Question 1

A full endorsement on a check:

Accepted Answer

A) is the same as a blank endorsement. 
B) can be endorsed only by the person or company named in the original endorsement. 
C) is the safest endorsement for businesses. 
D) does none of the above. 
A) is the same as a blank endorsement. 
B) can be endorsed only by the person or company named in the original endorsement. 
C) is the safest endorsement for businesses. 
D) does none of the above.

Question 2

A deposit received by the bank will:

Accepted Answer

A) debit the company's bank account. 
B) credit the company's bank account. 
C) debit the cash account on the company's books. 
D) credit the cash account on the company's books. 
A) debit the company's bank account. 
B) credit the company's bank account. 
C) debit the cash account on the company's books. 
D) credit the cash account on the company's books.

Question 3

The May bank statement for Legal Services shows a balance of $6,000,but the balance per books shows a cash balance of $7,680.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.
The adjusted cash balance at the end of May should be:

Accepted Answer

A) $9,810. 
B) $7,620. 
C) $7,150. 
D) $7,880. 
A) $9,810. 
B) $7,620. 
C) $7,150. 
D) $7,880.

Question 4

The drawee writes the check.

Accepted Answer

A) True 
 B)False

Question 5

Canceled checks are negotiable at the bank for the face value.

Accepted Answer

A) True 
 B)False

Question 6

Information to calculate the adjusted cash balance for Sue's Company is as follows:
$$\begin{array} { | l | r | } 
\hline \text { Cash balance per general ledger } & \$ 2,100 \
\hline \text { Customer's check returned-NSF } & 75 \
\hline \text { Bank service charges } & 40 \
\hline \text { Deposits in transit } & 500 \
\hline \text { Outstanding checks } & 700 \
\hline \text { Customer's note collected by bank } & 645 \
\hline
\end{array}$$

Accepted Answer

A) $2,330 
B) $2,430 
C) $2,630 
D) $2,230 
A) $2,330 
B) $2,430 
C) $2,630 
D) $2,230

Question 7

What type of an account is the petty cash fund?

Accepted Answer

A) Contra-asset 
B) Expense 
C) Asset 
D) Liability 
A) Contra-asset 
B) Expense 
C) Asset 
D) Liability

Question 8

When the bank pays a check written by the company,it would:

Accepted Answer

A) credit the customer's bank account. 
B) debit the customer's bank account. 
C) debit the cash account on the company's books. 
D) No increase or decrease is made to the company's bank account. 
A) credit the customer's bank account. 
B) debit the customer's bank account. 
C) debit the cash account on the company's books. 
D) No increase or decrease is made to the company's bank account.

Question 9

The drawee of the check is the person receiving the money.

Accepted Answer

A) True 
 B)False

Question 10

Construct the bank reconciliation for Mitter Company as of July 31,from the following information:
 $\begin{array}{lr}
\text { a. Balance per bank statement } & \$ 9,150 \
\text { b. Deposit in transit } & 705 \
\text { c. Checkbook balance } & 9,250 \
\text { d. Outstanding checks } & 800 \
\text { e. NSF check (debit memo) } & 220 \
\text { f. Service charges } & 115 \
\text { g. Interest earned on account } & 140
\end{array}$

Accepted Answer

The answer of Construct the bank reconciliation for Mitter Company...

Question 11

Bank service charges would be shown on a bank reconciliation as:

Accepted Answer

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

Question 12

If the written amount on the check does NOT match the amount expressed in figures,the bank may:

Accepted Answer

A) pay the amount written in words. 
B) return the check unpaid. 
C) contact the drawer to see what was meant. 
D) All of the above are correct choices. 
A) pay the amount written in words. 
B) return the check unpaid. 
C) contact the drawer to see what was meant. 
D) All of the above are correct choices.

Question 13

________ Replenishment of petty cash

Accepted Answer

The answer of ________ Replenishment of petty cash...

Question 14

Which of the following bank reconciliation items would be reflected in a journal entry?

Accepted Answer

A) Error made by the bank 
B) Outstanding Checks 
C) Bank service charges 
D) Deposit in transit 
A) Error made by the bank 
B) Outstanding Checks 
C) Bank service charges 
D) Deposit in transit

Question 15

Transferring money without paper checks is called electronic funds transfer.

Accepted Answer

A) True 
 B)False

Question 16

Construct the bank reconciliation for Bob's Tutoring,as of October 31,from the following information:
 $$\begin{array} { l r } 
\text { Ending checkbook balance } & \$ 940 \
\text { Ending bank statement balance } & 540 \
\text { Deposits in transit } & 640 \
\text { Outstand ing checks } & 280 \
\text { Bark service charge (debit memo) } & 40
\end{array}$$

Accepted Answer

The answer of Construct the bank reconciliation for Bob's Tutoring,as...

Question 17

________ Establishment of petty cash

Accepted Answer

The answer of ________ Establishment of petty cash...

Question 18

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

Accepted Answer

A) They would be added to the balance of the bank statement. 
B) They would be subtracted from the balance of the bank statement. 
C) They would be added to the balance per books. 
D) They would be ignored. 
A) They would be added to the balance of the bank statement. 
B) They would be subtracted from the balance of the bank statement. 
C) They would be added to the balance per books. 
D) They would be ignored.

Question 19

The person or company to whom a check is payable is called the:

Accepted Answer

A) payer. 
B) drawer. 
C) drawee. 
D) payee. 
A) payer. 
B) drawer. 
C) drawee. 
D) payee.

Question 20

The credit recorded in the journal to replenish the petty cash fund is to:

Accepted Answer

A) Cash. 
B) Petty Cash. 
C) Accounts Receivable. 
D) Miscellaneous Expense 
A) Cash. 
B) Petty Cash. 
C) Accounts Receivable. 
D) Miscellaneous Expense

Exam 6: Banking Procedure and Control of Cash

A full endorsement on a check:

A deposit received by the bank will:

The drawee writes the check.

Canceled checks are negotiable at the bank for the face value.

Information to calculate the adjusted cash balance for Sue's Company is as follows: Cash balance per general ledger \ 2,100 Customer's check returned-NSF 75 Bank service charges 40 Deposits in transit 500 Outstanding checks 700 Customer's note collected by bank 645

What type of an account is the petty cash fund?

When the bank pays a check written by the company,it would:

The drawee of the check is the person receiving the money.

Bank service charges would be shown on a bank reconciliation as:

If the written amount on the check does NOT match the amount expressed in figures,the bank may:

________ Replenishment of petty cash

Which of the following bank reconciliation items would be reflected in a journal entry?

Transferring money without paper checks is called electronic funds transfer.

Construct the bank reconciliation for Bob's Tutoring,as of October 31,from the following information: Ending checkbook balance \ 940 Ending bank statement balance 540 Deposits in transit 640 Outstand ing checks 280 Bark service charge (debit memo) 40

________ Establishment of petty cash

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

The person or company to whom a check is payable is called the:

The credit recorded in the journal to replenish the petty cash fund is to:

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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