Question 1

The following information pertains to Mateo Company:
 
Mateo should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Accepted Answer

A)  $20,310 
B)  $25,335 
C)  $22,260 
D)  $24,165 
A)  $20,310 
B)  $25,335 
C)  $22,260 
D)  $24,165 C

Question 2

Cyprus, Inc.'s June bank statement shows a June 30 balance of $27,150. Prior to reconciliation, its books show a cash balance of $27,630. The information below pertains to Cyprus:

The reconciled cash balance at June 30 on the bank reconciliation should be:

Accepted Answer

A)  $30,300 
B)  $28,560 
C)  $28,020 
D)  $27,810 
A)  $30,300 
B)  $28,560 
C)  $28,020 
D)  $27,810 B

Question 3

The following information was used in reconciling the bank account for Meyer Company on October 31:
 
Calculate the Adjusted Book Balance on October 31.

Accepted Answer

A)  $27,960 
B)  $25,080 
C)  $28,260 
D)  $27,060 
A)  $27,960 
B)  $25,080 
C)  $28,260 
D)  $27,060 A

Question 4

The following information pertains to the Simran Company:
 
Simran should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Accepted Answer

A)  $28,560 
B)  $29,240 
C)  $32,500 
D)  $26,660 
A)  $28,560 
B)  $29,240 
C)  $32,500 
D)  $26,660

Question 5

The following journal entry is necessary upon discovery of a "NSF" check during a bank reconciliation:

Accepted Answer

A)  Accounts Receivable
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
B)  Not Sufficient Funds Expense
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
C)  Miscellaneous Expense
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
D)  No entry is necessary because the bank makes the entry. 
A)  Accounts Receivable
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
B)  Not Sufficient Funds Expense
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
C)  Miscellaneous Expense
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 
D)  No entry is necessary because the bank makes the entry.

Question 6

Which of the following would you add to the balance per general ledger to arrive at the reconciled cash balance in a bank reconciliation?

Accepted Answer

A)  Bank service charge 
B)  Collection of a note by bank 
C)  "NSF" checks 
D)  Deposits in transit 
A)  Bank service charge 
B)  Collection of a note by bank 
C)  "NSF" checks 
D)  Deposits in transit

Question 7

Athens, Inc.'s June bank statement shows a June 30 balance of $36,200. Prior to reconciliation, its books show a cash balance of $36,840. The information below pertains to Athens:
 
The reconciled cash balance at June 30 on the bank reconciliation should be:

Accepted Answer

A)  $40,400 
B)  $38,080 
C)  $37,360 
D)  $37,080 
A)  $40,400 
B)  $38,080 
C)  $37,360 
D)  $37,080

Question 8

After completing a bank reconciliation, you are preparing journal entries to agree the New Horizons Company's Cash account balance with the reconciled balance shown on the reconciliation.
Which of the following requires a journal entry?

Accepted Answer

A)  Deposits in transit at the end of the period 
B)  Outstanding checks at the end of the period 
C)  An error by the bank in recording one of the firm's deposits 
D)  An "NSF" check 
A)  Deposits in transit at the end of the period 
B)  Outstanding checks at the end of the period 
C)  An error by the bank in recording one of the firm's deposits 
D)  An "NSF" check

Question 9

Use the following information to prepare a bank reconciliation for Atticus Company at August 31, 2019: 
(1) Cash account balance, August 31, $31,185.90.
(2) Bank statement balance, August 31, $37,141.50.
(3) Deposits in transit, $2,880.00.
(4) Outstanding checks, August 31, $9,570.60.
(5) Service charge on bank statement not recorded in books, $75.00.
(6) Bank error - another company's check charged on Atticus Company's bank statement, $750.00.
(7) Check for repairs expense, $2,010.00, incorrectly recorded in books as $2,100.00.

Accepted Answer

The answer of Use the following information to prepare a...

Question 10

The three elements that are almost always present when a fraud occurs are pressure, rationalization and concealment.

Accepted Answer

A) True 
 B)False

Question 11

In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4239 for May's rent was correctly written and drawn for $6,750 but was erroneously entered in the accounting records as $6,570.
When preparing the May bank reconciliation, the Tammy Company should:

Accepted Answer

A)  Deduct $180 from the book balance of cash 
B)  Add $180 to the bank statement balance 
C)  Deduct $180 from the bank statement balance 
D)  Add $180 to the book balance of cash 
A)  Deduct $180 from the book balance of cash 
B)  Add $180 to the bank statement balance 
C)  Deduct $180 from the bank statement balance 
D)  Add $180 to the book balance of cash

Question 12

The following information pertains to the Juniper Company:
 
Juniper should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Accepted Answer

A)  $21,420 
B)  $21,930 
C)  $24,375 
D)  $19,995 
A)  $21,420 
B)  $21,930 
C)  $24,375 
D)  $19,995

Question 13

The bank statement reported an ending balance of $43,860 after deducting $660 in service charges and an addition of $13,500 for a note collected by the bank on the Cherokee Company's behalf. The company books reported an ending balance of $29,070, and determined that deposits in transit equal $16,800 and outstanding checks equal $18,750.
What is the adjusted cash balance?

