
What is an advantage of the retail inventory method?
How are markdowns typically treated in the computation of the cost to retail ratio using the retail method?
How are markdowns typically treated in the computation of the cost to retail ratio using the retail method?
What is the purpose of comparing the amount of purchases and sales from one period to the next?
What is the purpose of comparing the amount of purchases and sales from one period to the next?
What is the relationship between the sum of beginning inventory and net purchases, and the goods not sold?
What is the relationship between the sum of beginning inventory and net purchases, and the goods not sold?
