Question 1

A receipt called a petty cash voucher should be prepared for every payment from the petty cash fund.

Accepted Answer

A) True 
 B)False

Question 2

To reconcile the bank statement,which of the following amounts would be added to the bank statement balance?

Accepted Answer

A)  service charge 
B)  outstanding checks 
C)  deposits in transit 
D)  amounts collected by the bank for the depositor's account 
A)  service charge 
B)  outstanding checks 
C)  deposits in transit 
D)  amounts collected by the bank for the depositor's account

Question 3

If the cash short and over account has a credit balance at the end of the fiscal year,the balance represents an expense or loss.

Accepted Answer

A) True 
 B)False

Question 4

Match the terms with the definitions.
-A process using a computer rather than paper checks to complete transactions with the bank.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 5

A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 6

Match the terms with the definitions.
-A report used to bring the book and bank balances into agreement.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 7

Match the terms with the definitions.
-Machines used by depositors to make withdrawals or deposits at any time.

Accepted Answer

A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos 
A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos

Question 8

Match the terms with the definitions.
-The bank on which the check is drawn.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 9

Match the terms with the definitions.
-Stamping or writing the depositor's name and sometimes other information on the back of the check.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 10

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $5; a deposit in transit totals $500; and outstanding checks total $300.The journal entry for a bank service charge would include

Accepted Answer

A)  debiting Cash and crediting Miscellaneous Expense. 
B)  debiting Cash and crediting Owner's Capital. 
C)  debiting Accounts Payable and crediting Cash. 
D)  debiting Miscellaneous Expense and crediting Cash. 
A)  debiting Cash and crediting Miscellaneous Expense. 
B)  debiting Cash and crediting Owner's Capital. 
C)  debiting Accounts Payable and crediting Cash. 
D)  debiting Miscellaneous Expense and crediting Cash.

Question 11

Banks providing check printing and processing will typically assess fees known as ____________________.

Accepted Answer

The answer of Banks providing check printing and processing will...

Question 12

On May 1,a petty cash fund was established for $200.The following vouchers were issued during May.
Required:
 $\begin{array}{rcllc}
 \underline{\text { Date}}& \underline{\text {  Voucher  }}& \underline{\text { Purpose }} & \underline{\text { Amount }}\
\text { May } \quad 1 & 1 & \text { Office supplies } & \$ 3.00 \
3 & 2 & \text { Birthday gift for office worker (misc.) } & 15.00 \
5 & 3 & \text { Mileage reimbursement } & 5.00 \
7 & 4 & \text { Postage due } & 2.00\
8 & 5 & \text { Office supplies } & 4.00 \
11 & 6 & \text { Donation-Goodwill (contribution exp.) } & 10.00 \
15 & 7 & \text { Telephone call (telephone exp.) } & 5.00 \
21 & 8 & \text { Mileage reimbursement } & 11.00 \
23 & 9 & \text { Withdrawal by owner (Carla Sanchez) } & 20.00 \
25 & 10 & \text { Postage due } & 3.50 \
26 & 11 & \text { Office supplies } & 17.00 \
28 & 12 & \text { Copier repair (misc.) } & 18.50
\end{array}$ 
1.Prepare the journal entry to establish the petty cash fund on May 1.
2.Record the vouchers in the petty cash record.Total and rule the petty cash record.
3.Prepare the journal entry to replenish the petty cash fund.Make the appropriate entry in the petty cash record.
   $\text { PETTY CASH PAYMENTS FOR THE MONTH OF May, 20-- } \quad \text { Page } 1 >$
$\begin{array}{|c|c|c|c|}
\hline \text { Day } & \text { Description } \quad\quad\quad\quad\quad\quad& \text { Voucher No. } & \text { Total Amount } \
\hline & \text { Received in fund... } & & \
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline\
\hline
\end{array}$

Accepted Answer

? PETTY CASH PAYMENTS FOR THE MONTH OF M

Question 13

Match the terms with the definitions.
-Items that the bank deducts from the account.

Accepted Answer

A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos 
A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos

Question 14

Using the following information,prepare the journal entries to:
a.
Establish a $200 petty cash fund on January 2.
b.
Reimburse the petty cash fund at the end of the month.
 $\begin{array}{lclc}
 \underline{\text { Date}}& \underline{\text {  Voucher No. }}& \underline{\text { Purpose }} & \underline{\text { Amount }}\
\text { Jan. }\quad2&1 & \text { Office supplies } & \$ 15 \
\quad\quad\quad6 & 2 & \text { Withdrawal by owner } & 20 \
\quad\quad\quad7 & 3 & \text { Lunch with client } & 35\
\quad\quad\quad7 & 4 & \text { Postage } & 12 \
\quad\quad\quad8 & 5 & \text { Donation to United Way } & 25 \
\quad\quad\quad12 & 6 & \text { Telephone repair } & 32 \
\quad\quad\quad23 & 7 & \text { Office supplies } & 15 \
\quad\quad\quad28 & 8 & \text { Lunch with client } & 40
\end{array}$

Accepted Answer

The answer of Using the following information,prepare the journal entries...

Question 15

Match the terms with the definitions.
-The depositor's checks paid by the bank during the bank statement period.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 16

The term "cash" has several different meanings.

