Question 1

In preparing a bank reconciliation, a deposit in transit is added to the ledger balance of cash.

Accepted Answer

A) True 
 B)False

Question 2

The endorsement on the back of a check

Accepted Answer

A) transfers title to the money. 
B) authorizes payment of the check. 
C) both a and 
D) none of the above. 
A) transfers title to the money. 
B) authorizes payment of the check. 
C) both a and 
D) none of the above.

Question 3

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 4

The amount of the Petty Cash Fund should be included on the bank reconciliation as

Accepted Answer

A) an addition to the book balance of cash. 
B) an addition to the bank statement balance. 
C) a deduction from the bank statement balance. 
D) a part of a late deposit. 
E) The Petty Cash Fund is not included on the bank reconciliation. 
A) an addition to the book balance of cash. 
B) an addition to the bank statement balance. 
C) a deduction from the bank statement balance. 
D) a part of a late deposit. 
E) The Petty Cash Fund is not included on the bank reconciliation.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The information needed to record journal entries based on the bank reconciliation is found in the section of the bank reconciliation that begins with the ledger balance of cash.

Accepted Answer

A) True 
 B)False

Question 7

A business should make all payments by check, including payment from the Petty Cash Fund.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

If the cash register tape reads $220, the Change Fund is $100, and the cash count is $318, there is a $2 overage to Cash.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are items that cause a difference between the bank balance and the book balance except

Accepted Answer

A) NSF checks. 
B) deposits in transit. 
C) outstanding checks. 
D) canceled checks. 
E) bank service charges. 
A) NSF checks. 
B) deposits in transit. 
C) outstanding checks. 
D) canceled checks. 
E) bank service charges.

Question 11

Manx Company's bank statement shows that a note receivable of $15,000 and interest of $1,050 were collected by the bank on behalf of the depositor. The entry required on the company's books is

Accepted Answer

A) debit Cash; credit Notes Receivable. 
B) debit Cash; debit Interest Expense; credit Notes Receivable. 
C) debit Cash; debit Interest Income; credit Notes Receivable. 
D) debit Cash; credit Interest Income; credit Notes Receivable. 
E) debit Notes Receivable; credit Cash; credit Interest Income. 
A) debit Cash; credit Notes Receivable. 
B) debit Cash; debit Interest Expense; credit Notes Receivable. 
C) debit Cash; debit Interest Income; credit Notes Receivable. 
D) debit Cash; credit Interest Income; credit Notes Receivable. 
E) debit Notes Receivable; credit Cash; credit Interest Income.

Question 12

Which of the following would be added to the bank statement balance of cash?

Accepted Answer

A) Note collected by bank 
B) Service charges 
C) Deposits in transit 
D) Outstanding checks 
E) NSF checks 
A) Note collected by bank 
B) Service charges 
C) Deposits in transit 
D) Outstanding checks 
E) NSF checks

Question 13

When a Petty Cash Fund has been established, which of the following relationships should be true at all times?

Accepted Answer

A) Petty Cash Fund = Cash in the petty cash box - Petty cash vouchers 
B) Petty Cash Fund = Petty cash vouchers 
C) Petty Cash Fund = Cash in the petty cash box + Petty cash vouchers 
D) Petty Cash Fund = Cash in the petty cash box 
E) Petty Cash Fund = Cash in the petty cash box - $100 
A) Petty Cash Fund = Cash in the petty cash box - Petty cash vouchers 
B) Petty Cash Fund = Petty cash vouchers 
C) Petty Cash Fund = Cash in the petty cash box + Petty cash vouchers 
D) Petty Cash Fund = Cash in the petty cash box 
E) Petty Cash Fund = Cash in the petty cash box - $100

Question 14

Match the terms below with the correct definitions.
  
-Checks issued by the writer that have been paid by the bank

Accepted Answer

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

Question 15

Pueblo Co. establishes a Change Fund of $100. The journal entry recorded would include a

Accepted Answer

A) debit to Change Fund. 
B) credit to Income from Services. 
C) debit to Cash. 
D) none of the answers listed. 
A) debit to Change Fund. 
B) credit to Income from Services. 
C) debit to Cash. 
D) none of the answers listed.

Question 16

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

Accepted Answer

A) credit to Cash for $269. 
B) debit to Petty Cash Fund for $269. 
C) debit to various expenses for $31. 
D) credit to Petty Cash Fund for $269. 
E) credit to various expenses for $269. 
A) credit to Cash for $269. 
B) debit to Petty Cash Fund for $269. 
C) debit to various expenses for $31. 
D) credit to Petty Cash Fund for $269. 
E) credit to various expenses for $269.

Question 17

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 18

The ledger balance of cash may differ from the bank statement balance because of

Accepted Answer

A) NSF checks. 
B) outstanding checks. 
C) service charges. 
D) deposits in transit. 
E) all of these. 
A) NSF checks. 
B) outstanding checks. 
C) service charges. 
D) deposits in transit. 
E) all of these.

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

In preparing a bank reconciliation, a deposit in transit is added to the ledger balance of cash.

The endorsement on the back of a check

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

The amount of the Petty Cash Fund should be included on the bank reconciliation as

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

The information needed to record journal entries based on the bank reconciliation is found in the section of the bank reconciliation that begins with the ledger balance of cash.

A business should make all payments by check, including payment from the Petty Cash Fund.

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

If the cash register tape reads $220, the Change Fund is $100, and the cash count is $318, there is a $2 overage to Cash.

All of the following are items that cause a difference between the bank balance and the book balance except

Manx Company's bank statement shows that a note receivable of $15,000 and interest of $1,050 were collected by the bank on behalf of the depositor. The entry required on the company's books is

Which of the following would be added to the bank statement balance of cash?

When a Petty Cash Fund has been established, which of the following relationships should be true at all times?

Match the terms below with the correct definitions. -Checks issued by the writer that have been paid by the bank

Pueblo Co. establishes a Change Fund of $100. The journal entry recorded would include a

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

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

The ledger balance of cash may differ from the bank statement balance because of

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

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

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

In preparing a bank reconciliation, a deposit in transit is added to the ledger balance of cash.

The endorsement on the back of a check

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

The amount of the Petty Cash Fund should be included on the bank reconciliation as

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

The information needed to record journal entries based on the bank reconciliation is found in the section of the bank reconciliation that begins with the ledger balance of cash.

A business should make all payments by check, including payment from the Petty Cash Fund.

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

If the cash register tape reads $220, the Change Fund is $100, and the cash count is $318, there is a $2 overage to Cash.

All of the following are items that cause a difference between the bank balance and the book balance except

Manx Company's bank statement shows that a note receivable of $15,000 and interest of $1,050 were collected by the bank on behalf of the depositor. The entry required on the company's books is

Which of the following would be added to the bank statement balance of cash?

When a Petty Cash Fund has been established, which of the following relationships should be true at all times?

Match the terms below with the correct definitions. -Checks issued by the writer that have been paid by the bank

Pueblo Co. establishes a Change Fund of $100. The journal entry recorded would include a

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

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

The ledger balance of cash may differ from the bank statement balance because of

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

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

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