Intacc

• Which statement is not true about reporting bank overdraft under IFRS?

  D. Bank overdraft can never be included as component of cash and cash equivalents
• A compensating balance

  C. Which is legally restricted and related to a short term loan is classified separately as current asset
• Cash equivalents do not include

  B. Treasury bonds
• The internal control feature specific to petty cash is

  D. Impres system
• A bank reconciliation is

  D. A schedule that accounts
• Which of the following items must be added to the cash balance per ledger in preparing a bank reconciliation.

  A. Note receivable collected by bank in favor of the depositor
• Which of the following would be added to the balance per bank statement to arrive at the correct cash balance?

  C. Deposit in transit
• If the balance shown in the bank statement is less than the correct cash balance and neither the entity nor the bank has made any errors thre mumust be

  A. Deposits credited by the bank nut not yet recorded
• In determining the amoamount of deposits in transit at the end of the period the following are true except

  A. The amount of deposits acknowledged by the bank is equal
• In determining the amount of checks cleared through the bank

  D. Errors involving overstatement of checks during the previous period
• Outstanding checks at the end of the current month

  B. Addition to the bank disbursement
• Outstanding checks at the beginning of the current month

  C. Deduction from the bank disbursement
• On computing for the ending deposit in transit

  B. The total a,ount of deposits made to the bank
• Trade receireceivables are classified as current assets

  D. Within one year or within the operating cycle whichever is

  longer
• Where the operating cycle extends beyond one year because of normal credit terms

  A. The entire receivables are classified as current
• Which accounting principle primarily supports

  C. Matching principle
• When the allowance method is used

  A. Decrease both accounts receivable and the allowance
• Under the alloallowancemethod

  A. Affects neither net income nor working capital
• A debit balance in the allowance for doubtful accaccounts

  C. May occur before the year end adjustments
• This party is the beneficiary

  B. Payee
• Determine which of the following

  I. Notes receivable are considered

  II. Not3s receivable are considered

  A. I only
• Setting other inputs constant

  A. Annually
• On July 1 of the current year

  B. 4% of the face amount of the note
• Which of the following is used ro account for probable sales discounts

  A. Factor hold back
• Which of the following is true when accounts receivable are factored

  C. The factory assumes the risk
• After being held for 40 days

  B. Maturity value less the discount at 15%
• Which of the following should not be reported as inventory

  D. Machinery
• The use of purchase discount

  A. Invoice price
• The use of a discount lost account

  D. Invoice price less the purchase discount
• The valuation of inventory

  B. Would exclude all overhead
• What is cognigned inventory

  C. Goods shipped but title remains
• During periods of rising prices

  C. Result in the same ending inventory
• When different commodities are purchased

  A. Relative sales price
• Which statement is incorrect regarding

  LCNRV?

  B. In most situations
• The gross margin method

  B. Internal as well as external year end
• With regard to the retail inventory method

  C. The retail method results
• Which financial attribute

  D. Present value
• The retail inventory method would include which of the following

  B. Purchase returns
• The gross profit method assumes that

  D. The relationship
• Which statement is true regarding inventory write-down

  B. Separate reporting