Question 1

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

Accepted Answer

A) True 
 B)False

Question 2

A cash shortage exists when

Accepted Answer

A) the day's receipts are less than the cash register reading. 
B) the day's receipts are more than the cash register reading. 
C) the day's receipts are equal to the cash register reading. 
D) none of the answers listed. 
A) the day's receipts are less than the cash register reading. 
B) the day's receipts are more than the cash register reading. 
C) the day's receipts are equal to the cash register reading. 
D) none of the answers listed.

Question 3

Which of the following statements is correct concerning a Petty Cash Fund?

Accepted Answer

A) When reimbursing the Petty Cash Fund, the Petty Cash Fund account would be debited. 
B) If no change is made in the size of the fund, the Petty Cash Fund account is debited only when the fund is first established. 
C) If the Petty Cash Fund amount is decreased, the Petty Cash Fund account would be debited. 
D) The Petty Cash Fund is not listed on the financial statements. 
A) When reimbursing the Petty Cash Fund, the Petty Cash Fund account would be debited. 
B) If no change is made in the size of the fund, the Petty Cash Fund account is debited only when the fund is first established. 
C) If the Petty Cash Fund amount is decreased, the Petty Cash Fund account would be debited. 
D) The Petty Cash Fund is not listed on the financial statements.

Question 4

At the end of the fiscal period, the Cash Short and Over account has a credit balance. This amount would be

Accepted Answer

A) included as part of Miscellaneous Income on the Income Statement. 
B) included as part of Miscellaneous Expense on the Income Statement. 
C) shown as a separate account on the Balance Sheet. 
D) none of the answers listed. 
A) included as part of Miscellaneous Income on the Income Statement. 
B) included as part of Miscellaneous Expense on the Income Statement. 
C) shown as a separate account on the Balance Sheet. 
D) none of the answers listed.

Question 5

If the Cash Short and Over account has a debit balance at the end of a month, it indicates a net shortage.

Accepted Answer

A) True 
 B)False

Question 6

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Accepted Answer

A) Debit Cash, $345; credit Sales, $345 
B) Debit Cash, $443; credit Sales, $443 
C) Debit Cash, $443; credit Cash Short and Over, $98; credit Sales, $345 
D) Debit Cash, $343; debit Change Fund, $100; credit Sales, $443 
E) Debit Cash, $343; debit Cash Short and Over $2; credit Sales $345 
A) Debit Cash, $345; credit Sales, $345 
B) Debit Cash, $443; credit Sales, $443 
C) Debit Cash, $443; credit Cash Short and Over, $98; credit Sales, $345 
D) Debit Cash, $343; debit Change Fund, $100; credit Sales, $443 
E) Debit Cash, $343; debit Cash Short and Over $2; credit Sales $345

Question 7

Match the terms below with the correct definitions.
  
-A fraud prevention cash management program offered by banks in an attempt to protect customers and the bank

Accepted Answer

The answer of Match the terms below with the correct...

Question 8

On a bank reconciliation, a debit memorandum indicating the bank service charge is subtracted from the ledger balance of cash.

Accepted Answer

A) True 
 B)False

Question 9

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

Accepted Answer

A) True 
 B)False

Question 10

At the end of the fiscal period, the credit balance in Cash Short and Over is reported as

Accepted Answer

A) an other expense on the income statement. 
B) an asset on the balance sheet. 
C) an other revenue on the income statement. 
D) a liability on the balance sheet. 
E) part of owner's equity on the balance sheet. 
A) an other expense on the income statement. 
B) an asset on the balance sheet. 
C) an other revenue on the income statement. 
D) a liability on the balance sheet. 
E) part of owner's equity on the balance sheet.

Question 11

The person to whom a check is drawn is referred to as the payee.

Accepted Answer

A) True 
 B)False

Question 12

The amount on the cash register tape indicates the revenue earned, and the cash count will always agree with it.

Accepted Answer

A) True 
 B)False

Question 13

If cash amounts to $1,585, excluding the Change Fund, and the cash register tape shows cash sales of $1,570, then Cash Short and Over is credited for $15.

Accepted Answer

A) True 
 B)False

Question 14

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 15

Match the terms below with the correct definitions.
  
-A record indicating the amount of each petty cash voucher

Accepted Answer

The answer of Match the terms below with the correct...

