Question :
81.When preparing a bank reconciliation, deposits in transit will:
A.Increase the : 1237638
81.When preparing a bank reconciliation, deposits in transit will:
A.Increase the balance per depositor’s records.
B.Decrease the balance per depositor’s records.
C.Increase the balance per the bank statement.
D.Decrease the balance per the bank statement.
82.An NSF check returned by the bank should be entered in the depositor’s accounting records by a debit to:
A.Accounts Receivable.
B.An expense account.
C.Cash.
D.Cash Over and Short.
83.In preparing a bank reconciliation, a service charge shown on the bank statement should be:
A.Added to the balance per the bank statement.
B.Deducted from the balance per the bank statement.
C.Added to the balance per the depositor’s records.
D.Deducted from the balance per the depositor’s records.
84.Enclosed with the bank statement received by Sydney Company at October 31 was an NSF check for $300. No entry has yet been made by the company to reflect the bank’s action in charging back the NSF check. During preparation of the bank reconciliation, the NSF check should be:
A.Deducted from the balance per the depositor’s records.
B.Deducted from the balance per the bank statement.
C.Added to the balance per the bank statement.
D.Added to the balance per the depositor’s records.
85.When a bank reconciliation has been satisfactorily completed, the only related entries to be made in the depositor’s records are:
A.To correct errors made by the bank in recording the dollar amounts of cash transactions during the period.
B.To reconcile items that explain the difference between the balance per the books and the balance per the bank statement.
C.To record outstanding checks and bank service charges.
D.To record items that explain the difference between the balance per the accounting records and the adjusted cash balance.
86.Which of the following transactions will appear in the bank statement but generally not have been recorded by the depositor?
A.Outstanding checks.
B.Service charges.
C.Deposits in transit.
D.Both outstanding checks and deposits in transit.
87.Which of the following items would cause cash per the bank statement to be smaller than the balance of cash shown in the accounting records?
A.Outstanding checks.
B.Interest earned on the average balance of the checking account.
C.Check no. 824, in the amount of $620.30, is recorded by the bank as $602.30.
D.Deposits in transit.
88.Which of the following items would cause cash per the bank statement to be larger than the balance of cash shown in the accounting records?
A.Bank service charges.
B.Deposits in transit.
C.Outstanding checks.
D.NSF check from one of the depositor’s customers.
89.In preparing the bank reconciliation, certain transactions recorded by the depositor may not have been recorded by the bank. Which of the following is an example of this type of transaction?
A.Service charges.
B.Outstanding checks.
C.Credit for interest earned.
D.Charges for NSF checks.
90.When reading a bank statement, which reference indicates an increase in the cash balance?
A.Debit Memorandum.
B.Credit Memorandum.
C.NSF Check.
D.Service Charge.
