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In preparing a hank reconciliation, outstanding checks are Deducted from the balance per hooks Deducted from the balance per bank Added to the balance per books Added to the balance per bank None of die above The factor which determines whether or not goods should be included in a physical count of inventory is legal title. management's judgment physical possession. whether or not the purchase price has been paid none of the above Which of the following should be included m a physical inventory of ABC' company? Goods in transit to another company shipped FOB shipping point Goods in transit from another company shipped FOB shipping point Goods held on consignment from another company. Both b and c above. None of the above. 10. A company maintains the asset account. Cash in Bank, on its books. The company's account on the bank s book is a An owner's equity account An asset account A contra asset account A liability account, None of the above Control over cash disbursements (payments) is generally more effective when: All bills are paid by the owner Disbursements (payments) arc made by check All bills are paid in cash Disbursements (payments) are made by the accounts payable clerk N of the above All of the following items would be reported as other expenses and losses except: Loss on sale of equipment Loss from employees' strike Interest expense Freight out None of the above On July 9. Sheb Company sold merchandise on account to Wool Company for $3.000, terms 1/ 10. n/60 Sheb received payment on July 18. The entry by Sheb on July 18 will include: credit to Cash for $2, 970 A debit to Accounts Receivable for $3,000 A debit to Cash for $3.030 A debit to Sales Discounts for $30 None of the above Which of the following statements is correct with respect to inventories? Under UFO. the ending inventory is based on the latest units purchased. Under FIFO, the ending inventory is based on the latest units purchased. The LIFO method assumes that the costs of the earliest good purchased ate the first goods sold The FIFO method assumes that the costs of the earliest goods purchased are the last to be sold. None of the above

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