Question 1

Which data are generally not included on a check?

Accepted Answer

A) Date of the check 
B) Signature of the party writing the check 
C) Address of the payee 
D) Amount the bank is to pay the payee 
E) Name of the bank on which the check was drawn 
A) Date of the check 
B) Signature of the party writing the check 
C) Address of the payee 
D) Amount the bank is to pay the payee 
E) Name of the bank on which the check was drawn

Question 2

Match the terms below with the correct definitions.
  
-Number used by the Federal Reserve Bank to identify the financial institution

Accepted Answer

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

Question 3

B. Hallonon shows a balance in her Cash account of $360, but the bank statement just received shows a balance of $460. The difference of $100 may be caused by

Accepted Answer

A) an NSF check for $100. 
B) an outstanding check for $100. 
C) a debit memo for $100. 
D) a deposit in transit of $100. 
E) interest income of $50. 
A) an NSF check for $100. 
B) an outstanding check for $100. 
C) a debit memo for $100. 
D) a deposit in transit of $100. 
E) interest income of $50.

Question 4

Explain why internal control is an important aspect of an accounting system, providing at least two specific examples that would be in the policies and procedures of internal control.

Accepted Answer

A very important aspect of any financial

Question 5

Match the terms below with the correct definitions.
  
-Cash fund used for making small, immediate cash payments

Accepted Answer

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

Question 6

Which of the following would be subtracted from the ledger balance of cash when preparing a bank reconciliation?

Accepted Answer

A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges. 
A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges.

Question 7

Explain the difference between debit and credit memos on a bank statement and how they affect the company books. Give examples of each.

Accepted Answer

Debit memos are deductions by the bank t

Question 8

Place an X in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly.

Accepted Answer

The answer of Place an X in the column that...

Question 9

How does a petty cash payments record differ from a general journal?

Accepted Answer

A petty cash payments record is not a bo

Question 10

Petty cash payments do not need to be recorded separately in the general journal.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following represent good internal control procedures concerning cash receipts?

Accepted Answer

A) Cash should be deposited only at the end of the month. 
B) Cash receipts should be posted to the Accounts Receivable account at the end of the month. 
C) Designate a specific employee to open mail, handle cash, and record the cash. 
D) Endorse checks immediately upon receipt with the stamp, "For Deposit Only". 
A) Cash should be deposited only at the end of the month. 
B) Cash receipts should be posted to the Accounts Receivable account at the end of the month. 
C) Designate a specific employee to open mail, handle cash, and record the cash. 
D) Endorse checks immediately upon receipt with the stamp, "For Deposit Only".

Question 12

Which of the following would be added to the ledger balance of cash when preparing a bank reconciliation?

Accepted Answer

A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges. 
A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges.

Question 13

The __________________ is used by a business to make change for customers who pay cash for goods or services.

Accepted Answer

A) petty cash fund 
B) cash fund 
C) change fund 
D) none of the answers listed 
A) petty cash fund 
B) cash fund 
C) change fund 
D) none of the answers listed

Question 14

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Accepted Answer

A) debit to Cash. 
B) debit to Debit Memo. 
C) debit to Miscellaneous Expense. 
D) none of the answers listed. 
A) debit to Cash. 
B) debit to Debit Memo. 
C) debit to Miscellaneous Expense. 
D) none of the answers listed.

Question 15

Which of the following would be added to the bank statement balance when preparing a bank reconciliation?

Accepted Answer

A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges. 
A) deposit in transits. 
B) outstanding checks. 
C) notes collected by the bank. 
D) bank service charges.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Broomfield Services cash count at the end of the day totals $1,230 and the cash register tape shows $1,120. The amount of the change fund is $100. What is the amount of the cash shortage or overage?

Accepted Answer

A) $110 cash overage 
B) $10 cash shortage 
C) $210 cash shortage 
D) none of the answers listed. 
A) $110 cash overage 
B) $10 cash shortage 
C) $210 cash shortage 
D) none of the answers listed.

Question 18

The following bank reconciliation contains several errors.
   Instructions:
Prepare a corrected bank reconciliation.

Accepted Answer

The answer of The following bank reconciliation contains several errors.
...

Question 19

A bank will accept a check made out to a business without an endorsement.

Accepted Answer

A) True 
 B)False

Question 20

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.

Which data are generally not included on a check?

Match the terms below with the correct definitions. -Number used by the Federal Reserve Bank to identify the financial institution

B. Hallonon shows a balance in her Cash account of $360, but the bank statement just received shows a balance of $460. The difference of $100 may be caused by

Explain why internal control is an important aspect of an accounting system, providing at least two specific examples that would be in the policies and procedures of internal control.

Match the terms below with the correct definitions. -Cash fund used for making small, immediate cash payments

Which of the following would be subtracted from the ledger balance of cash when preparing a bank reconciliation?

Explain the difference between debit and credit memos on a bank statement and how they affect the company books. Give examples of each.

Place an X in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly.

How does a petty cash payments record differ from a general journal?

Petty cash payments do not need to be recorded separately in the general journal.

Which of the following represent good internal control procedures concerning cash receipts?

Which of the following would be added to the ledger balance of cash when preparing a bank reconciliation?

The __________________ is used by a business to make change for customers who pay cash for goods or services.

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Which of the following would be added to the bank statement balance when preparing a bank reconciliation?

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

Broomfield Services cash count at the end of the day totals $1,230 and the cash register tape shows $1,120. The amount of the change fund is $100. What is the amount of the cash shortage or overage?

The following bank reconciliation contains several errors. Instructions: Prepare a corrected bank reconciliation.

A bank will accept a check made out to a business without an endorsement.

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

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

Which data are generally not included on a check?

Match the terms below with the correct definitions. -Number used by the Federal Reserve Bank to identify the financial institution

B. Hallonon shows a balance in her Cash account of $360, but the bank statement just received shows a balance of $460. The difference of $100 may be caused by

Explain why internal control is an important aspect of an accounting system, providing at least two specific examples that would be in the policies and procedures of internal control.

Match the terms below with the correct definitions. -Cash fund used for making small, immediate cash payments

Which of the following would be subtracted from the ledger balance of cash when preparing a bank reconciliation?

Explain the difference between debit and credit memos on a bank statement and how they affect the company books. Give examples of each.

Place an X in the column that indicates the location of each item that would be found on a bank reconciliation. Assume that the checks written by the company are written correctly.

How does a petty cash payments record differ from a general journal?

Petty cash payments do not need to be recorded separately in the general journal.

Which of the following represent good internal control procedures concerning cash receipts?

Which of the following would be added to the ledger balance of cash when preparing a bank reconciliation?

The __________________ is used by a business to make change for customers who pay cash for goods or services.

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Which of the following would be added to the bank statement balance when preparing a bank reconciliation?

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

Broomfield Services cash count at the end of the day totals $1,230 and the cash register tape shows $1,120. The amount of the change fund is $100. What is the amount of the cash shortage or overage?

The following bank reconciliation contains several errors. Instructions: Prepare a corrected bank reconciliation.

A bank will accept a check made out to a business without an endorsement.

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

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