Question 1

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

Accepted Answer

A) True 
 B)False

Question 2

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

Accepted Answer

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Question 3

On Dec. 31 the checkbook balance of Aster Co. was $1,241.05. The bank statement balance was $1,510. Checks outstanding were $3,052.03. The statement revealed a deposit in transit of $2,800.10 as well as a bank service charge of $12.03. The company earned interest income of $29.05. Complete a bank reconciliation for Aster Co.

Accepted Answer

@#IMG-DLM& $1,241.05 + $29.05

Question 4

NSF results in a bank crediting one's account.

Accepted Answer

A) True 
 B)False

Question 5

Checks written that do not appear on your bank statement are:

Accepted Answer

A) Paid from the previous month 
B) Not written correctly 
C) Appear as a deposit 
D) Credited to savings 
E) None of these 
A) Paid from the previous month 
B) Not written correctly 
C) Appear as a deposit 
D) Credited to savings 
E) None of these

Question 6

Outstanding checks:

Accepted Answer

A) Have been paid by the bank 
B) Are checks returned to the payer 
C) Are bank checks 
D) Have not been received by the bank for processing 
E) None of these 
A) Have been paid by the bank 
B) Are checks returned to the payer 
C) Are bank checks 
D) Have not been received by the bank for processing 
E) None of these

Question 7

On December 31, the checkbook balance of Ray Co. was $5,420.95. The bank statement balance showed $5,102.88. Checks outstanding totaled $813.53. The statement did not show a deposit in transit of $1,102.95. Check charges were $15.88. The company earned interest income of $29.32 that was shown on the report. The bookkeeper forgot to record a check for $42.09. The reconciled balance is:

Accepted Answer

A) $5,392.30 
B) $5,923.03 
C) $5,932.03 
D) $5,392.03 
E) None of these 
A) $5,392.30 
B) $5,923.03 
C) $5,932.03 
D) $5,392.03 
E) None of these

Question 8

Match the following terms with their definitions.
-Deposits in transit

Accepted Answer

A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet 
A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet

Question 9

In the reconciliation process the unrecorded bank service charge is:

Accepted Answer

A) Added to checkbook balance 
B) Deducted from checkbook balance 
C) Added to bank statement balance 
D) Deducted from bank statement balance 
E) None of these 
A) Added to checkbook balance 
B) Deducted from checkbook balance 
C) Added to bank statement balance 
D) Deducted from bank statement balance 
E) None of these

Question 10

Debbie's checkbook balance was $2,715.50. She wrote checks totaling $5,298.13 during the month of May. Deposits made during the month were $250.16 on May 1. On May 15, her payroll check was electronically processed for $2980.66; on May 22, a check from the IRS was electronically processed for $2,550. On May 27, she recorded $534.10 for payments debited to her account for auto insurance and utilities. What is her checkbook balance?

Accepted Answer

$2,715.50 + $$250.16

Question 11

Deposits in transit are the result of outstanding checks.

Accepted Answer

A) True 
 B)False

Question 12

From the following calculate the final balance that was to be carried forward in your check stubs as of the end of October:
Oct. 1 Beg. Balance $1,200.50
Oct. 8 Deposit $300.00
Oct. 12 Check written to Bloom Co. $382.65
Oct. 16 Deposit $400.00
Oct. 28 Check written to Flex Co. $185.99
Oct. 31 Check written to Ryan Co. $88.92

Accepted Answer

Add the deposits and

Question 13

Online banking

Accepted Answer

A) Is never accepted by all banks 
B) Still holds checks for 10 days 
C) Is usually safe 
D) Is very unsafe 
E) None of these 
A) Is never accepted by all banks 
B) Still holds checks for 10 days 
C) Is usually safe 
D) Is very unsafe 
E) None of these

Question 14

Citizen Bank sent a bank statement to Bane Co. showing an ending balance of $1,480. On the bank statement there was a service charge of $20. The bookkeeper of Bane Co. noticed in the reconciliation process a deposit in transit of $200 along with checks outstanding of $300. Complete the reconciliation for Bane assuming a beginning balance of $1,400.

Accepted Answer

A) $1,830.00 
B) $1,138.00 
C) $1,380.00 
D) $1,360.00 
E) None of these 
A) $1,830.00 
B) $1,138.00 
C) $1,380.00 
D) $1,360.00 
E) None of these

Question 15

Match the following terms with their definitions.
-Restrictive endorsement

Accepted Answer

A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet 
A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet

Question 16

ATMs have completely replaced the need for tellers.

Accepted Answer

A) True 
 B)False

Question 17

Match the following terms with their definitions.
-Net deposit

Accepted Answer

A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet 
A) Document that records deposit 
B) Added to bank balance 
C) Used in mobile banking 
D) Automatic teller machines 
E) One to receive amount of check
F)Bank adds to your account
G)Record keeping device
H)Bounced check
I)Check must be deposited to payee's account
J)A report sent by bank
K)Total credit card sales minus credit accounts
L)Identifies to whom check is to be transferred
M)Bank is charging your account
N)No restrictions
O)One who writes a check
P)Eliminates the use of paper checks
Q)Signing back of checks
R)Comparing bank balance to checkbook balance
S)Not processed by bank yet

Question 18

A check stub is completed after the check is written so records will be up to date.

Accepted Answer

A) True 
 B)False

Question 19

The payee is the person to whom the check is payable.

Accepted Answer

A) True 
 B)False

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

NSF results in a bank crediting one's account.

Checks written that do not appear on your bank statement are:

Outstanding checks:

Match the following terms with their definitions. -Deposits in transit

In the reconciliation process the unrecorded bank service charge is:

Deposits in transit are the result of outstanding checks.

Online banking

Match the following terms with their definitions. -Restrictive endorsement

ATMs have completely replaced the need for tellers.

Match the following terms with their definitions. -Net deposit

A check stub is completed after the check is written so records will be up to date.

The payee is the person to whom the check is payable.

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters

Exam 4: Banking

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

NSF results in a bank crediting one's account.

Checks written that do not appear on your bank statement are:

Outstanding checks:

Match the following terms with their definitions. -Deposits in transit

In the reconciliation process the unrecorded bank service charge is:

Deposits in transit are the result of outstanding checks.

Online banking

Match the following terms with their definitions. -Restrictive endorsement

ATMs have completely replaced the need for tellers.

Match the following terms with their definitions. -Net deposit

A check stub is completed after the check is written so records will be up to date.

The payee is the person to whom the check is payable.

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Life, Fire, and Auto Insurance

Stocks, Bonds, and Mutual Funds

Business Statistics

Filters