Question 1

When adjustments are made to the bank balance when completing a bank reconciliation, a journal entry is needed to bring the bank balance up to date.

Accepted Answer

A) True 
 B)False

Question 2

Calculate, from the following information accumulated by Gene Park, the adjusted cash balance at the end of April.

Accepted Answer

A)  $4,110 
B)  $4,350 
C)  $4,300 
D)  $5,410 
A)  $4,110 
B)  $4,350 
C)  $4,300 
D)  $5,410

Question 3

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 4

Determine the cash overage given the following:
The balance per the Petty Cash account $100
The count of coin and currency amounts to $65
There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14
$ ________

Accepted Answer

$6 over [(

Question 5

The entry to establish the petty cash fund was not completed. This would cause:

Accepted Answer

A)  Cash to be understated. 
B)  Cash to be overstated. 
C)  Petty Cash to be understated. 
D)  Both B and C are correct. 
A)  Cash to be understated. 
B)  Cash to be overstated. 
C)  Petty Cash to be understated. 
D)  Both B and C are correct.

Question 6

A company would use a change fund if:

Accepted Answer

A)  there are cash transactions daily. 
B)  they want to pay the postage expense without writing a check. 
C)  the owner wants to make personal withdrawals easily. 
D)  there are supplies purchased for cash. 
A)  there are cash transactions daily. 
B)  they want to pay the postage expense without writing a check. 
C)  the owner wants to make personal withdrawals easily. 
D)  there are supplies purchased for cash.

Question 7

A signature card is kept by the bookkeeper in case of spotting possible forgeries at the bank.

Accepted Answer

A) True 
 B)False

Question 8

A signature card shows the signature of only the person who authorizes others in the company to sign checks.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The change fund is what type of account?

Accepted Answer

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

Question 11

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 12

An example of electronic funds transfer is:

Accepted Answer

A)  a transfer of funds without the use of paper checks. 
B)  a transfer of funds by writing a check. 
C)  the same as a deposit in transit. 
D)  the return of a deposited check. 
A)  a transfer of funds without the use of paper checks. 
B)  a transfer of funds by writing a check. 
C)  the same as a deposit in transit. 
D)  the return of a deposited check.

Question 13

The entry to replenish a $300 petty cash fund, which has cash of $160 and valid receipts for $130 would include:

Accepted Answer

A)  a credit to Cash for $140. 
B)  a debit to Petty Cash for $140. 
C)  a credit to Cash for $130. 
D)  a credit to Petty Cash for $130. 
A)  a credit to Cash for $140. 
B)  a debit to Petty Cash for $140. 
C)  a credit to Cash for $130. 
D)  a credit to Petty Cash for $130.

Question 14

Sam's Tutoring Service's $480 petty cash fund has a shortage of $3. The facts are: $210 in valid receipts for expenses; $477 in coins and currency. The journal entry to replenish the petty cash fund would include a:

Accepted Answer

A)  credit to Cash for $210. 
B)  credit to Petty Cash for $213. 
C)  credit to Cash Short and Over for $3. 
D)  debit to Cash Short and Over for $3. 
A)  credit to Cash for $210. 
B)  credit to Petty Cash for $213. 
C)  credit to Cash Short and Over for $3. 
D)  debit to Cash Short and Over for $3.

Question 15

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
Example:  
-

Accepted Answer

The answer of For each of the following, identify in...

Question 16

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 Accounts Payable 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 Accounts Payable account on the company's books.

Question 17

A restrictive endorsement on a check:

Accepted Answer

A)  can be further endorsed by someone else. 
B)  is the safest endorsement for businesses. 
C)  permits the bank to use its best judgment. 
D)  must be endorsed by the company treasurer. 
A)  can be further endorsed by someone else. 
B)  is the safest endorsement for businesses. 
C)  permits the bank to use its best judgment. 
D)  must be endorsed by the company treasurer.

Question 18

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)  Accounts Receivable to be understated. 
A)  Revenues to be overstated. 
B)  Revenues to be understated. 
C)  Expenses to be overstated. 
D)  Accounts Receivable to be understated.

Question 19

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary).
Example:  
-

Accepted Answer

The answer of For each of the following, identify in...

Question 20

The debit recorded in the journal to establish the petty cash fund is to:

Accepted Answer

A)  Cash. 
B)  Petty Cash. 
C)  Accounts Receivable. 
D)  Accounts Payable. 
A)  Cash. 
B)  Petty Cash. 
C)  Accounts Receivable. 
D)  Accounts Payable.

Exam 6: Banking Procedure and Control of Cash

When adjustments are made to the bank balance when completing a bank reconciliation, a journal entry is needed to bring the bank balance up to date.

Calculate, from the following information accumulated by Gene Park, the adjusted cash balance at the end of April.

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

Determine the cash overage given the following: The balance per the Petty Cash account $100 The count of coin and currency amounts to $65 There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14 $ ________

The entry to establish the petty cash fund was not completed. This would cause:

A company would use a change fund if:

A signature card is kept by the bookkeeper in case of spotting possible forgeries at the bank.

A signature card shows the signature of only the person who authorizes others in the company to sign checks.

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

The change fund is what type of account?

What type of an account is the petty cash fund?

An example of electronic funds transfer is:

The entry to replenish a $300 petty cash fund, which has cash of $160 and valid receipts for $130 would include:

Sam's Tutoring Service's $480 petty cash fund has a shortage of $3. The facts are: $210 in valid receipts for expenses; $477 in coins and currency. The journal entry to replenish the petty cash fund would include a:

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

A deposit received by the bank will:

A restrictive endorsement on a check:

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

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement on which the account balance is reported, and in Column 4 the nature of the account (permanent/temporary). Example: -

The debit recorded in the journal to establish 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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