Question 1

An example of electronic funds transfer is

Accepted Answer

A)  a transfer of funds without the use of paper cheques. 
B)  a transfer of funds by writing a cheque. 
C)  the same as a deposit in transit. 
D)  All of these are correct. 
A)  a transfer of funds without the use of paper cheques. 
B)  a transfer of funds by writing a cheque. 
C)  the same as a deposit in transit. 
D)  All of these are correct.

Question 2

Construct the bank reconciliation for Evitus Company as of July 31, 2020 from the following information:
a. Balance per bank statement    $10,150
b. Deposit in transit                   705
c. General Ledger balance       10,250
d. Outstanding cheques             800
e. NSF cheque (debit memo)    220
f. Service charges                      115
g. Interest earned on account 140

Accepted Answer

Evitus Company
Bank Reconciliation as of

Question 3

Compute the adjusted bank balance on May 31, 2019, from the following information: Chequebook balance on May 31 $7,200
Outstanding cheques 500
NSF cheque returned 100
Deposits in transit 250
Service charges 10
Note collected by bank 250

Accepted Answer

A)  $7,200 
B)  $7,340 
C)  $6,615 
D)  $7,560 
A)  $7,200 
B)  $7,340 
C)  $6,615 
D)  $7,560

Question 4

The drawer writes the cheque.

Accepted Answer

A) True 
 B)False

Question 5

An error in recording a $51 deposit as $15 would be included on the bank reconciliation as a(n)

Accepted Answer

A)  addition to the balance per bank. 
B)  subtraction from the balance per bank. 
C)  addition to the balance per books. 
D)  subtraction from the balance per books. 
A)  addition to the balance per bank. 
B)  subtraction from the balance per bank. 
C)  addition to the balance per books. 
D)  subtraction from the balance per books.

Question 6

Outstanding cheques

Accepted Answer

A)  have been subtracted on the bank records but not the chequebook records. 
B)  have not been presented to the bank for payment and have not been subtracted from the company's ledger account. 
C)  have not been presented to the bank for payment but have been subtracted in the ledger account. 
D)  have been returned to the business for nonpayment. 
A)  have been subtracted on the bank records but not the chequebook records. 
B)  have not been presented to the bank for payment and have not been subtracted from the company's ledger account. 
C)  have not been presented to the bank for payment but have been subtracted in the ledger account. 
D)  have been returned to the business for nonpayment.

Question 7

What type of an account is the petty cash fund?

Accepted Answer

A)  Revenue 
B)  Expense 
C)  Asset 
D)  Liability 
A)  Revenue 
B)  Expense 
C)  Asset 
D)  Liability

Question 8

Prepare the required journal entries from the bank reconciliation below as of the end of January:
The balance per general ledger is $200
There is a debit memo for interest expense, $100
There is a debit memo for a customer's NSF cheque $375
Outstanding cheques amount to $2,000
This month's service charge amounts to $50
Deposits in transit amount to $1,500

Accepted Answer

January 31 Interest Expense $1

Question 9

When a deposit is completed it should also be recorded on the current cheque stub.

Accepted Answer

A) True 
 B)False

Question 10

Determine the cash short (-) or over (+) given the following:
The balance per the Petty Cash account $75.
The count of coin and currency amounts to $22.
There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14.

Accepted Answer

$12 short

Question 11

Petty Cash is used to provide cash to pay some small items quickly.

Accepted Answer

A) True 
 B)False

Question 12

When completing a bank reconciliation, explain why all adjustments to the general ledger balance require journal entries?

Accepted Answer

Journal entries are required f

Question 13

A deposit receipt usually separates cheques deposited from coin and currency deposited.

Accepted Answer

A) True 
 B)False

Question 14

The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

Accepted Answer

A)  a credit to Cash for $160. 
B)  a debit to Petty Cash for $160. 
C)  a credit to Cash for $148. 
D)  a credit to Petty Cash for $148. 
A)  a credit to Cash for $160. 
B)  a debit to Petty Cash for $160. 
C)  a credit to Cash for $148. 
D)  a credit to Petty Cash for $148.

Question 15

The auxiliary petty cash record is not a journal.

Accepted Answer

A) True 
 B)False

Question 16

The drawee of a cheque is normally the bank.

