In the month of March, Cooper Company wrote checks in the amount of $277,500. In April, checks in the amount of $379,740 were written.

In the month of March, Cooper Company wrote checks in the amount of $277,500. In April, checks in the amount of $379,740 were written. In March, $254,040 of these checks were presented to the bank for payment, and $326,490 in April. What is the amount of outstanding checks at the end of April? $53,250 $23,460 $76,710 $106,5001 pointsÿQuestion 10ÿIf a company’s cash budget projected a cash shortage, the company would have to: make fewer purchases of inventory so they could control costs. lay off workers for that period. arrange to borrow the necessary cash for that period. cut salaries for that period.1 pointsÿQuestion 11ÿLamp Company purchases are $1,750,000 in the third quarter and $2,250,000 in the fourth quarter. Forty percent of the purchases are paid in cash as they occur, and the balance is paid in the following quarter. The budgeted cash payments for purchases in the fourth quarter are: $2,400,000. $2,250,000. $1,950,000. $1,800,000.1 pointsÿQuestion 12ÿAn internal control over blank checks is that they should be kept in a locked safe. should be pre-signed. should not be pre-numbered. all of the above.1 pointsÿQuestion 13ÿA bank statement is useful to let a depositor know the financial position of the bank as of a certain date. as it serves as a credit reference letter written by the depositor’s bank. as an invoice from the bank for services rendered. to show the activities that increased or decreased the depositor’s account balance.1 pointsÿQuestion 14ÿWhich section of a bank reconciliation lists the totals for NSF checks? Addition to the balance per books Deduction from the balance per bank Addition to the balance per bank Deduction from the balance per books1 pointsÿQuestion 15ÿA deposit in transit is a deposit that has been recorded on the company’s books but not yet by the bank. has been recorded by the bank but not yet by the company. has not been recorded by the bank or the company. has been mailed by the customer but not yet received by the company.1 pointsÿQuestion 16ÿA company sells $700,000 of accounts receivable to a factor for cash less a 3% service charge. The entry to record the sale should NOT include a debit to Interest Expense for $21,000. debit to Cash for $679,000. debit to Service Charge Expense for $21,000. credit to Accounts Receivable for $700,000.1 pointsÿQuestion 17ÿThe receivables turnover ratio is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period. can be used to compute the average collection period. is a method of evaluating the solvency of net accounts receivable. is only important to internal users of accounting information.1 pointsÿQuestion 18ÿThe financial statements of the Pilot Manufacturing Co. report net sales of $5,000,000 and accounts receivable of $500,000 and $300,000 at the beginning of the year and end of year, respectively. What is the receivables turnover ratio for Pilot? 7 times 10 times 16.7 times 12.5 times1 pointsÿQuestion 19Klein Co. holds Pan Inc.’s $30,000, 120 day, 8% note. The entry made by Klein Co. when the note is collected, assuming no interest has previously been accrued, is: Cash30,000ÿNotes Receivableÿ30,000 Accounts Receivable30,800ÿNotes Receivableÿ30,000Interest Revenueÿ800 Cash30,800ÿNotes Receivableÿ30,000Interest Revenueÿ800 Accounts Receivable30,800ÿCashÿ30,000Interest Revenueÿ800