Question 1

A deposit ticket usually separates checks deposited from coin and currency deposited.

Accepted Answer

A) True 
 B)False

Question 2

Construct the bank reconciliation for Kendra's Tutoring,as of October 31,from the following information:
 $\begin{array}{llcc}
  \text {Ending checkbook balance  } &\$740  \
 \text {  Ending bank statement balance} &540\
 \text {Deposits in transit  } &440\
 \text {
Outstanding checks  } &280\
 \text {Bark service charge (debit memo)  } &40\
 \text {  } &\
\end{array}$

Accepted Answer

None

Question 3

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 4

An error,on the company's books,in recording a $82 deposit as $28 would be included on the bank reconciliation as a(n):

Accepted Answer

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

Question 5

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
-________ Replenishment of petty cash

Accepted Answer

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

Question 6

Prepare journal entries for the following petty cash fund transactions:
Sept. 1 Established a $\$ 200$ petty cash fund.
30 Replenished the petty cash fund. Currency and coins remaining was $\$ 128$; approved paid
vouchers were: $12 donation expense; $18 postage; $24 office supplies expense; and $26 miscellaneous expense.

Accepted Answer

The answer of Prepare journal entries for the following petty...

Question 7

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 8

Riley's Limousines' entry to establish a $75 petty cash fund for the office would include a:

Accepted Answer

A) debit to Cash for $75. 
B) credit to Petty Cash for $75. 
C) credit to Cash for $75. 
D) debit to Office Expense for $75. 
A) debit to Cash for $75. 
B) credit to Petty Cash for $75. 
C) credit to Cash for $75. 
D) debit to Office Expense for $75.

Question 9

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 10

Information to calculate the adjusted cash balance for Sam's Gift Wrapping is as follows: $$\begin{array} { | l | r | } 
\hline \text { Cash balance per general ledger } & \$ 2,100 \
\hline \text { Customer's check returned-NSF } & 75 \
\hline \text { Bank service charges } & 40 \
\hline \text { Deposits in transit } & 500 \
\hline \text { Outstanding checks } & 700 \
\hline \text { Customer's note collected by bank } & 645 \
\hline
\end{array}$$

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 11

The credit recorded in the journal to replenish 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 12

What is the purpose of internal control?

Accepted Answer

Internal control hel

Question 13

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 14

A payment for $31 is incorrectly recorded on the checkbook stub as $13.The $18 error should be shown on the 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 15

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 16

The change fund is what type of account?

Accepted Answer

A) Expense 
B) Revenue 
C) Asset 
D) Liability 
A) Expense 
B) Revenue 
C) Asset 
D) Liability

Question 17

Determine the cash short (-)or over (+)given the following:
The balance per the petty cash account $100
The count of coin and currency amounts to $20
There are receipts: for telephone costs of $25,for supplies of $6,for transportation $6,for funeral flowers $38
$ ________

Accepted Answer

$5 short [

Question 18

Match between columns
                        Premises: ___ e.Outstanding checks
___ c.NSF check
___ a.deposit in transit
___ d.Check written for $95 recorded on the company's ledger as $59
___ h.Interest earned on checking account
___ g.Check printing charges
___ f.Check written for $80 recorded as $800
___ b.bank service charge

Accepted Answer

The Answer of Deduct from checkbook balance and Deduct from is...

Question 19

The Petty Cash account should always be debited when the fund is replenished.

Accepted Answer

A) True 
 B)False

Question 20

Deposits in transit result because of a timing difference between the bank records and checkbook records.

Accepted Answer

A) True 
 B)False

Exam 6: Banking Procedure and Control of Cash

A deposit ticket usually separates checks deposited from coin and currency deposited.

Construct the bank reconciliation for Kendra's Tutoring,as of October 31,from the following information: Ending checkbook balance \7 40 Ending bank statement balance 540 Deposits in transit 440 Outstanding checks 280 Bark service charge (debit memo) 40

A deposit received by the bank will include:

An error,on the company's books,in recording a $82 deposit as $28 would be included on the bank reconciliation as a(n):

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 -________ Replenishment of petty cash

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

Riley's Limousines' entry to establish a $75 petty cash fund for the office would include a:

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

Information to calculate the adjusted cash balance for Sam's Gift Wrapping is as follows: Cash balance per general ledger \ 2,100 Customer's check returned-NSF 75 Bank service charges 40 Deposits in transit 500 Outstanding checks 700 Customer's note collected by bank 645

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

What is the purpose of internal control?

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

A payment for $31 is incorrectly recorded on the checkbook stub as $13.The $18 error should be shown on the bank reconciliation as:

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

The change fund is what type of account?

Determine the cash short (-)or over (+)given the following: The balance per the petty cash account $100 The count of coin and currency amounts to $20 There are receipts: for telephone costs of $25,for supplies of $6,for transportation $6,for funeral flowers $38 $ ________

The Petty Cash account should always be debited when the fund is replenished.

Deposits in transit result because of a timing difference between the bank records and checkbook records.

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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