What is the purpose of keeping a change fund in a business? to pay balance to cu
ID: 2399771 • Letter: W
Question
What is the purpose of keeping a change fund in a business?
to pay balance to customers
to meet smaller expenses in the business
to pay daily wages
none of the above
2 points
QUESTION 2
In a petty cash register any amount of cash gained or lost through errors is called a
cash over account.
cash short account.
petty cash account.
cash short & over account.
2 points
QUESTION 3
The total cash in a cash register drawer minus the change fund is:
the total sales.
the total cash sales from the cash register tape.
the credit sales.
the change fund.
2 points
QUESTION 4
The original cost of an asset minus the accumulated depreciation is known as the:
book value.
market value.
original value.
depreciation.
2 points
QUESTION 5
The amount to be depreciated divided by the estimated useful life comprise the:
annual depreciation expenses.
accumulated depreciation.
partial depreciation.
market value of an asset.
2 points
QUESTION 6
What will the annual depreciation be under the straight line method if the amount to be depreciated is $50,000, and the estimated useful life of an asset is 10 years?
$50,000
$20,000
$10,000
$5,000
2 points
QUESTION 7
Which accounts receivable account can a business not collect?
Uncollectible Account
Accounts Receivable Account
Accounts Payable Account
Expense Account
2 points
QUESTION 8
Which account is to be debited to write off uncollectible receivable?
accounts receivable account
accounts payable account
uncollectible expense account
cash in bank account
2 points
QUESTION 9
This method of accounting for uncollectible accounts matches the estimated uncollectible account expense with sales made during the same period:
Direct write off
Allowance
Percentage of net sales
Aging of Accounts Receivable
2 points
QUESTION 10
What is the maturity value of a bill whose principal is $50,000, interest rate is 8%, and term is 60 days?
$50,657.52
$50,000
$657.52
$60,657.52
2 points
QUESTION 11
The cost of inventory at the end using LIFO is $22,560 and the market price is $20,530. Using the lower-of-cost-or-market rule, what inventory cost should appear in the financial statement?
$22,560
$20,530
$43,090
$2,030
2 points
QUESTION 12
On July 7, Mr. Rex signed a 90-day, 10% note with Federal Bank for $20,000. What will be the note's maturity date?
October 5
September 5
September 30
July 7
2 points
QUESTION 13
The sales total is $56,000, sales discount is $1,000, sales return is $5,000, and the estimated percentage of uncollectible accounts is 1.5%. What will be the final uncollectible amount?
$5,000
$6,000
$750
$7,500
2 points
QUESTION 14
What will be the depreciation, via the straight line method, if the cost of a plant is $43,250, estimated disposal value is $3,250, and the estimated useful life of plant is five years?
$40,000
$4,000
$3,250
$8,000
2 points
QUESTION 15
If a loan's principal is $40,000, interest rate is 8%, and the term is 90 days, what will the interest payable be on the maturity date?
$789.04
$889.04
$989.04
$689.04
to pay balance to customers
to meet smaller expenses in the business
to pay daily wages
none of the above
Explanation / Answer
1. Option B
Change fund is maintained to meet day to day smaller expenses in the business. Seperate account is created and maintained for this purpose.
2. Option D
During petty cash replenishing, there's sometimes difference in available balance and book balance This difference is adjusted using cash short and over account
3. Option A
Total sales + change fund = Total cash in cash register.
So, Total cash in cash register - change fund = Total sales
4. Option A
When accumulated depreciation is deducted from cost of asset, we arrive at Book value(carrying value) of asset.
As per chegg answering guidelines I answered first 4 questions
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