1. Answer: False
The use of internal controls does not provide a guaranteed protection against losses but only a reasonable assurance and hence the given statement is false.
2. Answer: True
All the factors given are responsible for causing a difference between the bank statement balance and the business account balance and hence the statement is true.
3. Answer: False
TechCom should record the transaction of collection from RDA Electronics by debiting Cash and crediting Accounts Receivable-RDA Electronics. Hence the given statement is incorrect and false.
4. Answer: False
Under the aging of accounts receivable, the accounts receivable are grouped into buckets based on the number of days they are past due and the amount that is uncollectible is estimated based on a percentage that is predetermined on past data. Thus, each account receivable is not examined and hence the statement is false.
Per HOMEWORKLIB RULES the first 4 parts have been answered. Please post the remaining separately. Thank you.
The use of internal controls provides guaranteed protection against losses due to operating activities. True False...
1)The use of internal controls provides guaranteed protection against losses due to operating activities. True False 2)Factors that cause the bank statement balance of a çbeauioa account to be different from the business gbeauioeaccount balance include: outstanding cheques deposits in transit, deductions for bank fees, additions for interest, and errors. True False 3)TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. Tech Com should record the transaction as a debit to Accounts Receivable-RDA Electronics and a...
The use of internal controls provides guaranteed protection against losses due to operating activities. * 2 points O True False 2 points Factors that cause the bank statement balance of a chequing account to be different from the business chequing account balance include: outstanding cheques, deposits in transit, deductions for bank fees, additions for interest, and errors. * True O False TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as...
The shareholders can vote to pay themselves a dividend." True False Cumulative preferred shares carry the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders." True False Which of the following is NOT a principle of internal control? Responsibilities should be clearly established Adequate records should be maintained Responsibility for related transactions should be divided Assets should be insured and employees bonded Audits should always be conducted by employees...
The use of internal controls provides guaranteed protection against losses due to operating activities.* True or false?
During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect will this write-off have on TechCom's current year net income and balance sheet assuming the allowance method is 2 points used to account for bad debts? O No effect on net income or on total assets O Decrease in net income; no effect on total assets O Decrease in net income; decrease in total assets O...
TRUE/FALSE. Write 'T' if the statement is true il 1) Financing activities are transactions involving external sources of funding. 2) Expense accounts increase with a debit and decrease with a credit 3) Purchasing equipment using cash causes assets to increase 4) Liability accounts increase with a debit and decrease with a credit 6) 5) Borrowing cash from the bank causes assets to increase and liabilities to increase 6) Amounts owed to suppliers, employees, the government in the form of taxes,...
TB 08-14 TechCom has $40,000 in outstanding accounts ... TechCom has $40,000 in outstanding accounts receivable. Past experience suggests that 5% of outstanding receivables are uncollectible. The current balance in the allowance for doubtful accounts is $2,500 debit. The required adjusting journal entry includes a debit to bad debt expense for $4,500. True or False TrueFalse... During the current year, TechCom concluded that a customer's $4,400 account receivable was uncollectible and that the account should be written off. What effect...
TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to Cash. * O True O False The aging of accounts receivable examines each account receivable to estimate the amount that is uncollectible. * O True False The cost of an asset includes all normal and reasonable expenditures necessary to get it in place and ready for its intended use. * True...
Accounts receivable turnover measures * How long it takes to sell inventory on credit How often a company converts its average accounts receivable balance into cash during the period Measures the relationship of cash sales to credit sales How long it takes to sell inventory on credit and how often a company converts its average accounts receivable balance into cash during the period How often a company converts its average accounts receivable balance into cash during the period and measures...
Hello, I was wondering if you could help me with my True or False accounting questions? 1) Closing revenue and expense accounts at the end of the accounting period serves to make the revenue and expense accounts ready for use in the next period. True or False 2) Goods on consignment are goods shipped by their owner, called the consignee, to another party called the consignor. True or False 3) TechCom customer RDA Electronics paid off an 8,300 balance on...