100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Bookkeeping for Small Business Questions With Solutions 100% Correct $17.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Bookkeeping
  4.  
  5. Bookkeeping

Exam (elaborations)

Bookkeeping for Small Business Questions With Solutions 100% Correct
 0 purchase
  • Course
  • Bookkeeping
  • Institution
  • Bookkeeping

Bookkeeping for Small Business Questions With Solutions 100% Correct 1. Each accounting transactions begins with some type of source document, which differs depending on the type of transaction. Which source document is not a purchases source document? Incorrect A) Vendor invoices B) Purch...

[Show more]

Preview 4 out of 33  pages

Document information

  • September 15, 2024
  • 33
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • bookkeeping for small business
  • questions with solutions 100 correct

Written for

  • Bookkeeping
  • Bookkeeping

Seller

avatar-seller
StuviaTutors

Reviews received

Content preview

Bookkeeping for Small Business Questions
With Solutions 100% Correct

1. Each accounting transactions begins with some type of source document, which differs

depending on the type of transaction. Which source document is not a purchases source

document?

Incorrect

A) Vendor invoices

B) Purchase orders

C) Packing slips

D) Sales orders


E) Receiving reports D) Sales orders




2. Which internal control involves allocating bookkeeping tasks among personnel so that one

individual does not have the ability to make an accounting error (either intentionally or

unintentionally) and also cover it up? This principle implies that the person with physical access

to cash or other moveable assets (investments or inventory) should not also be involved with the

related record keeping.

Incorrect

A) Segregation of duties

B) Restricted access

, Bookkeeping for Small Business Questions
With Solutions 100% Correct
C) Document controls

D) Processing controls


E) Reconciliation controls A) Segregation of duties




3. Which cash receipts system keeps details of only the current period's activity and groups all

other open items into a single beginning balance amount?

Incorrect

A) Open item system

B) Balance Forward system

C) Order-entry system


D) Point of sale system B) Balance Forward system




4. Which of the following is not a recommendation for controlling and safeguarding receipts

when processing mail receipts?

Incorrect

A) The company should assign someone with no other cash receipt or processing

B) The secretary or receptionist opening the mail should separate customer

C) The secretary or receptionist should forward the actual checks to accounting

, Bookkeeping for Small Business Questions
With Solutions 100% Correct
D) The secretary or receptionist should prepare the original deposit slip along with a C)

The secretary or receptionist should forward the actual checks to accounting




5. The bank statement reconciliation process is a very effective after-the-fact internal control

tool. Moreover, the process is crucial to many small businesses since their accounting systems

are often cash-driven. Which of the following statements regarding the bank statement

reconciliation process is false?

Incorrect

A) The bank statement reconciliation helps detect errors (both the company's and

B) The bank statement reconciliation reveals bank debits and credits that have not

C) The bank statement reconciliation should be performed by someone with other


D) The bank statements should be received by the person responsible for receiving C) The

bank statement reconciliation should be performed by someone with other




6. Reconciling the accounts receivable subsidiary ledger (or aged trial balance) to the accounts

receivable account in the general ledger is crucial to most small businesses. If differences

between the aged trial balance and subsidiary ledger are not resolved, either the company's

financial statements or billing statements mailed to customers (or both) are misstated. If

, Bookkeeping for Small Business Questions
With Solutions 100% Correct
differences go back beyond the current month, locating and resolving the individual differences

becomes increasingly difficult and time-consuming. Which of the following statements is false?

Incorrect

A) Small businesses can gain some assurance that cash receipts journals and sales journals were

posted to the general ledger by recalculating the accounts receivable general ledger balance.

B) Accounting persons recalculate the ending general ledger balance by starting with the

beginning general ledger balance, subtracting totals per the sales journals, B) Accounting

persons recalculate the ending general ledger balance by starting with the beginning general

ledger balance, subtracting totals per the sales journals, adding totals per the cash receipts

journals, and adjusting for any other transactions posted to the general ledger.




7. Which of the following is not a processing and recording purchases activity?

Incorrect

A) Processing invoices

B) Recording invoices in the accounting system

C) Disbursing cash


D) Bank reconciliation D) Bank reconciliation

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller StuviaTutors. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $17.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69411 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$17.99
  • (0)
Add to cart
Added