Use the following to answer questions 1?9:Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAIn preparing the bank reconciliation for Heath Company, an employee found that a certified check that the company had used to settle an account payable remained outstanding.
What will be an ideal response?
(NA) (NA) (NA) (NA) (NA) (NA) (NA)
A certified check is guaranteed for payment by a bank. A certified check is deducted from the customer's account when the bank certifies that the check is good. Certified checks, therefore, have been subtracted by the bank in determining the unadjusted bank balance, whether they have cleared the bank or remain outstanding as of the date of the bank statement. Thus, a certified check that is still outstanding does not affect any of the elements of the financial statements.
You might also like to view...
Salim carelessly makes a check for $100 to Abel in a way that makes it possible for someone to easily alter it. Abel alters the check to read $1,000. Under these circumstances, ________.
A. a drawee bank can charge the $100 to Salim's account and will be liable for the rest of the altered amount B. the drawee bank is completely liable to Salim for accepting the altered check even if Salim's negligence contributed to the alteration C. Abel is liable to the drawee bank and the bank cannot charge the $1,000 to Salim's account D. if the drawee bank pays the check to Abel in good faith, it can charge the $1,000 to Salim's account
How do an essay and speech differ in terms of organization?
What will be an ideal response?
A simple way to remember the qualifying process is to think of the word "MAD." The letter "D" reminds the salesperson to ask if the prospect has:
A. discretion. B. dedication. C. determination. D. discernment. E. desire.
Which of the following is a characteristic of an experiment where the binomial probability distribution is applicable?
A. The experiment has at least two possible outcomes B. Exactly two outcomes are possible on each trial C. The trials are dependent on each other D. The probabilities of the outcomes changes from one trial