Question 1

The drawer writes the check.

Accepted Answer

A) True 
 B)False

Question 2

A signature card is kept in the bank files so that possible forgeries could be spotted.

Accepted Answer

A) True 
 B)False

Question 3

The Petty Cash account is debited when:

Accepted Answer

A) the account is being replenished. 
B) the account balance is being decreased. 
C) the account balance is being increased. 
D) when the custodian pays for postage from petty cash. 
A) the account is being replenished. 
B) the account balance is being decreased. 
C) the account balance is being increased. 
D) when the custodian pays for postage from petty cash.

Question 4

The person or company to whom a check is payable is called the:

Accepted Answer

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

Question 5

Determine the cash short (-)or over (+)given the following:
The balance per the Petty Cash account $75
The count of coin and currency amounts to $27
There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14
$ ________

Accepted Answer

$7 short [

Question 6

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) All of these are correct. 
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) All of these are correct.

Question 7

A petty cash fund is set up:

Accepted Answer

A) to pay for large expenses. 
B) to pay for small expenses. 
C) for the owner to withdraw money for personal use conveniently. 
D) None of these answers are correct. 
A) to pay for large expenses. 
B) to pay for small expenses. 
C) for the owner to withdraw money for personal use conveniently. 
D) None of these answers are correct.

Question 8

Prepare the required journal entries from the bank reconciliation below as of the end of January:
The balance per general ledger is $200
There is a debit memo for interest expense, $100
There is a debit memo for a customer's NSF check $375
Outstanding checks amount to $2,000
This month's service charge amounts to $75
Deposits in transit amount to $1,500

Accepted Answer

The answer of Prepare the required journal entries from the...

Question 9

From the bank reconciliation no entry was recorded for a debit memo for a new check fee expense. This would cause:

Accepted Answer

A) liabilities to be understated. 
B) liabilities to be overstated. 
C) expenses to be understated. 
D) expenses to be overstated. 
A) liabilities to be understated. 
B) liabilities to be overstated. 
C) expenses to be understated. 
D) expenses to be overstated.

Question 10

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should:

Accepted Answer

A) increase their cash account on the company's books. 
B) decrease their cash account on the company's books. 
C) increase the ending cash balance on the bank statement. 
D) decrease the ending cash balance on the bank statement. 
A) increase their cash account on the company's books. 
B) decrease their cash account on the company's books. 
C) increase the ending cash balance on the bank statement. 
D) decrease the ending cash balance on the bank statement.

Question 11

Internal control over a company's assets should include the following policy:

Accepted Answer

A) Responsibilities and duties of employees will be divided. 
B) All cash receipts will be deposited into the bank the same day they arrive. 
C) All cash payments will be made by check (except petty cash). 
D) All of these answers are correct. 
A) Responsibilities and duties of employees will be divided. 
B) All cash receipts will be deposited into the bank the same day they arrive. 
C) All cash payments will be made by check (except petty cash). 
D) All of these answers are correct.

Question 12

List and describe some of the electronic conveniences that we are now provided when doing our banking.

Accepted Answer

ATM-Automated Teller Machines enable the

Question 13

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 14

Determine the reconciled bank balance given the following:
The balance per bank statement is $ 110
The balance per general ledger is $107
There is a credit memo for a note collected, $408
There is a credit memo for interest earned, $25
There is a debit memo for a customer's NSF check $350
Deposits in transit, $850
Outstanding checks amount to $845
This month's service charge amounts to $50
There is a debit memo for check printing fees, $25
$ ________

Accepted Answer

$115 [$110

Question 15

On a bank reconciliation, outstanding checks are deducted from the balance per books.

Accepted Answer

A) True 
 B)False

Question 16

The entry to replenish the petty cash fund debited Insurance Expense for postage. This would cause:

Accepted Answer

A) Petty Cash to be overstated. 
B) Petty Cash to be understated. 
C) Postage Expense to be overstated. 
D) Insurance Expense to be overstated. 
A) Petty Cash to be overstated. 
B) Petty Cash to be understated. 
C) Postage Expense to be overstated. 
D) Insurance Expense to be overstated.

Question 17

Indicate which effect(s)each situation will have:
1. New check written
2. Recorded in the general journal
3. Recorded in auxiliary petty cash record
4. Petty cash voucher prepared
-________ Bought Supplies on account

Accepted Answer

The answer of Indicate which effect(s)each situation will have:
1. New...

Question 18

The entry establishing a $175 petty cash fund would include a:

Accepted Answer

A) debit to Cash for $175. 
B) credit to Petty Cash for $175. 
C) debit to Petty Cash for $175. 
D) debit to Miscellaneous Expense for $175. 
A) debit to Cash for $175. 
B) credit to Petty Cash for $175. 
C) debit to Petty Cash for $175. 
D) debit to Miscellaneous Expense for $175.

Question 19

A deposit received by the bank will include:

Accepted Answer

A) a debit to the company's bank account. 
B) a credit to the company's bank account. 
C) no increase or decrease is made to the company's bank account. 
D) a credit to the cash account on the company's books. 
A) a debit to the company's bank account. 
B) a credit to the company's bank account. 
C) no increase or decrease is made to the company's bank account. 
D) a credit to the cash account on the company's books.

Question 20

Which of the following accounts would most likely be debited in the replenishment of petty cash?

Accepted Answer

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

Exam 6: Banking Procedure and Control of Cash

The drawer writes the check.

A signature card is kept in the bank files so that possible forgeries could be spotted.

The Petty Cash account is debited when:

The person or company to whom a check is payable is called the:

Determine the cash short (-)or over (+)given the following: The balance per the Petty Cash account $75 The count of coin and currency amounts to $27 There are receipts: for gas of $9, for office supplies of $18, for first aid supplies $14 $ ________

An example of electronic funds transfer is:

A petty cash fund is set up:

From the bank reconciliation no entry was recorded for a debit memo for a new check fee expense. This would cause:

Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should:

Internal control over a company's assets should include the following policy:

List and describe some of the electronic conveniences that we are now provided when doing our banking.

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

On a bank reconciliation, outstanding checks are deducted from the balance per books.

The entry to replenish the petty cash fund debited Insurance Expense for postage. This would cause:

Indicate which effect(s)each situation will have: 1. New check written 2. Recorded in the general journal 3. Recorded in auxiliary petty cash record 4. Petty cash voucher prepared -________ Bought Supplies on account

The entry establishing a $175 petty cash fund would include a:

A deposit received by the bank will include:

Which of the following accounts would most likely be debited in the replenishment of petty cash?

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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