Question 1

Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information:

Accepted Answer

A) $1,250 
B) $1,100 
C) $1,550 
D) $1,350 
A) $1,250 
B) $1,100 
C) $1,550 
D) $1,350

Question 2

Outstanding checks:

Accepted Answer

A) have been subtracted on the bank records but not the checkbook records. 
B) have not been presented to the bank for payment and have not been subtracted from the checkbook. 
C) have not been presented to the bank for payment but have been subtracted in the checkbook. 
D) have been returned to the business for nonpayment. 
A) have been subtracted on the bank records but not the checkbook records. 
B) have not been presented to the bank for payment and have not been subtracted from the checkbook. 
C) have not been presented to the bank for payment but have been subtracted in the checkbook. 
D) have been returned to the business for nonpayment.

Question 3

Bank interest earned on a checking account would be shown on a bank reconciliation as:

Accepted Answer

A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books. 
A) added to the balance per bank statement. 
B) deducted from the balance per bank statement. 
C) added to the balance per books. 
D) deducted from the balance per books.

Question 4

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 5

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) None of these answers are correct. 
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) None of these answers are correct.

Question 6

Checks that have been processed by the bank and are no longer negotiable are:

Accepted Answer

A) outstanding checks. 
B) canceled checks. 
C) checks in process. 
D) blank checks. 
A) outstanding checks. 
B) canceled checks. 
C) checks in process. 
D) blank checks.

Question 7

Transferring money without paper checks is called electronic funds transfer.

Accepted Answer

A) True 
 B)False

Question 8

When completing a bank reconciliation, explain why all adjustments to the checkbook balance require journal entries?

Accepted Answer

Journal entries are required f

Question 9

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 10

A $50 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

Accepted Answer

A) credit to Cash for $30. 
B) credit to Cash for $40. 
C) credit to Petty Cash for $30. 
D) debit to Petty Cash for $40. 
A) credit to Cash for $30. 
B) credit to Cash for $40. 
C) credit to Petty Cash for $30. 
D) debit to Petty Cash for $40.

Question 11

A blank endorsement on a check:

Accepted Answer

A) can be further endorsed by someone else. 
B) cannot be further endorsed by someone else. 
C) is the safest type of endorsement. 
D) permits only the original endorser to get the money. 
A) can be further endorsed by someone else. 
B) cannot be further endorsed by someone else. 
C) is the safest type of endorsement. 
D) permits only the original endorser to get the money.

Question 12

If the ending balance in the Cash Short/Over account is a debit, it indicates that cash shortages have exceeded cash overages for the period.

Accepted Answer

A) True 
 B)False

Question 13

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $400; total coins and currency $404. The summary journal entry to record the day's transactions would include a:

Accepted Answer

A) $400 debit to Cash; $4 debit to Cash Short/Over; and $404 credit to Sales. 
B) $404 debit to Cash; $4 credit to Cash Short/Over; and $400 credit to Sales. 
C) $404 debit to Cash and $404 credit to Sales. 
D) $400 debit to Cash and $400 credit to Sales. 
A) $400 debit to Cash; $4 debit to Cash Short/Over; and $404 credit to Sales. 
B) $404 debit to Cash; $4 credit to Cash Short/Over; and $400 credit to Sales. 
C) $404 debit to Cash and $404 credit to Sales. 
D) $400 debit to Cash and $400 credit to Sales.

Question 14

The drawee is the:

Accepted Answer

A) person who writes the check. 
B) bank that drawer has an account with. 
C) the person to whom the check is payable. 
D) the person who reconciles the account. 
A) person who writes the check. 
B) bank that drawer has an account with. 
C) the person to whom the check is payable. 
D) the person who reconciles the account.

Question 15

The drawee of the check is the person receiving the money.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Prepare a bank reconciliation from the following information:

Accepted Answer

The answer of Prepare a bank reconciliation from the following...

Question 18

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.

Question 19

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
-________ Filled up the company's van with gas

Accepted Answer

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

Question 20

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) None of these are correct. 
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) None of these are correct.

Exam 6: Banking Procedure and Control of Cash

Determine the adjusted cash balance per bank for Santa's Packaging on November 30, from the following information:

Outstanding checks:

Bank interest earned on a checking account would be shown on a bank reconciliation as:

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 restrictive endorsement on a check:

Checks that have been processed by the bank and are no longer negotiable are:

Transferring money without paper checks is called electronic funds transfer.

When completing a bank reconciliation, explain why all adjustments to the checkbook balance require journal entries?

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.

A $50 petty cash fund has cash of $20 and valid receipts for $40. The entry to replenish the fund would include a:

A blank endorsement on a check:

If the ending balance in the Cash Short/Over account is a debit, it indicates that cash shortages have exceeded cash overages for the period.

Vanessa's Gymnastics' cash register tapes do not agree with cash receipts. The facts are: total cash register tapes $400; total coins and currency $404. The summary journal entry to record the day's transactions would include a:

The drawee is the:

The drawee of the check is the person receiving the money.

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: -

Prepare a bank reconciliation from the following information:

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

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 -________ Filled up the company's van with gas

A company would use a change fund if:

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

Filters