S. The allowance method based on the idea that a given percent of a company\'s c
ID: 2568081 • Letter: S
Question
S. The allowance method based on the idea that a given percent of a company's credit sal period is uncollectible is: B. The aging of accounts receivable method. C. The percent of accounts receivable method D. The percent of sales method E. Direct write-off method 6 Preparing a bank reconciliation on a monthly basis is an example of A. Protecting assets by proving the accuracy of cash records B. Separation of duties C. A technological control. D. Establishing responsibility. E. Poor internal control. 7· The cost of land would not include: A. Fees for insuring the title. B. Purchase price. C. Costs of removing existing structures D. Cost of parking lot lighting. 8. The person who signs a note receivable and promises to pay the principal and interest is the: A. Receiver. B. Maker. C. Payee D. Holder. E. Owner. 9. A voucher is an internal document or file: A. Prepared after an invoice is received B. Prepared before the company orders goods to make sure that all goods are being orde from an approved vendor list. C. Takes the place of a bank check. D. Used as a substitute for an invoice if the supplier fails to send one. E. Used to accumulate information needed to control cash disbursements and to ensur transactions are properly recorded. Depletion is A. The process of allocating the cost of intangibles to periods when they are used B. Also called amortization. C. The process of allocating the cost of natural resources to the period when it is c D. An increase in the value of a natural resource when incurred. E. Calculated using the double-declining balance method.Explanation / Answer
5.
Correct answer is D. The percent of sales method
Since the expected uncollectible is determined as the percentage of the credit sales, it is called The percentage of sales method.
6.
Correct answer is A. Protecting assets by proving accuracy of cash records.
Bank reconciliation ensures that the cash records of the company are correct and accurate.
7.
Correct answer is D. Cost of parking lot lighting
The cost of parking lots and other structures in the parking lot is capitalized as the Land improvement and Leasehold improvement rather than the cost of Land.
8.
Correct answer is B. Maker
The person who owes the money makes the note and hand it over to the payee.
9.
Correct answer is E. Used to accumulate information needed to control cash disbursements and to ensure that transactions are properly recorded.
A voucher is the prepared for each and every transaction that takes place in the organisation and is signed and authorized by the competent authorities.
10.
Correct answer is C. The process of allocating the cost of natural resources to the period when it is consumed.
The natural resources such as Mines and Oil reserves are depleted over their useful life using depletion.
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