Question 1

A credit balance in the Cash Short and Over account appears on the:

Accepted Answer

A) balance sheet as a current asset. 
B) income statement as other revenue. 
C) income statement as a miscellaneous expense. 
D) balance sheet as a current liability. 
A) balance sheet as a current asset. 
B) income statement as other revenue. 
C) income statement as a miscellaneous expense. 
D) balance sheet as a current liability.

Question 2

Classify each of the following reconciling items of the Tic and Tac Company as:

-Outstanding cheques ________

Accepted Answer

A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item 
A) an addition to the bank balance 
B) a deduction from the bank balance 
C) an addition to the book balance 
D) a deduction from the book balance 
E) not a reconciling item

Question 3

Using the following data, compute the book balance for Marrow Company before the preparation of a bank reconciliation on January 31, 2019:
- The bank statement reveals a balance of $3,650.59.
- The bank statement indicates service charges of $40.50.
- Outstanding cheques on January 31, 2019, amount to $10,600.49.
- Deposits in transit on January 31, 2019, amount to $15,685.00.
- The bookkeeper mistakenly recorded a $525 cheque payment to a vendor as $52.50.
- The bank mistakenly recorded a deposit of $5,000 as $500.

Accepted Answer

Adjusted bank balance =
$3,650.59 - outs

A credit balance in the Cash Short and Over account appears on the:

Classify each of the following reconciling items of the Tic and Tac Company as: -Outstanding cheques ________

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters

Exam 8: Internal Control and Cash

A credit balance in the Cash Short and Over account appears on the:

Classify each of the following reconciling items of the Tic and Tac Company as: -Outstanding cheques ________

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Current Liabilities and Payroll

Filters