Question 1

Match the terms below with the correct definitions.
-This transfers title to the money and authorizes payment of the check

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

Question 2

A bank statement balance of cash should always match the ledger balance of cash.

Accepted Answer

A) True 
 B)False

Question 3

A check recorded on a deposit slip should be listed by its ABA number and its dollar amount.

Accepted Answer

A) True 
 B)False

Question 4

Two bank statement amounts that require journal entries are

Accepted Answer

A)  collection of a note receivable and deposits in transit. 
B)  bank service charges and an NSF check. 
C)  outstanding checks and an error in recording a check. 
D)  deposits in transit and bank service charges. 
E)  deposits in transit and outstanding checks. 
A)  collection of a note receivable and deposits in transit. 
B)  bank service charges and an NSF check. 
C)  outstanding checks and an error in recording a check. 
D)  deposits in transit and bank service charges. 
E)  deposits in transit and outstanding checks.

Question 5

Aquamarine Co. establishes a Change Fund of $450. Which of the following journal entries records this transaction?

Accepted Answer

A)  
Accounts Payable $\quad\$ 450$
Other Income $\quad \$ 450$ 
B) 
Change Fund $\quad \$ 450$
Cash $\quad \$ 450$ 
C)  
$\text { Petty Cash Fund } \$ 450$
$\text { Cash } \quad \$ 450$ 
D)  
Change Fund $\quad \$ 450$
Petty Cash Fund $\quad \$ 450$ 
A)  
Accounts Payable $\quad\$ 450$
Other Income $\quad \$ 450$ 
B) 
Change Fund $\quad \$ 450$
Cash $\quad \$ 450$ 
C)  
$\text { Petty Cash Fund } \$ 450$
$\text { Cash } \quad \$ 450$ 
D)  
Change Fund $\quad \$ 450$
Petty Cash Fund $\quad \$ 450$

Question 6

On a bank statement, an NSF check is usually listed as a debit memorandum.

Accepted Answer

A) True 
 B)False

Question 7

Match the terms below with the correct definitions.
-Person to whom a check is payable

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

Question 8

An NSF check held by the payee should be carried on the payee's records as

Accepted Answer

A)  Cash Short and Over. 
B)  an account receivable. 
C)  an account payable. 
D)  part of cash on hand. 
E)  a note receivable. 
A)  Cash Short and Over. 
B)  an account receivable. 
C)  an account payable. 
D)  part of cash on hand. 
E)  a note receivable.

Question 9

San Jose Co. establishes a Change Fund of $200. At the end of the day, San Jose Co. has $2,350 on hand. The journal entry to record the day's receipts would be

Accepted Answer

A)  
$\text { Cash } \quad \$ 2,350$
Income from Services$ \quad\$ 2,350 $ 
B)  
$\text { Change Fund } \quad \$ 2,150$
$\text { Cash } \quad \$ 2,150$ 
C)  
$\text { Cash } \quad \$ 2,150$
$\text { Income from Services } \quad \$ 2,150$ 
D)  
$\begin{array} { l l } 
\text { Change Fund } & \$ 2,350 \
\text { Income from Services } & \$ 2,350
\end{array}$ 
A)  
$\text { Cash } \quad \$ 2,350$
Income from Services$ \quad\$ 2,350 $ 
B)  
$\text { Change Fund } \quad \$ 2,150$
$\text { Cash } \quad \$ 2,150$ 
C)  
$\text { Cash } \quad \$ 2,150$
$\text { Income from Services } \quad \$ 2,150$ 
D)  
$\begin{array} { l l } 
\text { Change Fund } & \$ 2,350 \
\text { Income from Services } & \$ 2,350
\end{array}$

Question 10

After preparing the bank reconciliation, journal entries must be prepared for

Accepted Answer

A)  any errors made on the books revealed by the bank reconciliation. 
B)  any errors made by the bank revealed by the bank reconciliation. 
C)  all items on the bank's side. 
D)  only outstanding checks. 
E)  only deposits in transit. 
A)  any errors made on the books revealed by the bank reconciliation. 
B)  any errors made by the bank revealed by the bank reconciliation. 
C)  all items on the bank's side. 
D)  only outstanding checks. 
E)  only deposits in transit.

Question 11

A check that is outstanding for two consecutive months should be included on the bank reconciliation for the first month only.

Accepted Answer

A) True 
 B)False

Question 12

Henry Co. establishes a Petty Cash Fund of $150. The journal entry to establish the fund would be:

Accepted Answer

A)  
Petty Cash Fund $\quad\$ 150$
Cash $\quad\$ 150$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \$ 150 \
\text { Petty Cash Fund } & \$ 150
\end{array}$ 
C)  
Supplies Expense $\quad\$ 150$
Cash $\quad\$ 150$ 
D)  none of the answers listed. 
A)  
Petty Cash Fund $\quad\$ 150$
Cash $\quad\$ 150$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \$ 150 \
\text { Petty Cash Fund } & \$ 150
\end{array}$ 
C)  
Supplies Expense $\quad\$ 150$
Cash $\quad\$ 150$ 
D)  none of the answers listed.

Question 13

Arthur Co. establishes a Petty Cash Fund of $500. The journal entry recorded includes a:

Accepted Answer

A)  debit to Accounts Receivables. 
B)  credit to Administrative Expense. 
C)  debit to Petty Cash Fund. 
D)  credit to Capital. 
A)  debit to Accounts Receivables. 
B)  credit to Administrative Expense. 
C)  debit to Petty Cash Fund. 
D)  credit to Capital.