Question 16

If the Petty Cash Fund is not replenished on the balance sheet date,

Accepted Answer

A) income will be understated. 
B) both assets and liabilities will be understated. 
C) assets will be understated. 
D) liabilities will be overstated. 
E) both assets and income will be overstated. 
A) income will be understated. 
B) both assets and liabilities will be understated. 
C) assets will be understated. 
D) liabilities will be overstated. 
E) both assets and income will be overstated.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

The journal entry to record an NSF check would require a

Accepted Answer

A) debit to Accounts Receivable and a credit to Cash. 
B) debit to Cash and a credit to Accounts Receivable. 
C) debit to Accounts Payable and a credit to Cash. 
D) debit to Miscellaneous Expense and a credit to Cash. 
E) debit to Cash and a credit to Accounts Payable. 
A) debit to Accounts Receivable and a credit to Cash. 
B) debit to Cash and a credit to Accounts Receivable. 
C) debit to Accounts Payable and a credit to Cash. 
D) debit to Miscellaneous Expense and a credit to Cash. 
E) debit to Cash and a credit to Accounts Payable.

Question 19

Argee Co. maintains a Cash Short and Over account. During May, Argee Co. had the following selected transactions:
   Instructions:
Record the transactions in general journal form on page 18.

Accepted Answer

The answer of Argee Co. maintains a Cash Short and...

Question 20

On a bank statement, a deposit of $402 was recorded as $204. The difference of $198 should be treated as a(n)

Accepted Answer

A) deduction from the ledger balance of cash. 
B) addition to the bank statement balance. 
C) deduction from the bank statement balance. 
D) addition to the ledger balance of cash. 
E) addition to the Sales account. 
A) deduction from the ledger balance of cash. 
B) addition to the bank statement balance. 
C) deduction from the bank statement balance. 
D) addition to the ledger balance of cash. 
E) addition to the Sales account.

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

A cash shortage exists when

Which of the following statements is correct concerning a Petty Cash Fund?

At the end of the fiscal period, the Cash Short and Over account has a credit balance. This amount would be

If the Cash Short and Over account has a debit balance at the end of a month, it indicates a net shortage.

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Match the terms below with the correct definitions. -A fraud prevention cash management program offered by banks in an attempt to protect customers and the bank

On a bank reconciliation, a debit memorandum indicating the bank service charge is subtracted from the ledger balance of cash.

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

At the end of the fiscal period, the credit balance in Cash Short and Over is reported as

The person to whom a check is drawn is referred to as the payee.

The amount on the cash register tape indicates the revenue earned, and the cash count will always agree with it.

If cash amounts to $1,585, excluding the Change Fund, and the cash register tape shows cash sales of $1,570, then Cash Short and Over is credited for $15.

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

Match the terms below with the correct definitions. -A record indicating the amount of each petty cash voucher

If the Petty Cash Fund is not replenished on the balance sheet date,

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

The journal entry to record an NSF check would require a

Argee Co. maintains a Cash Short and Over account. During May, Argee Co. had the following selected transactions: Instructions: Record the transactions in general journal form on page 18.

On a bank statement, a deposit of $402 was recorded as $204. The difference of $198 should be treated as a(n)

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 Including Appendix

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

Filters

Exam 6: Bank Accounts and Cash Funds

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

A cash shortage exists when

Which of the following statements is correct concerning a Petty Cash Fund?

At the end of the fiscal period, the Cash Short and Over account has a credit balance. This amount would be

If the Cash Short and Over account has a debit balance at the end of a month, it indicates a net shortage.

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Match the terms below with the correct definitions. -A fraud prevention cash management program offered by banks in an attempt to protect customers and the bank

On a bank reconciliation, a debit memorandum indicating the bank service charge is subtracted from the ledger balance of cash.

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

At the end of the fiscal period, the credit balance in Cash Short and Over is reported as

The person to whom a check is drawn is referred to as the payee.

The amount on the cash register tape indicates the revenue earned, and the cash count will always agree with it.

If cash amounts to $1,585, excluding the Change Fund, and the cash register tape shows cash sales of $1,570, then Cash Short and Over is credited for $15.

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

Match the terms below with the correct definitions. -A record indicating the amount of each petty cash voucher

If the Petty Cash Fund is not replenished on the balance sheet date,

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

The journal entry to record an NSF check would require a

Argee Co. maintains a Cash Short and Over account. During May, Argee Co. had the following selected transactions: Instructions: Record the transactions in general journal form on page 18.

On a bank statement, a deposit of $402 was recorded as $204. The difference of $198 should be treated as a(n)

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 Including Appendix

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

Filters