Accepted Answer

A) True 
 B)False

Question 17

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $15; a deposit in transit totals $500,and outstanding checks total $300.The adjusted book balance is

Accepted Answer

A)  $1,490. 
B)  $1,205. 
C)  $1,190. 
D)  $1,505. 
A)  $1,490. 
B)  $1,205. 
C)  $1,190. 
D)  $1,505.

Question 18

Sal's Surf Shop deposits all receipts in the bank and makes all payments by check.On July 31 the cash account had a balance of $6,105.42.The bank statement on July 31 reported a balance of $4,146.46.Upon comparing the bank statement to the books,the following items were found.
?
?
 a. A. bank debit memo issued for an NSF check from a customer of $ \$ 21.25 $.
b. Abank credit memo issued for interest of $ \$ 8.50 $ earned during the month.
c. During the evening of July 31 , a deposit of $ \$ 1,948.25 $ was made, which is not shown on the bank statement.
d. A. bank debit memo issued for $ \$ 18.50 $ for bank service charges.
e. Checks for the amounts of $ \$ 34.00, \$ 17.85 $, and $ \$ 93.25 $ were written during July but have not yet been received by the bank.
f. The reconciliation from the previous month, June, showed outstanding checks of $ \$ 260.80 $. One of these checks in the amount of $ \$ 7.38 $ has not yet been received by the bank.
g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $ \$ 18.90 $ was deducted as $ \$ 19.80 $ by the bank.
h. It was discovered that a check written to a creditor in the amount of $ \$ 145.60 $ was recorded in the books as $ \$ 14.56 $. Required:
1.Prepare a bank reconciliation as of July 31.
2.Prepare the necessary general journal entries from the bank reconciliation.

Accepted Answer

None

Question 19

The ____________________ is a supply of currency and coins kept in a cash drawer for use in handling cash transactions.

Accepted Answer

The answer of The ____________________ is a supply of currency...

Question 20

The bank statement for a checking account normally shows the

Accepted Answer

A)  amounts of deposits to be made. 
B)  amount of deposits and other credits added during the period. 
C)  checks written but not yet cashed. 
D)  amounts to be collected by the bank for the depositor's account. 
A)  amounts of deposits to be made. 
B)  amount of deposits and other credits added during the period. 
C)  checks written but not yet cashed. 
D)  amounts to be collected by the bank for the depositor's account.

A receipt called a petty cash voucher should be prepared for every payment from the petty cash fund.

To reconcile the bank statement,which of the following amounts would be added to the bank statement balance?

If the cash short and over account has a credit balance at the end of the fiscal year,the balance represents an expense or loss.

Match the terms with the definitions. -A process using a computer rather than paper checks to complete transactions with the bank.

A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.

Match the terms with the definitions. -A report used to bring the book and bank balances into agreement.

Match the terms with the definitions. -Machines used by depositors to make withdrawals or deposits at any time.

Match the terms with the definitions. -The bank on which the check is drawn.

Match the terms with the definitions. -Stamping or writing the depositor's name and sometimes other information on the back of the check.

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $5; a deposit in transit totals $500; and outstanding checks total $300.The journal entry for a bank service charge would include

Banks providing check printing and processing will typically assess fees known as ____________________.

Match the terms with the definitions. -Items that the bank deducts from the account.

Match the terms with the definitions. -The depositor's checks paid by the bank during the bank statement period.

The term "cash" has several different meanings.

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $15; a deposit in transit totals $500,and outstanding checks total $300.The adjusted book balance is

The ____________________ is a supply of currency and coins kept in a cash drawer for use in handling cash transactions.

The bank statement for a checking account normally shows the

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters

Exam 7: Accounting for Cash

A receipt called a petty cash voucher should be prepared for every payment from the petty cash fund.

To reconcile the bank statement,which of the following amounts would be added to the bank statement balance?

If the cash short and over account has a credit balance at the end of the fiscal year,the balance represents an expense or loss.

Match the terms with the definitions. -A process using a computer rather than paper checks to complete transactions with the bank.

A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.

Match the terms with the definitions. -A report used to bring the book and bank balances into agreement.

Match the terms with the definitions. -Machines used by depositors to make withdrawals or deposits at any time.

Match the terms with the definitions. -The bank on which the check is drawn.

Match the terms with the definitions. -Stamping or writing the depositor's name and sometimes other information on the back of the check.

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $5; a deposit in transit totals $500; and outstanding checks total $300.The journal entry for a bank service charge would include

Banks providing check printing and processing will typically assess fees known as ____________________.

Match the terms with the definitions. -Items that the bank deducts from the account.

Match the terms with the definitions. -The depositor's checks paid by the bank during the bank statement period.

The term "cash" has several different meanings.

In reconciling a bank statement,the bank statement balance is $1,000 and the balance per books is $1,205.A bank service charge is $15; a deposit in transit totals $500,and outstanding checks total $300.The adjusted book balance is

The ____________________ is a supply of currency and coins kept in a cash drawer for use in handling cash transactions.

The bank statement for a checking account normally shows the

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Module Accounting For A Professional Service Business The Combination Journal

Filters