Question 1

Advantages of on-line banking include:

Accepted Answer

A) convenience. 
B) transaction speed. 
C) effectiveness. 
D) All of the above are correct. 
A) convenience. 
B) transaction speed. 
C) effectiveness. 
D) All of the above are correct.

Question 2

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 3

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 4

When a bank credits your account,it is decreasing the balance.

Accepted Answer

A) True 
 B)False

Question 5

Cash Short and Over is:

Accepted Answer

A) a Misc.Expense account. 
B) a Misc.Revenue account. 
C) a Misc.Expense or Misc.Revenue account depending on the balance in the account. 
D) neither a Misc.Expense nor Misc.Revenue. 
A) a Misc.Expense account. 
B) a Misc.Revenue account. 
C) a Misc.Expense or Misc.Revenue account depending on the balance in the account. 
D) neither a Misc.Expense nor Misc.Revenue.

Question 6

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 check...

Question 7

Prepare journal entries for the following petty cash fund transactions:
Nov. 1 Established a $\$ 75$ petty cash fund.
15 Increased the petty cash fund to have a new balance of $\$ 100$.
30 Replenished the petty cash fund. Currency and coins remaining were $\$ 30$.
Approved paid vouchers were: $10 donation expense; $16 postage expense; $30 office supplies expense; and $20 misc. expense.

Accepted Answer

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

Question 8

Phishing occurs when a bank customer receives an email requesting personal information.

Accepted Answer

A) True 
 B)False

Question 9

The entry to replenish the petty cash fund included a debit to Equipment instead of Supplies for the purchase of supplies.This would cause:

Accepted Answer

A) petty cash to be overstated. 
B) petty cash to be understated. 
C) assets to be overstated. 
D) supplies to be understated. 
A) petty cash to be overstated. 
B) petty cash to be understated. 
C) assets to be overstated. 
D) supplies to be understated.

Question 10

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
-________ Establishment of petty cash

Accepted Answer

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

Question 11

Construct the bank reconciliation for Mitter Company as of July 31,from the following information:
 a.$\begin{array}{llcc}
  \text {  Ealance per bark statement } &\$9,150  \
\end{array}$

b. $\begin{array}{llcc}
  \text { Deposit in transit } &&&&&&750  \
\end{array}$

c. $\begin{array}{llcc}
  \text {Checkbook brlance  } &&&& &9,250 \
\end{array}$

d.$\begin{array}{llcc}
  \text {  Outstanding checks } &&&&&800  \
\end{array}$

e. $\begin{array}{llcc}
  \text { NSF check (debit memo) } &&&220  \
\end{array}$

f. $\begin{array}{llcc}
  \text {Service charges  } &&&&&&& &115 \
\end{array}$

g. $\begin{array}{llcc}
  \text { Interest earned on account } &&&140  \
\end{array}$

Accepted Answer

None

Question 12

When the bank pays a check written by the company,it would:

Accepted Answer

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

Question 13

What type of an account is the petty cash fund?

Accepted Answer

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

Question 14

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 15

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 16

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

Accepted Answer

A) They would be added to the balance of the bank statement. 
B) They would be subtracted from the balance of the bank statement. 
C) They would be added to the balance per books. 
D) They would be ignored. 
A) They would be added to the balance of the bank statement. 
B) They would be subtracted from the balance of the bank statement. 
C) They would be added to the balance per books. 
D) They would be ignored.

Question 17

The drawee of a check is normally the bank.

Accepted Answer

A) True 
 B)False

Question 18

A nonsufficient funds check 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 19

From the following information,prepare the bank reconciliation for Paul's Photography Studio for June.
 $\begin{array}{llcc}
  \text { Ending checkbook balance } & \$ 90 \
 \text { Ending bark statement balance } &30\
 \text {  Deposits in transit} &90\
 \text {  outstanding checks} &40\
 \text {  Service Gharge} &10\

\end{array}$

Accepted Answer

None

Question 20

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.

Exam 6: Banking Procedure and Control of Cash

Advantages of on-line banking include:

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

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.

When a bank credits your account,it is decreasing the balance.

Cash Short and Over is:

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

Phishing occurs when a bank customer receives an email requesting personal information.

The entry to replenish the petty cash fund included a debit to Equipment instead of Supplies for the purchase of supplies.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 -________ Establishment of petty cash

When the bank pays a check written by the company,it would:

What type of an account is the petty cash fund?

A restrictive endorsement on a check:

A blank endorsement on a check:

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

The drawee of a check is normally the bank.

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

From the following information,prepare the bank reconciliation for Paul's Photography Studio for June. Ending checkbook balance \ 90 Ending bark statement balance 30 Deposits in transit 90 outstanding checks 40 Service Gharge 10

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

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