Question 1

A deposit ticket usually combines checks deposited with coin and currency deposited.

Accepted Answer

A) True 
 B)False

Question 2

On a bank reconciliation,deposits added to the bank side are called:

Accepted Answer

A) deposits in transit. 
B) bank collections. 
C) deposits on hold. 
D) outstanding deposits. 
A) deposits in transit. 
B) bank collections. 
C) deposits on hold. 
D) outstanding deposits.

Question 3

From the bank reconciliation,no entry was recorded for deposits in transit.This would cause:

Accepted Answer

A) assets to be overstated. 
B) assets to be understated. 
C) no impact since deposits in transit are already included in the balance per books. 
D) no impact since deposits are not recorded on the books. 
A) assets to be overstated. 
B) assets to be understated. 
C) no impact since deposits in transit are already included in the balance per books. 
D) no impact since deposits are not recorded on the books.

Question 4

Endorsing a check:

Accepted Answer

A) guarantees payment. 
B) transfers the right to deposit or transfer cash. 
C) allows a check to be deposited only. 
D) All of these answers are correct. 
A) guarantees payment. 
B) transfers the right to deposit or transfer cash. 
C) allows a check to be deposited only. 
D) All of these answers are correct.

Question 5

Sam's Tutoring Service's $500 petty cash fund has a shortage of $4.The facts are: $180 in valid receipts for expenses;$316 in coins and currency.The journal entry to replenish the petty cash fund would include a:

Accepted Answer

A) credit to Cash for $180. 
B) credit to Petty Cash for $184. 
C) credit to Cash Short and Over for $4. 
D) debit to Cash Short and Over for $4. 
A) credit to Cash for $180. 
B) credit to Petty Cash for $184. 
C) credit to Cash Short and Over for $4. 
D) debit to Cash Short and Over for $4.

Question 6

The May bank statement for Tax Services shows a balance of $5,300,but the balance per books shows a cash balance of $6,980.Other information includes:
1)A check for $200 to pay the electric bill was recorded on the books as $20.
2)Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
3)Checks outstanding totaled $260.
4)Bank service charges were $50.
5)Deposits in transit were $2,140.
Which item(s)should be subtracted from the balance per books?

Accepted Answer

A) Deposits in transit 
B) Checks outstanding and bank service charge 
C) Bank service charge and the note collected by the bank 
D) None of the above is correct. 
A) Deposits in transit 
B) Checks outstanding and bank service charge 
C) Bank service charge and the note collected by the bank 
D) None of the above is correct.

Question 7

The journal entry to adjust the records from Nothin' But Organization bank reconciliation would include:

Accepted Answer

A) the total of outstanding checks. 
B) deposits in transit. 
C) notification from the bank of a customer's NSF check. 
D) correction of any errors or omissions on the bank statement. 
A) the total of outstanding checks. 
B) deposits in transit. 
C) notification from the bank of a customer's NSF check. 
D) correction of any errors or omissions on the bank statement.

Question 8

If the owner of Pague Legal Services forgot to deduct a withdrawal from the balance per books,what entry would be necessary?

Accepted Answer

A) Debit Cash;credit Withdrawals 
B) Debit Withdrawals;credit Cash 
C) Customer collection taken by the bank 
D) Debit cash;credit Revenue 
A) Debit Cash;credit Withdrawals 
B) Debit Withdrawals;credit Cash 
C) Customer collection taken by the bank 
D) Debit cash;credit Revenue

Question 9

The check is written and signed by the:

Accepted Answer

A) drawer. 
B) drawee. 
C) bank teller. 
D) None of the above 
A) drawer. 
B) drawee. 
C) bank teller. 
D) None of the above

Question 10

The petty cash overage was not recorded.This would cause:

Accepted Answer

A) revenues to be overstated. 
B) revenues to be understated. 
C) expenses to be overstated. 
D) expenses to be understated. 
A) revenues to be overstated. 
B) revenues to be understated. 
C) expenses to be overstated. 
D) expenses to be understated.

