problem 1: When a bill is due to be paid, an accounting employee pulls a voucher from the _______ file and prepares a __________ for the treasurer to sign.
a) tickler; check
b) cash receipts; check
c) tickler; voucher
d) registration; report
problem 2: Petty cash is usually shown on the balance sheet as:
a) a noncurrent asset.
b) Petty Cash.
c) a liability.
d) Cash.
problem 3: Cash forecasting is an aspect of which of the following?
a) conducting audits
b) an integrated cash management system
c) preparing a bank reconciliation
d) collecting franchise fees
problem 4: Danny Default is the maker of a note to the Long-Stay Hotel for his stay there. On the note's maturity date, Danny has not paid the note. Now the note is called a:
a) dishonored note.
b) non-interest-bearing note.
c) discounted note.
d) debtor.
problem 5: The Wayside Hotel uses the direct prepare-off method of accounting for bad debts. If the general manager of the hotel determines that a $700 debt is uncollectible and the current balance of Provision for Doubtful Accounts is $100, the journal entry to recognize this bad debt would involve:
a) debiting Accounts Receivable for $700.
b) crediting Accounts Receivable for $700.
c) crediting Provision for Doubtful Accounts for $600.
d) debiting Provision for Doubtful Accounts for $600.
problem 6: Using the allowance method of accounting for bad debt expense _________ the carrying value of Accounts Receivable.
a) increases
b) cancels out
c) decreases
d) has no effect on
problem 7: Net credit sales for the Breakeven Diner for the past year stands at $4,500. If the diner's manager uses the percentage of sales method of estimating bad debt and uses 1.5 percent for this purpose, the amount of bad debt for the year would be:
A) $9.50
B) $67.50
C) 18.40
D) $45.00
problem 8: A 60-day note for $5,000 with an interest rate of 12 percent per annum will have a maturity value of _____________. (Assume that there are 360 days in a year for the purpose of calculating the interest.)
A) $6,300
B) $5,600
C) $5,000
D) $5,100
problem 9: An interest-bearing note receivable dated April 14 matures on July 23. The principal amount is $10,000, the annual interest rate is 10 percent, and the total interest income for the note is _____________. (Assume that a year has 360 days for the purpose of calculating interest.)
A) $1,000
B) $273.97
C) $277.78
D) $280
problem 10: Which of the following is a policy or practice that endangers the security of a hospitality firm's inventory?
a) There is a separation between the custody of the inventory records and custody of the inventory.
b) A daily inventory of high-priced items must be taken.
c) The accountant who maintains the inventory records may not access the inventory itself.
d) A physical inventory is taken only once every five years.
problem 11: Inventory value is used to find out _____________, which in turn is used to find out gross profit. Answer
A) SALES REVENUE
B) COST OF GOODS SOLD
C) COST OF GOODS USED INTERNALLY
D) PURCHASES