Question 14

Which of the following represents good internal control procedures concerning cash payments?

Accepted Answer

A)  Allow anyone to access petty cash. 
B)  Make sure that all cash payments are made by check (with the exception of petty cash). 
C)  Assign an employee responsibility of preparing the checks, signing the checks, and preparing the bank reconciliation. 
D)  Keep check supplies available to all employees. 
A)  Allow anyone to access petty cash. 
B)  Make sure that all cash payments are made by check (with the exception of petty cash). 
C)  Assign an employee responsibility of preparing the checks, signing the checks, and preparing the bank reconciliation. 
D)  Keep check supplies available to all employees.

Question 15

From a bank's viewpoint, a customer's account in the bank is considered a:

Accepted Answer

A)  revenue. 
B)  surplus. 
C)  contra asset. 
D)  donation. 
E)  liability. 
A)  revenue. 
B)  surplus. 
C)  contra asset. 
D)  donation. 
E)  liability.

Question 16

After a bank reconciliation has been completed, the accountant must make journal entries to record the outstanding checks.

Accepted Answer

A) True 
 B)False

Question 17

The entry to reimburse the Petty Cash Fund includes a

Accepted Answer

A)  credit to Petty Cash Fund. 
B)  debit to Cash. 
C)  credit to Accounts Payable. 
D)  debit to Petty Cash Fund. 
E)  debit to various accounts upon which the money was spent. 
A)  credit to Petty Cash Fund. 
B)  debit to Cash. 
C)  credit to Accounts Payable. 
D)  debit to Petty Cash Fund. 
E)  debit to various accounts upon which the money was spent.

Question 18

An entry is made to the Change Fund account each time a deposit is made.

Accepted Answer

A) True 
 B)False

Question 19

A journal entry debiting Cash and crediting Accounts Receivable is required for an NSF check.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is deducted from the ledger balance of cash in a bank reconciliation statement?

Accepted Answer

A)  A bank service charge 
B)  A deposit in transit 
C)  A bank note redeemed 
D)  A check collected 
E)  A bank credit memo 
A)  A bank service charge 
B)  A deposit in transit 
C)  A bank note redeemed 
D)  A check collected 
E)  A bank credit memo

Match the terms below with the correct definitions. -This transfers title to the money and authorizes payment of the check

A bank statement balance of cash should always match the ledger balance of cash.

A check recorded on a deposit slip should be listed by its ABA number and its dollar amount.

Two bank statement amounts that require journal entries are

Aquamarine Co. establishes a Change Fund of $450. Which of the following journal entries records this transaction?

On a bank statement, an NSF check is usually listed as a debit memorandum.

Match the terms below with the correct definitions. -Person to whom a check is payable

An NSF check held by the payee should be carried on the payee's records as

San Jose Co. establishes a Change Fund of $200. At the end of the day, San Jose Co. has $2,350 on hand. The journal entry to record the day's receipts would be

After preparing the bank reconciliation, journal entries must be prepared for

A check that is outstanding for two consecutive months should be included on the bank reconciliation for the first month only.

Henry Co. establishes a Petty Cash Fund of $150. The journal entry to establish the fund would be:

Arthur Co. establishes a Petty Cash Fund of $500. The journal entry recorded includes a:

Which of the following represents good internal control procedures concerning cash payments?

From a bank's viewpoint, a customer's account in the bank is considered a:

After a bank reconciliation has been completed, the accountant must make journal entries to record the outstanding checks.

The entry to reimburse the Petty Cash Fund includes a

An entry is made to the Change Fund account each time a deposit is made.

A journal entry debiting Cash and crediting Accounts Receivable is required for an NSF check.

Which of the following is deducted from the ledger balance of cash in a bank reconciliation statement?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 6: Bank Accounts, Cash Funds, and Internal Controls

Match the terms below with the correct definitions. -This transfers title to the money and authorizes payment of the check

A bank statement balance of cash should always match the ledger balance of cash.

A check recorded on a deposit slip should be listed by its ABA number and its dollar amount.

Two bank statement amounts that require journal entries are

Aquamarine Co. establishes a Change Fund of $450. Which of the following journal entries records this transaction?

On a bank statement, an NSF check is usually listed as a debit memorandum.

Match the terms below with the correct definitions. -Person to whom a check is payable

An NSF check held by the payee should be carried on the payee's records as

San Jose Co. establishes a Change Fund of $200. At the end of the day, San Jose Co. has $2,350 on hand. The journal entry to record the day's receipts would be

After preparing the bank reconciliation, journal entries must be prepared for

A check that is outstanding for two consecutive months should be included on the bank reconciliation for the first month only.

Henry Co. establishes a Petty Cash Fund of $150. The journal entry to establish the fund would be:

Arthur Co. establishes a Petty Cash Fund of $500. The journal entry recorded includes a:

Which of the following represents good internal control procedures concerning cash payments?

From a bank's viewpoint, a customer's account in the bank is considered a:

After a bank reconciliation has been completed, the accountant must make journal entries to record the outstanding checks.

The entry to reimburse the Petty Cash Fund includes a

An entry is made to the Change Fund account each time a deposit is made.

A journal entry debiting Cash and crediting Accounts Receivable is required for an NSF check.

Which of the following is deducted from the ledger balance of cash in a bank reconciliation statement?

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters