10. Transactions between branches are recorded by the transacting branches A. As if each of them is transacting with the home office. B. By debiting or crediting their own inter-branch accounts. C. As if each of them is transacting with the home office and by debiting or crediting their own inter-branch accounts. D. Not accounted for by the branches

10. Transactions between branches are recorded by the transacting branches A. As if each of them is transacting with the home office. B. By debiting or crediting their own inter-branch accounts. C. As if each of them is transacting with the home office and by debiting or crediting their own inter-branch accounts. D. Not accounted for by the branches

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.17E

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Transactions between branches are recorded by the transacting branches A. As if each of them is transacting with the home office. B. debiting or crediting their own inter- branch accounts . C. As if each of them is transacting with the home office and by debiting or crediting their own inter-branch accounts. D. Not accounted for by the branches
S1: An expense item allocated by the home office to a branch is recorded by thebranch by a debit to an expense ledger account and a credit cash-home office.S2: A debit to Home Office ledger account and a credit to the Trade AccountsReceivable account in the accounting records of a branch indicate that the homeoffice collected accounts receivable of the branch. A. Only S1 is correct.B. Both statements are incorrect.C. Only S2 is correct.D. Both statements are correct.
If the branch receives credit memo from the home office, the branch shall record it in its separate statement of financial position by Disclosure Debiting the home office account Crediting the home office account Increasing the home office account
4. A cash remittance from the branch to the home office is recorded by the home office as a. Debit to investment account. b. Credit to cash. c. Debit to home office. d. Credit to investment account.
4. Use Selected balances from Company’s Branch A and B are as follows: (see image below) All sales, collections, and expenses are handled at the branch. All cash received from sales and collections are sent directly to the Home Office. Expenses are paid by the branch from the imprest fund and immediately reimbursed by the Home Office and credited to the Home Office account. All expenses paid by the branch are recorded in the books of the branch. Compute the balance of the Home Office account on January 1, 2021 in the books of a. Branch A and b. Branch B
7. Of the following, which is an internal report that will determine if the total of the debit balances equal the total of the credit balances in the ledger? A. horizontal analysis B. trial balance C. chart of accounts D. income statement 8. Sales to customers who use bank credit cards, such as MasterCard and Visa, are generally treated as A. sales returns B. cash sales C. sales when the credit card company remits the cash D. sales on account 9. Who is responsible for the freight costs when the terms are FOB shipping point? A. either the seller or the buyer B. the seller C. the ultimate customer D. the buyer
Each of the following documents is a control for a bank account excepta. signature card.b. geographic location of ATMs.c. bank statement.d. bank reconciliation.
A debit to the Income Summary ledger account and a credit to the Home Office account appear in: A. The accounting records of the Home office to record the net income of the home office. B. Some other manner. C. The accounting records of the Home office to record the net income of the branch. D. The accounting records of the branch to record the net income of the branch.
Why would a business maintain a separate account receivable account (within an accounts receivable subsidiary ledger) for each customer, as opposed to maintaining a single Accounts Receivable account (in the general ledger) for all customers?
You just posted a credit to Stars Inc. in the accounts receivable subsidiary ledger. Which special journal did it come from? A. sales journal B. cash receipts journal C. purchases journal D. cash disbursements journal E. general journal
Name the four basic components of an AIS.When special journals are used, where are all the cash payments by cheque recorded?How do debits and credits remain equal when credit sales to customers are posted twice (once to the Accounts Receivable controlling account and once to the customer’s account in the sub-ledger)?How do we identify the journal from which an amount in a ledger account was posted?What is the normal recording and posting procedure when using special journals and controlling accounts with sub-ledgers?7. Why does a company need a general journal when using special journals for sale, purchases, cash receipts, and cash disbursements?
37 - Which of the following accounts is in the "Other Receivables" group?A) Deposits and Guarantees GivenB) Notes ReceivableC) Other Trade ReceivablesD) Receivables from SubsidiariesE) Buyers