Accepted Answer

A)  $41,910 
B)  $16,800 
C)  $35,910 
D)  $21,120 
A)  $41,910 
B)  $16,800 
C)  $35,910 
D)  $21,120

Question 14

Heidi Company developed the following reconciling information in preparing its September bank reconciliation:
 
Using the above information, determine the cash balance per books (before adjustments) for Heidi Company.

Accepted Answer

A)  $ 8,200 
B)  $32,000 
C)  $44,000 
D)  $23,400 
A)  $ 8,200 
B)  $32,000 
C)  $44,000 
D)  $23,400

Question 15

In comparing the canceled checks on the bank statement with the entries in the accounting records, O'Brien Company found that check number 4239 for May's rent was correctly written and drawn for $9,855 but was erroneously entered in the accounting records as $9,585.
When preparing the May bank reconciliation, the O'Brien Company should:

Accepted Answer

A)  Deduct $270 from the book balance of cash 
B)  Add $270 to the bank statement balance 
C)  Deduct $270 from the bank statement balance 
D)  Add $270 to the book balance of cash 
A)  Deduct $270 from the book balance of cash 
B)  Add $270 to the bank statement balance 
C)  Deduct $270 from the bank statement balance 
D)  Add $270 to the book balance of cash

Question 16

During its year-end bank reconciliation, Red River Company finds that Check No. 951 was written for $49.70 on the books, but the check was written and cleared the bank for the correct amount, $94.70.
The correct treatment on the bank reconciliation would be:

Accepted Answer

A)  On the bank side, deduct $45 from payments and add $45 to ending balance 
B)  On the book side, deduct $45 from payments and add $45 to ending balance 
C)  On the book side, add $45 to payments and deduct $45 from ending balance 
D)  On the bank side, add $45 to receipts and add $45 to ending balance 
A)  On the bank side, deduct $45 from payments and add $45 to ending balance 
B)  On the book side, deduct $45 from payments and add $45 to ending balance 
C)  On the book side, add $45 to payments and deduct $45 from ending balance 
D)  On the bank side, add $45 to receipts and add $45 to ending balance

Question 17

The bank statement reported an ending balance of $58,480 after deducting $880 in service charges and an addition of $18,000 for a note collected by the bank on the Bandit Company's behalf. The company books reported an ending balance of $38,760, and determined that deposits in transit equal $22,400 and outstanding checks equal $25,000.
What is the adjusted cash balance?

Accepted Answer

A)  $55,880 
B)  $22,400 
C)  $47,880 
D)  $28,160 
A)  $55,880 
B)  $22,400 
C)  $47,880 
D)  $28,160

Question 18

In preparing its bank reconciliation at March 31, Mountainview Company has the following information:
 
What is the proper cash balance at March 31 for balance sheet purposes?

Accepted Answer

A)  $143,000 
B)  $147,000 
C)  $147,200 
D)  $148,200 
A)  $143,000 
B)  $147,000 
C)  $147,200 
D)  $148,200

Question 19

The following information pertains to Julianna Company:
 
Julianna should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Accepted Answer

A)  $27,080 
B)  $33,780 
C)  $29,680 
D)  $32,220 
A)  $27,080 
B)  $33,780 
C)  $29,680 
D)  $32,220

Question 20

In preparing its June 30, 2019 bank reconciliation, a company has available the following information:
 
As of June 30, the company's adjusted cash balance is:

Accepted Answer

A)  $ 88,800 
B)  $ 82,000 
C)  $ 88,400 
D)  $115,200 
A)  $ 88,800 
B)  $ 82,000 
C)  $ 88,400 
D)  $115,200

The following information pertains to Mateo Company: Mateo should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Cyprus, Inc.'s June bank statement shows a June 30 balance of $27,150. Prior to reconciliation, its books show a cash balance of $27,630. The information below pertains to Cyprus: The reconciled cash balance at June 30 on the bank reconciliation should be:

The following information was used in reconciling the bank account for Meyer Company on October 31: Calculate the Adjusted Book Balance on October 31.

