Question 1

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

Accepted Answer

A)  It is added to the bank balance. 
B)  It is shown as a debit memo. 
C)  It is shown as a credit memo. 
D)  It is shown as an increase to the bank's cash balance. 
A)  It is added to the bank balance. 
B)  It is shown as a debit memo. 
C)  It is shown as a credit memo. 
D)  It is shown as an increase to the bank's cash balance. B

Question 2

From the following information, prepare the bank reconciliation for Paula's Photography Studio as of June 30.

Accepted Answer

The answer of From the following information, prepare the bank...

Question 3

The May bank statement for Rental shows a balance of $6,000, but the balance per books shows a cash balance of $8,000. Other information includes: 1. A check for $190 to pay the electric bill was recorded on the books as $10.
2) Included on the bank statement was a note collected by the bank for $450 plus interest of $30.
3) Checks outstanding totaled $270.
4) Bank service charges were $60.
5) Deposits in transit were $2,510.
Which item(s) will require a journal entry to update the balance in the Cash account?

Accepted Answer

A)  Checks outstanding and deposits in transit 
B)  Bank service charges, note collected by the bank, and deposits in transit 
C)  Bank service charges, note collected by the bank, and error made by the Bookkeeper 
D)  None of these answers is correct. 
A)  Checks outstanding and deposits in transit 
B)  Bank service charges, note collected by the bank, and deposits in transit 
C)  Bank service charges, note collected by the bank, and error made by the Bookkeeper 
D)  None of these answers is correct. C

Question 4

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Phishing occurs when a bank customer receives an email requesting personal information.

Accepted Answer

A) True 
 B)False

Question 7

Match between columns
                        Premises:  deposit in transit
 bank service charge
 NSF check
 Check written for $95 recorded on the company's ledger as $59
 Outstanding checks
 Check written for $80 recorded as $800
 Check printing charges
 Interest earned on checking account

Accepted Answer

The Answer of Add to bank balance and Deduct from is...

Question 8

List the various steps and procedures included in the bank reconciliation process.
What are the advantages in preparing a monthly bank reconciliation?

Accepted Answer

1. Prepare a list of deposits in transit

Question 9

A payment for $51 is incorrectly recorded on the checkbook stub as $15. The $36 error should be shown on the bank reconciliation as:

Accepted Answer

A)  added to the balance per bank statement. 
B)  deducted from the balance per bank statement. 
C)  added to the balance per books. 
D)  deducted from the balance per books. 
A)  added to the balance per bank statement. 
B)  deducted from the balance per bank statement. 
C)  added to the balance per books. 
D)  deducted from the balance per books.

Question 10

Advantages of on-line banking include:

Accepted Answer

A)  convenience. 
B)  transaction speed. 
C)  effectiveness. 
D)  All of the above are correct. 
A)  convenience. 
B)  transaction speed. 
C)  effectiveness. 
D)  All of the above are correct.

Question 11

Indicate which effect(s) each situation will have:

-________ Bought Supplies on account

Accepted Answer

A) New check written 
B)  Recorded in the general journal 
C)  Recorded in auxiliary petty cash record 
D)  Petty cash voucher prepared 
A) New check written 
B)  Recorded in the general journal 
C)  Recorded in auxiliary petty cash record 
D)  Petty cash voucher prepared

Question 12

Indicate which effect(s) each situation will have:

-________ Owner withdrew $2,000 from the company for personal use

Accepted Answer

A) New check written 
B)  Recorded in the general journal 
C)  Recorded in auxiliary petty cash record 
D)  Petty cash voucher prepared 
A) New check written 
B)  Recorded in the general journal 
C)  Recorded in auxiliary petty cash record 
D)  Petty cash voucher prepared

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 $1,200 
D)  Purchase of a $2,400 piece of Equipment 
A)  Purchase of first aid supplies 
B)  Payment of Salaries Expense 
C)  Owner Withdrawal of $1,200 
D)  Purchase of a $2,400 piece of Equipment

Question 14

Prepare journal entries for the following petty cash fund transactions:
Nov. 1 Established a $75 petty cash fund.
15 Increased the petty cash fund to have a new balance of $200.
30 Replenished the petty cash fund. Currency and coins remaining were $30. Approved paid vouchers were: $10 donation expense; $16 postage expense; $30 office supplies expense; and $20 misc. expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 15

What is the difference between a debit and credit memorandum?

Accepted Answer

A debit memoranda is received from the b

Question 16

Determine the adjusted cash balance per bank for Sheryl's Packaging on November 30, from the following information:

Accepted Answer

A)  $1,800 
B)  $500 
C)  $1,900 
D)  $1,600 
A)  $1,800 
B)  $500 
C)  $1,900 
D)  $1,600

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

Prepare journal entries for the following petty cash fund transactions:
Sept. 1 Established a $300 petty cash fund.
30 Replenished the petty cash fund. Currency and coins remaining was $225; approved paid vouchers were: $12 donation expense; $18 postage; $24 office supplies expense; and $26 miscellaneous expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 20

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

Accepted Answer

A)  deposits in transit. 
B)  bank collections. 
C)  electronic funds transfer. 
D)  outstanding deposits. 
A)  deposits in transit. 
B)  bank collections. 
C)  electronic funds transfer. 
D)  outstanding deposits.

Exam 6: Banking Procedure and Control of Cash

A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?

From the following information, prepare the bank reconciliation for Paula's Photography Studio as of June 30.

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

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

Phishing occurs when a bank customer receives an email requesting personal information.

List the various steps and procedures included in the bank reconciliation process. What are the advantages in preparing a monthly bank reconciliation?

A payment for $51 is incorrectly recorded on the checkbook stub as $15. The $36 error should be shown on the bank reconciliation as:

Advantages of on-line banking include:

Indicate which effect(s) each situation will have: -________ Bought Supplies on account

Indicate which effect(s) each situation will have: -________ Owner withdrew $2,000 from the company for personal use

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

What is the difference between a debit and credit memorandum?

Determine the adjusted cash balance per bank for Sheryl's Packaging on November 30, from the following information:

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

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

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

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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