Question 11

Riley's Limousines' entry to establish a $75 petty cash fund for the office would include a:

Accepted Answer

A) debit to Cash for $75. 
B) credit to Petty Cash for $75. 
C) credit to Cash for $75. 
D) debit to Office Expense for $75. 
A) debit to Cash for $75. 
B) credit to Petty Cash for $75. 
C) credit to Cash for $75. 
D) debit to Office Expense for $75.

Question 12

A signature card is kept in the bank files so that possible forgeries could be spotted.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following transactions would be recorded in an auxiliary petty cash record?

Accepted Answer

A) Purchase of first aid supplies 
B) Payment of Salaries Expense 
C) Owner Withdrawal of $1,000 
D) Purchase of a $2,000 piece of Equipment 
A) Purchase of first aid supplies 
B) Payment of Salaries Expense 
C) Owner Withdrawal of $1,000 
D) Purchase of a $2,000 piece of Equipment

Question 14

If a check marked NSF is returned from the bank,an adjusting entry debiting Cash is needed.

Accepted Answer

A) True 
 B)False

Question 15

If the ending balance in the Cash Short and Over account is a credit,it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A) True 
 B)False

Question 16

The bank statement included bank charges.On the bank reconciliation,this item is:

Accepted Answer

A) an addition to the balance per company books. 
B) an addition to the balance per bank statement. 
C) a deduction from the balance per bank statement. 
D) a deduction from the balance per company books. 
A) an addition to the balance per company books. 
B) an addition to the balance per bank statement. 
C) a deduction from the balance per bank statement. 
D) a deduction from the balance per company books.

Question 17

What is the purpose of internal control?

Accepted Answer

Internal control hel

Question 18

Indicate which adjustments would require a journal entry during the completion of the bank reconciliation.Place an "X" on the respective line(s).
________ a.Deposit in transit
________ b.Bank service charge
________ c.NSF check
________ d.Check written for $58 recorded on the company's ledger as $85
________ e.Outstanding checks
________ f.Check written for $42 recorded as $4
________ g.Check printing charge
________ h.Note collected by bank.

Accepted Answer

______ a.Deposit in transit
X b.Bank ser

Question 19

Calculate,from the following information accumulated by Bob Clark,the adjusted cash balance at the end of April.
$$\begin{array} { | l | r | } 
\hline \text { Bank statement ending cash balance } & \$ 3,000 \
\hline \text { General ledger cash balance ending } & 4,250 \
\hline \text { Bank monthly service charge } & 45 \
\hline \text { Deposits in transit } & 2,500 \
\hline \text { Outstanding checks } & 1,500 \
\hline \text { NSF check returned with bank statement } & 205 \
\hline
\end{array}$$

Accepted Answer

A) $4,000 
B) $4,250 
C) $4,205 
D) $5,500 
A) $4,000 
B) $4,250 
C) $4,205 
D) $5,500

Question 20

________ Bought coffee and rolls for a business meeting and used cash

Accepted Answer

The answer of ________ Bought coffee and rolls for a...

Exam 6: Banking Procedure and Control of Cash

A deposit ticket usually combines checks deposited with coin and currency deposited.

On a bank reconciliation,deposits added to the bank side are called:

From the bank reconciliation,no entry was recorded for deposits in transit.This would cause:

Endorsing a check:

Sam's Tutoring Service's $500 petty cash fund has a shortage of $4.The facts are: $180 in valid receipts for expenses;$316 in coins and currency.The journal entry to replenish the petty cash fund would include a:

The journal entry to adjust the records from Nothin' But Organization bank reconciliation would include:

If the owner of Pague Legal Services forgot to deduct a withdrawal from the balance per books,what entry would be necessary?

The check is written and signed by the:

The petty cash overage was not recorded.This would cause:

Riley's Limousines' entry to establish a $75 petty cash fund for the office would include a:

A signature card is kept in the bank files so that possible forgeries could be spotted.

Which of the following transactions would be recorded in an auxiliary petty cash record?

If a check marked NSF is returned from the bank,an adjusting entry debiting Cash is needed.

If the ending balance in the Cash Short and Over account is a credit,it indicates that cash shortages have exceeded cash overages for the period.

The bank statement included bank charges.On the bank reconciliation,this item is:

What is the purpose of internal control?

________ Bought coffee and rolls for a business meeting and used cash

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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