21) An imprest petty cash fund of $400 was established for minor disbursements. At the end of the month the fund included petty cash tickets for the purchase of $185 in supplies, $41 for postage, $86 for fuel and a delivery charge of $65. How much cash should left in the fund?
A) $23
B) $88
C) $174
D) $377
22) Examples of items purchased with petty cash are:
A) delivery cost for package.
B) taxi fare for executive of company.
C) box of name tags for convention.
D) all of the above.
23) Debit cards are being used:
A) in place of petty cash funds.
B) for small purchases.
C) for package delivery fees.
D) all of the above.
24) Hill Company purchased stamps for $46 using the petty cash fund. What journal entry is required?
A) Debit Postage Expense for $46 and credit Cash for $46.
B) Debit Accounts Payable for $46 and credit Cash for $46.
C) Debit Petty Cash for $46 and credit Cash for $46.
D) No journal entry is required until the petty cash fund is replenished at the end of the month.
25) A company receives customer checks in the mail for credit sales. Which people are involved in processing the checks?
A) mailroom employee, treasurer, cashier in treasurer's department
B) mailroom employee, bookkeeper in accounting department, controller
C) mailroom employee, bookkeeper in accounting department, controller, treasurer
D) mailroom employee, bookkeeper in accounting department, controller, treasurer, cashier in treasurer's department
26) With regard to customer checks received by mail, which statement is TRUE?
A) The Debit to Cash by the Accounting Department should equal the amount deposited in the bank by the mailroom employee.
B) The customers' Accounts Receivable accounts should be adjusted by the Treasury Department for the payments received.
C) The controller compares the customers' checks to the remittance advices sent from the mailroom.
D) The Accounting Department handles the bookkeeping part and the cashier in the Treasurer's Department deposits the checks in the bank.
27) The New Jewelry Store sells mostly costume jewelry, but it also sells an expensive watch brand. The owner of the store is concerned about monitoring sales and inventory of the watches. He decided to perform a quick inventory count of the watches on a daily basis as a control procedure. The owner counts 58 watches at the end of business on Thursday. On Friday, a shipment of 23 watches is received. The point-of-sale terminal for Friday indicates that 7 watches were sold that day. A quick inventory of watches at the end of business on Friday indicates that 72 watches are on hand. How many, if any, watches are probably stolen?
A) 0
B) 1
C) 2
D) 4