Accepted Answer

A) True 
 B)False

Question 17

Cash Short & Over ________ ________ ________ ________

Accepted Answer

Cash Short & Over: e

Question 18

Prepare journal entries for the following petty cash fund transactions:
Sept. 1 Established a $100 petty cash fund.
30 Replenished the petty cash fund. Currency and coins remaining was $20;
approved paid vouchers were: $12 donation expense; $18 postage; $24 office
supplies expense; and $26 miscellaneous expense.

Accepted Answer

Date Transaction PR Debit Cred

Question 19

A $50 petty cash fund has cash of $20 and valid receipts for $30. The entry to replenish the fund would include a

Accepted Answer

A)  credit to Cash for $30. 
B)  debit to Cash for $30. 
C)  credit to Petty Cash for $30. 
D)  debit to Petty Cash for $30. 
A)  credit to Cash for $30. 
B)  debit to Cash for $30. 
C)  credit to Petty Cash for $30. 
D)  debit to Petty Cash for $30.

Question 20

Determine the adjusted cash balance per bank for Egg Packaging on April 30, from the following information: Cash balance on the bank statement $2,500
Customer's cheque returned-NSF 500
Customer's note collected by the bank 600
Deposits in transit, April 30 1,400
Outstanding cheques, April 30 2,650

Accepted Answer

A)  $1,250 
B)  $1,100 
C)  $1,550 
D)  $1,350 
A)  $1,250 
B)  $1,100 
C)  $1,550 
D)  $1,350

An example of electronic funds transfer is

Compute the adjusted bank balance on May 31, 2019, from the following information: Chequebook balance on May 31 $7,200 Outstanding cheques 500 NSF cheque returned 100 Deposits in transit 250 Service charges 10 Note collected by bank 250

The drawer writes the cheque.

An error in recording a $51 deposit as $15 would be included on the bank reconciliation as a(n)

Outstanding cheques

What type of an account is the petty cash fund?

When a deposit is completed it should also be recorded on the current cheque stub.

Determine the cash short (-) or over (+) given the following: The balance per the Petty Cash account $75. The count of coin and currency amounts to $22. There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14.

Petty Cash is used to provide cash to pay some small items quickly.

When completing a bank reconciliation, explain why all adjustments to the general ledger balance require journal entries?

A deposit receipt usually separates cheques deposited from coin and currency deposited.

The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

The auxiliary petty cash record is not a journal.

The drawee of a cheque is normally the bank.

Cash Short & Over

A $50 petty cash fund has cash of $20 and valid receipts for $30. The entry to replenish the fund would include a

Determine the adjusted cash balance per bank for Egg Packaging on April 30, from the following information: Cash balance on the bank statement $2,500 Customer's cheque returned-NSF 500 Customer's note collected by the bank 600 Deposits in transit, April 30 1,400 Outstanding cheques, April 30 2,650

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 8: Banking Procedures and Control of Cash

An example of electronic funds transfer is

Compute the adjusted bank balance on May 31, 2019, from the following information: Chequebook balance on May 31 $7,200 Outstanding cheques 500 NSF cheque returned 100 Deposits in transit 250 Service charges 10 Note collected by bank 250

The drawer writes the cheque.

An error in recording a $51 deposit as $15 would be included on the bank reconciliation as a(n)

Outstanding cheques

What type of an account is the petty cash fund?

When a deposit is completed it should also be recorded on the current cheque stub.

Determine the cash short (-) or over (+) given the following: The balance per the Petty Cash account $75. The count of coin and currency amounts to $22. There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14.

Petty Cash is used to provide cash to pay some small items quickly.

When completing a bank reconciliation, explain why all adjustments to the general ledger balance require journal entries?

A deposit receipt usually separates cheques deposited from coin and currency deposited.

The entry to replenish a $200 petty cash fund, which has cash of $40 and valid receipts for $148, would include

The auxiliary petty cash record is not a journal.

The drawee of a cheque is normally the bank.

Cash Short & Over ________ ________ ________ ________

A $50 petty cash fund has cash of $20 and valid receipts for $30. The entry to replenish the fund would include a

Determine the adjusted cash balance per bank for Egg Packaging on April 30, from the following information: Cash balance on the bank statement $2,500 Customer's cheque returned-NSF 500 Customer's note collected by the bank 600 Deposits in transit, April 30 1,400 Outstanding cheques, April 30 2,650

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Cash Short & Over