The following information pertains to the Simran Company: Simran should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

The following journal entry is necessary upon discovery of a "NSF" check during a bank reconciliation:

Which of the following would you add to the balance per general ledger to arrive at the reconciled cash balance in a bank reconciliation?

Athens, Inc.'s June bank statement shows a June 30 balance of $36,200. Prior to reconciliation, its books show a cash balance of $36,840. The information below pertains to Athens: The reconciled cash balance at June 30 on the bank reconciliation should be:

After completing a bank reconciliation, you are preparing journal entries to agree the New Horizons Company's Cash account balance with the reconciled balance shown on the reconciliation. Which of the following requires a journal entry?

The three elements that are almost always present when a fraud occurs are pressure, rationalization and concealment.

The following information pertains to the Juniper Company: Juniper should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Heidi Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for Heidi Company.

During its year-end bank reconciliation, Red River Company finds that Check No. 951 was written for $49.70 on the books, but the check was written and cleared the bank for the correct amount, $94.70. The correct treatment on the bank reconciliation would be:

In preparing its bank reconciliation at March 31, Mountainview Company has the following information: What is the proper cash balance at March 31 for balance sheet purposes?

The following information pertains to Julianna Company: Julianna should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

In preparing its June 30, 2019 bank reconciliation, a company has available the following information: As of June 30, the company's adjusted cash balance is:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Financial Statements

Accounting for Merchandising Operations

Accounting for Inventory

Accounting for Receivables

Accounting for Long-Lived and Intangible Assets

Accounting for Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Overview of Managerial Accounting, Managerial Accounting Concepts and Cost Flows

Cost Accounting Systemsjob Order Costing

Cost Accounting Systemsprocess Costing

Activity-Based Costing

Cost-Volume-Profit Relationships

Variable Costinga Tool for Decision Making

Relevant Costs and Short-Term Decision Making

Planning and Budgeting

Standard Costing and Variance Analysis

Flexible Budgets, Segment Analysis, and Performance Reporting

Capital Budgeting

Filters

Exam 7: Internal Control and Cash

The following information pertains to Mateo Company: Mateo should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Cyprus, Inc.'s June bank statement shows a June 30 balance of $27,150. Prior to reconciliation, its books show a cash balance of $27,630. The information below pertains to Cyprus: The reconciled cash balance at June 30 on the bank reconciliation should be:

The following information was used in reconciling the bank account for Meyer Company on October 31: Calculate the Adjusted Book Balance on October 31.

The following information pertains to the Simran Company: Simran should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

The following journal entry is necessary upon discovery of a "NSF" check during a bank reconciliation:

Which of the following would you add to the balance per general ledger to arrive at the reconciled cash balance in a bank reconciliation?

Athens, Inc.'s June bank statement shows a June 30 balance of $36,200. Prior to reconciliation, its books show a cash balance of $36,840. The information below pertains to Athens: The reconciled cash balance at June 30 on the bank reconciliation should be:

After completing a bank reconciliation, you are preparing journal entries to agree the New Horizons Company's Cash account balance with the reconciled balance shown on the reconciliation. Which of the following requires a journal entry?

The three elements that are almost always present when a fraud occurs are pressure, rationalization and concealment.

The following information pertains to the Juniper Company: Juniper should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

Heidi Company developed the following reconciling information in preparing its September bank reconciliation: Using the above information, determine the cash balance per books (before adjustments) for Heidi Company.

During its year-end bank reconciliation, Red River Company finds that Check No. 951 was written for $49.70 on the books, but the check was written and cleared the bank for the correct amount, $94.70. The correct treatment on the bank reconciliation would be:

In preparing its bank reconciliation at March 31, Mountainview Company has the following information: What is the proper cash balance at March 31 for balance sheet purposes?

The following information pertains to Julianna Company: Julianna should show the following reconciled cash balance from the bank reconciliation on its balance sheet:

In preparing its June 30, 2019 bank reconciliation, a company has available the following information: As of June 30, the company's adjusted cash balance is:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Understanding Financial Statements

Accounting for Merchandising Operations

Accounting for Inventory

Accounting for Receivables

Accounting for Long-Lived and Intangible Assets

Accounting for Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Overview of Managerial Accounting, Managerial Accounting Concepts and Cost Flows

Cost Accounting Systemsjob Order Costing

Cost Accounting Systemsprocess Costing

Activity-Based Costing

Cost-Volume-Profit Relationships

Variable Costinga Tool for Decision Making

Relevant Costs and Short-Term Decision Making

Planning and Budgeting

Standard Costing and Variance Analysis

Flexible Budgets, Segment Analysis, and Performance Reporting

Capital Budgeting

Filters