6. Which of the following is not an example of internal control? A. Customer sat
ID: 2477044 • Letter: 6
Question
6. Which of the following is not an example of internal control?
A. Customer satisfaction surveys
B. Bonding employees
C. Periodic bank reconciliations
D. Use of passwords to restrict access to computer systems
7. The owner(s) of a business are not taxed on the profits of the business if the business is a:
A. public partnership.
B. partnership.
C. sole proprietorship.
D. corporation.
8. A company’s financial records at the end of the year including the following amounts:
Cash $ 70,500
Accounts receivable 28,500
Supplies 4,500
Accounts payable 10,500
Notes payable 5,250
Retained earnings, beginning of year 17,500
Common stock 45,000
Service revenue 49,750
Wages expense 8,500
Advertising expense 5,500
Rent expense 10,500
What is the amount of total assets to be reported on the balance sheet at the end of the year?
A. $121,000.
B. $114,000.
C. $153,250.
D. $103,500.
9. A corporate charter specifies that the company may sell up to 36 million shares of stock. The company issues 28 million shares to investors and later repurchases 11.0 million shares. The number of issued shares after these transactions have been accounted for is:
A. 25 million shares.
B. 18 million shares.
C. 28 million shares.
D. 17 million shares.
10. Your company has net sales of $468,300 and average net receivables of $111,500 for the year. Which of the following statements is correct? (Round all calculations to one decimal place.)
A. The receivables turnover ratio is 4.2 and the days-to-collect is 0.01.
B. The receivables turnover ratio is 0.2 and the days-to-collect is 1,520.
C. The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
D. The receivables turnover ratio is 0.2 and the days-to-collect is 87.6.
Explanation / Answer
6.
A.Customer satisfaction surveys is not an internal control example.
7.
sole proprietorship- in this income would be included in owner income and has to pay tax
8.
Cash $ 70,500
Accounts receivable 28,500
Supplies 4,500
=103,500
9
C. 28 million shares ,treasury shares would be part of issued stock but not outstanding stock till it has been retired.
10.
C. The receivables turnover ratio is 4.2 and the days-to-collect is 86.9.
AR Turnover Ratio Net Credit Sales / Avg. Account Receivables 468300 / 111500 4.20 Net Credit Sales 468,300 Avg. Account Receivables 111,500Related Questions
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