Question :
81. A bank statement A. a credit reference letter written by the : 1234116
81. A bank statement
A. is a credit reference letter written by the depositor’s bank.
B. lets a depositor know the financial position of the bank as of a certain date.
C. is a bill from the bank for services rendered.
D. shows the activity that increased or decreased the depositor’s account balance.
82. Which one of the following would not cause a bank to debit a depositor’s account?
A. Bank service charge
B. Collection of a note receivable
C. Checks marked NSF
D. Wiring of funds to other locations
83. There are three parties to a check. The drawer is
A. a written document signed by the depositor
B. is the one who signs the check ordering payment by the bank
C. the bank on which the check is drawn
D. the party to whom payment is to be made
84. A debit or credit memorandum describing entries in the depositor’s bank account may be enclosed with the bank statement. An example of a credit memorandum is
A. deposited checks returned for insufficient funds
B. a promissory note left for collection
C. a service charge
D. notification that a customer’s check for $375 was recorded by the depositor as $735 on the deposit ticket
85. Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was
A. deducted from the balance per depositor’s records
B. deducted from the balance per bank statement
C. added to the balance per bank statement
D. added to the balance per depositor’s records
86. A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a
A. signature card
B. deposit ticket
C. checkbook
D. bank card
87. A check drawn by a depositor for $180 in payment of a liability was recorded in the journal as $810. This item would be included on the bank reconciliation as a(n)
A. addition to the balance per the depositor’s records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. deduction from the balance per the depositor’s records
88. A check drawn by a depositor for $180 in payment of a liability was recorded in the journal as $810. What entry is required in the depositor’s accounts?
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash
89. A bank reconciliation should be prepared periodically because
A. the depositor’s records and the bank’s records are in agreement
B. the bank has not recorded all of its transactions
C. any differences between the depositor’s records and the bank’s records should be determined, and any errors made by either party should be discovered and corrected
D. the bank must make sure that its records are correct
90. The bank reconciliation
A. should be prepared by an employee who records cash transactions
B. is part of the internal control system
C. is for information purposes only
D. is sent to the bank for verification
