Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

A cash sale of merchandise would be recorded in

Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600) is sold on account. If the bill is paid within ten days, the amount of the purchase discount is.

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980; the canceled check was properly listed on the bank statement at $890. To arrive at an accurate balance on a bank reconciliation statement, the error should be

Grouping all transactions involving cash payments together in the cash payments journal strengthens the audit trail.

To record payment of sales tax owed, the accountant would debit ____________________ and credit Cash.

The entry to replenish petty cash includes a debit to Petty Cash Fund and a credit to Cash.

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?

Which of the following statements is not correct?

To record the payment of a purchase invoice when a cash discount is taken, the accountant would

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ____________________ the bank statement.

Checks issued by a firm that were paid by the bank and returned to the firm with the bank statement are called ____________________ checks.

The person or firm that issues a check is called the ____________________, or payer.

Checks issued by a firm and entered in its records that have not been paid by the bank are called ____________________ checks.

A firm appropriately wrote a check for $78 but entered the amount as payment of $87 in its records. On a bank reconciliation statement this error would be shown as

After a multicolumn special journal such as a cash receipts journal is totaled, it should be proved to be sure that the debits and credits in the journal are equal.

The cash receipts journal for Arlen Company is shown below. Describe how the amounts would be posted to the general ledger accounts.

If a firm's bank reconciliation statement shows a bank statement balance of $12,000, total deposits in transit of $1,500, and total outstanding checks of $1,000, the adjusted bank balance is ____________________.

Cash Short or Over is an expense account when it has a debit balance.

Match the accounting terms with the description by entering the proper letter in the space provided.

To arrive at an accurate balance on a bank reconciliation statement, a credit memorandum from the bank for the collection of a note and interest should be