Answer the following statements true (T) or false (F)
1. Journal entries that arise from reconciling items on the book side of the bank reconciliation include either a debit to Cash or a credit to Cash.
2. Cash equivalents are included in the calculation of the cash ratio.
3. A cash equivalent is a highly liquid investment that can be converted into cash in one year or less.
4. Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.
5.Checking accounts and money market accounts are examples of cash equivalents.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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Uniform Supply accepted a $4,800, 90-day, 10% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on December 31, to record the accrued interest on the note?
A. Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20. B. Debit Interest Receivable $20; credit Interest Revenue $20. C. Debit Cash $100; credit Notes Receivable $100. D. Debit Interest Receivable $100; credit Interest Revenue $100. E. Debit Cash $20; credit Notes Receivable $20.
HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW's processors as being of "poor quality". As a result, HNW's management team has begun to analyze all costs associated with their food processors in more detail, and the following data has been compiled: Scrap costs $ 80,000 Quality training 75,000
Warranty claims 100,000 Rework costs 50,000 Inspection of incoming materials 30,000 Product quality audits 60,000 Statistical process control 40,000 Refer to the HNW Ltd. information above. What are HNW's total internal failure costs? A) $50,000 B) $130,000 C) $230,000 D) $170,000
Describe the process of root cause analysis and include in your description the tools that it uses
What will be an ideal response?
Starlight Company has inventory of 8 units at a cost of $200 each on October 1. On October 2, it purchased 20 units at $205 each. 11 units are sold on October 4. Using the perpetual LIFO inventory method, what amount will be reported in cost of goods sold for the 11 units that were sold?
A. $2,255. B. $2,200. C. $2,239. D. $2,215. E. $2,228.