Bank Reconciliation and Financial Accounting, Study notes of Financial Accounting

Download Bank Reconciliation and Financial Accounting and more Study notes Financial Accounting in PDF only on Docsity! SI Thursday Feb 26 Chapter 6 1. What are the three types of business? 2. Mountain Gear, Inc. buys bikes, tents, and climbing supplies from Rugged Rock Corporation for sale to consumers. What type of company is Mountain Gear? 3. ______________ are short-term, highly liquid investments with three months or less to maturity. 4. Which of the following does not enhance internal control? a. Assigning different duties to different employees b. Ensuring adequate documentation is maintained c. Allowing access only when required to complete assigned duties d. None of the above- all enhance internal control 5. Upon review of your company’s bank statement, you discover that you recently deposited a check from a customer that was rejected by your bank as NSF. Which of the following describes the actions to be taken when preparing your company’s bank reconciliation? Balance per Bank Balance per book a. Decrease no change b. Increase decrease c. No Change Decrease d. Decrease Increase 6. Upon review of the most recent bank statement, you discover that a check was made out to your supplier for $76 but was recorded in your Cash and Accounts Payable accounts as $67. Which of the following describes the actions to be taken when preparing your bank reconciliation? Balance per Bank Balance per book a. Decrease no change b. Increase decrease c. No Change Decrease d. Decrease Increase 7. What is the equation for COGS? 8. What is the equation for COGAFS? 9. Supply the missing dollar amounts for the 2008 income statement for each of the following independent cases. Sales Total Gross Selling & Income from Cases Revenue Beg Inv Purchases Available End Inv COGS Profit General Exp Operations A $ 800 $ 100 $ 700 ? $ 500 ? ? $ 200 ? B $ 900 $ 200 $ 700 ? ? ? ? $ 150 $ - C ? $ 150 ? ? $ 250 $ 200 $400 $ 100 ? D $ 800 ? $ 600 ? $ 250 ? ? $ 250 $ 100