1) Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31

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1) Due to an oversight, a company made no adjusting entry for accrued and unpaid employee wages of $24,000 on December 31. This oversight would:

Select one:

a. Overstate net income by $24,000.

b. Overstate assets by $24,000.

c. Understate net income by $24,000.

d. Have no effect on net income

e. Understate assets by $24,000.

2) A company had expenses other than cost of goods sold of $250,000. Determine sales and gross profit given cost of goods sold was $100,000 and net income was $150,000.

Select one:

a. Sales: $350,000; gross profit: $150,000

b. Sales: $350,000; gross profit: $50,000

c. Sales: $500,000; gross profit: $50,000

d. Sales: $400,000; gross profit: $500,000

e. Sales: $500,000; gross profit: $400,000

3. When two clerks share the same cash register, which internal control principle is violated?

Select one:

a. Maintain adequate records

b. Insure assets

c. Apply technological controls

d. Establish responsibilities

e. Bond key employees

4. At the end of the day, the cash register's record shows $1,250, but the count of cash in the cash register is $1,245. The correct entry to record the cash sales for the day is:

Select one:

a.

Cash	1,250
Sales		1,245
Cash Over and Short		5

b.

Cash	1,250
Sales		1,250

c.

Cash over and short	5
Sales		5

d.

Cash	1,245
Sales		1,245

e.

Cash	1,245
Cash Over and Short	5
Sales		1,250

5. At the end of the day, the cash register's record shows $1,000 but the count of cash in the register is $1,035. The proper entry to record this excess includes a:

Select one:

a. Credit to Cash for $35.

b. Debit to Cash for $35.

c. Credit to Cash Over and Short for $35.

d. Debit to Petty Cash for $35.

e. Debit to Cash Over and Short for $35.

6. The entry necessary to establish a petty cash fund should include:

Select one:

a. A debit to Petty Cash and a credit to Accounts Receivable.

b. A debit to Cash and a credit to Petty Cash.

c. A debit to Cash and a credit to Cash Over and Short.

d. A debit to Cash and a credit to Petty Cash Over and Short.

e. A debit to Petty Cash and a credit to Cash.

7. The entry to record reimbursement of the petty cash fund for postage expense should include:

Select one:

a. A debit to Petty Cash.

b. A debit to Cash Short and Over.

c. A debit to Supplies.

d. A debit to Postage Expense.

e. A debit to Cash.