Question 1

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. C

Question 2

The bank statement included bank charges. On the bank reconciliation, the item is:

Accepted Answer

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

Question 3

The check is written and signed by the:

Accepted Answer

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

Question 4

From the following information, prepare the bank reconciliation for Paul's Photography Studio for June.

Accepted Answer

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

Question 5

One internal control safeguard is to assign all the duties of receiving, depositing, and recording cash to one employee.

Accepted Answer

A) True 
 B)False

Question 6

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 
D) Purchase of a $2,000 piece of Equipment 
A) Purchase of first aid supplies 
B) Payment of Salaries Expense 
C) Owner Withdrawal 
D) Purchase of a $2,000 piece of Equipment

Question 7

The May bank statement for Accounting Services shows a balance of $6300, but the balance per books shows a cash balance of $7,980. 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.
Which item should be added to the company's book balance during the bank reconciliation?

Accepted Answer

A) Deposit in transit 
B) Check outstanding 
C) Bank service charge 
D) Note collected by the bank 
A) Deposit in transit 
B) Check outstanding 
C) Bank service charge 
D) Note collected by the bank

Question 8

From the bank reconciliation no entry was recorded for deposits in transit. This would cause:

Accepted Answer

A) assets to be overstated. 
B) assets to be understated. 
C) no impact since deposits in transit are already included in the balance per books. 
D) no impact since deposits are not recorded on the books. 
A) assets to be overstated. 
B) assets to be understated. 
C) no impact since deposits in transit are already included in the balance per books. 
D) no impact since deposits are not recorded on the books.

Question 9

When a bank credits your account, it is decreasing the balance.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Construct the bank reconciliation for Kendra's Tutoring, as of October 31, from the following information:

Accepted Answer

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

Question 12

The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n):

Accepted Answer

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

Question 13

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 14

Indicate which adjustments would require a journal entry during the completion of the bank reconciliation. Place an "X" on the respective line(s). ________ a. Deposit in transit
________ b. Bank service charge
________ c. NSF check
________ d. Check written for $58 recorded on the company's ledger as $85
________ e. Outstanding checks
________ f. Check written for $42 recorded as $4
________ g. Check printing charge
________ h. Note collected by bank.

Accepted Answer

_______ A. DEPOSIT I

Question 15

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 16

Information to calculate the adjusted cash balance for Sam's Gift Wrapping is as follows:

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 17

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 18

The journal entry to reverse the entry of a customer's nonsufficient funds check would include a:

Accepted Answer

A) debit to Cash. 
B) credit to Cash. 
C) debit to Accounts Payable. 
D) credit to Accounts Receivable. 
A) debit to Cash. 
B) credit to Cash. 
C) debit to Accounts Payable. 
D) credit to Accounts Receivable.

Question 19

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

Accepted Answer

A) Cash. 
B) Petty Cash. 
C) Postage Expense. 
D) Withdrawals. 
A) Cash. 
B) Petty Cash. 
C) Postage Expense. 
D) Withdrawals.

Question 20

The first two numbers of the ABA code listed on the check represent:

Accepted Answer

A) the Federal Reserve District. 
B) the check number. 
C) the routing number. 
D) the account number. 
A) the Federal Reserve District. 
B) the check number. 
C) the routing number. 
D) the account number.

Exam 6: Banking Procedure and Control of Cash

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

The bank statement included bank charges. On the bank reconciliation, the item is:

The check is written and signed by the:

From the following information, prepare the bank reconciliation for Paul's Photography Studio for June.

One internal control safeguard is to assign all the duties of receiving, depositing, and recording cash to one employee.

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

From the bank reconciliation no entry was recorded for deposits in transit. This would cause:

When a bank credits your account, it is decreasing the balance.

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: -

Construct the bank reconciliation for Kendra's Tutoring, as of October 31, from the following information:

The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n):

A full endorsement on a check:

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

Information to calculate the adjusted cash balance for Sam's Gift Wrapping is as follows:

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

The journal entry to reverse the entry of a customer's nonsufficient funds check would include a:

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

The first two numbers of the ABA code listed on the check represent:

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: the Conclusion of the Payroll Process

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, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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