Question 1

Which item is NOT an example of an advantage of Online Banking?

Accepted Answer

A)  Phishing 
B)  Perform bank reconciliation more often than monthly 
C)  Transactions confirmed quickly 
D)  Manage all accounts from one secure site 
A)  Phishing 
B)  Perform bank reconciliation more often than monthly 
C)  Transactions confirmed quickly 
D)  Manage all accounts from one secure site

Question 2

A shift in assets occurs when a petty cash account is established.

Accepted Answer

A) True 
 B)False

Question 3

The original amount of the petty cash fund should equal

Accepted Answer

A)  the sum of the petty cash on hand and the paid petty cash vouchers. 
B)  cash on hand at the end of the day. 
C)  the cash received plus the cash in the petty cash box. 
D)  the total payments made during the day. 
A)  the sum of the petty cash on hand and the paid petty cash vouchers. 
B)  cash on hand at the end of the day. 
C)  the cash received plus the cash in the petty cash box. 
D)  the total payments made during the day.

Question 4

The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes 1. A cheque 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 $300 plus interest of $30.
3) Cheques outstanding totaled $360.
4) Bank service charges were $50.
5) Deposits in transit were $2,140.
Which item(s) should be subtracted from the balance per books?

Accepted Answer

A)  Bank service charge 
B)  Cheques outstanding and bank service charge 
C)  Bank service charge and the note collected by the bank 
D)  None of the above are correct. 
A)  Bank service charge 
B)  Cheques outstanding and bank service charge 
C)  Bank service charge and the note collected by the bank 
D)  None of the above are correct.

Question 5

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 6

Prepare journal entries for the following petty cash fund transactions:
Jul. 1    Established a $75 petty cash fund.
9          Increased the petty cash fund to $100.
31       Replenished the petty cash fund. Currency and coins remaining were $20.
            Approved paid vouchers were $12 donation expense, $21 postage expense, $30 office
supplies expense and $17 miscellaneous expense.

Accepted Answer

Jul. 1 Petty Cash 75
Cash 75
J

Question 7

Debit cards can be used in many locations in exactly the same manner as a credit card.

Accepted Answer

A) True 
 B)False

Question 8

NSF is an abbreviation for Not Satisfactory Funding.

Accepted Answer

A) True 
 B)False

Question 9

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. Enter the cash balance according to y

Question 10

Technological controls can include all of the following EXCEPT

Accepted Answer

A)  using digital keycards for access. 
B)  restricting social media access at work. 
C)  requiring passwords on all systems. 
D)  using personal identification scanners. 
A)  using digital keycards for access. 
B)  restricting social media access at work. 
C)  requiring passwords on all systems. 
D)  using personal identification scanners.

Question 11

SWIFT codes are used for

Accepted Answer

A)  identifying a payee in another country. 
B)  speeding up deposits. 
C)  identifying a particular branch of a bank worldwide. 
D)  making certain any cheques written are cleared as soon as possible. 
A)  identifying a payee in another country. 
B)  speeding up deposits. 
C)  identifying a particular branch of a bank worldwide. 
D)  making certain any cheques written are cleared as soon as possible.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Canceled cheques are negotiable at the bank for the face value.

Accepted Answer

A) True 
 B)False

Question 14

Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

Accepted Answer

A)  credit to Cash for $160. 
B)  credit to Petty Cash for $168. 
C)  debit to Cash Short and Over for $8. 
D)  credit to Cash Short and Over for $8. 
A)  credit to Cash for $160. 
B)  credit to Petty Cash for $168. 
C)  debit to Cash Short and Over for $8. 
D)  credit to Cash Short and Over for $8.

Question 15

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 16

The entry to replenish a $100 petty cash fund which has cash of $20 and valid receipts for $76 would include

Accepted Answer

A)  a credit to Cash for $76. 
B)  a debit to Cash for $76. 
C)  a credit to Cash for $80. 
D)  a credit to Petty Cash for $80. 
A)  a credit to Cash for $76. 
B)  a debit to Cash for $76. 
C)  a credit to Cash for $80. 
D)  a credit to Petty Cash for $80.

Question 17

A nonsufficient funds cheque was returned to your company. How does the bank treat this on your bank statement?

Accepted Answer

A)  It is added to the bank balance. 
B)  It is shown as a debit memo. 
C)  It is shown as a credit memo. 
D)  None of these answers are correct. 
A)  It is added to the bank balance. 
B)  It is shown as a debit memo. 
C)  It is shown as a credit memo. 
D)  None of these answers are correct.

Question 18

Misc. Expense ________ ________ ________ ________

Accepted Answer

Misc. Expense: expen

Question 19

A bank statement reports the beginning balance, deposits in transit, cancelled cheques, and outstanding cheques for the month.

Accepted Answer

A) True 
 B)False

Question 20

Cancelled cheques are negotiable at the bank for the face value.

Accepted Answer

A) True 
 B)False

Which item is NOT an example of an advantage of Online Banking?

A shift in assets occurs when a petty cash account is established.

The original amount of the petty cash fund should equal

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.

Debit cards can be used in many locations in exactly the same manner as a credit card.

NSF is an abbreviation for Not Satisfactory Funding.

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

Technological controls can include all of the following EXCEPT

SWIFT codes are used for

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

Canceled cheques are negotiable at the bank for the face value.

Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

A petty cash fund is set up

The entry to replenish a $100 petty cash fund which has cash of $20 and valid receipts for $76 would include

A nonsufficient funds cheque was returned to your company. How does the bank treat this on your bank statement?

Misc. Expense

A bank statement reports the beginning balance, deposits in transit, cancelled cheques, and outstanding cheques for the month.

Cancelled cheques are negotiable at the bank for the face value.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Exam 8: Banking Procedures and Control of Cash

Which item is NOT an example of an advantage of Online Banking?

A shift in assets occurs when a petty cash account is established.

The original amount of the petty cash fund should equal

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.

Debit cards can be used in many locations in exactly the same manner as a credit card.

NSF is an abbreviation for Not Satisfactory Funding.

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

Technological controls can include all of the following EXCEPT

SWIFT codes are used for

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

Canceled cheques are negotiable at the bank for the face value.

Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

A petty cash fund is set up

The entry to replenish a $100 petty cash fund which has cash of $20 and valid receipts for $76 would include

A nonsufficient funds cheque was returned to your company. How does the bank treat this on your bank statement?

Misc. Expense ________ ________ ________ ________

A bank statement reports the beginning balance, deposits in transit, cancelled cheques, and outstanding cheques for the month.

Cancelled cheques are negotiable at the bank for the face value.

Accounting Concepts and Procedures: an Introduction

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle: Journalizing, Posting, and the Trial Balance

The Accounting Cycle Continued: Preparing Worksheets and Financial Statements

The Accounting Cycle Completed: Closing and Post-Closing Trial Balance

Special Journals and Subsidiary Ledgers: the Basics: Sales and Cash

Special Journals and Subsidiary Ledgers: the Basics: Purchases and Cash Payments Journals

Payroll Procedures: the Employees Perspective

The Employers Tax Responsibilities: Principles and Procedures

Special Journals With Taxes

Preparing a Worksheet for a Merchandising Company

Completion of the Accounting Cycle for a Merchandising Company

Filters

Misc. Expense