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Question 1 of 20
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5.0/ 5.0 Points
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How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
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[removed]
A. They would be added to the balance of the bank statement.
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B. They would be subtracted from the balance of the bank statement.
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C. They would be added to the balance per books.
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D. They would be ignored.
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Question 2 of 20
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0.0/ 5.0 Points
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A bank statement includes bank charges. On the bank reconciliation, the item is a/an
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A. addition to the balance per company books.
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B. addition to the balance per bank statement.
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C. deduction from the balance per bank statement.
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D. deduction from the balance per company books.
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Question 3 of 20
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0.0/ 5.0 Points
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Using the following information, calculate the adjusted cash balance at the end of April.
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Bank statement ending cash balance
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$2,000
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General ledger cash balance ending
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3,250
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Bank monthly service charge
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45
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Deposits in transit
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2,500
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Outstanding checks
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1,500
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NSF check returned with bank statement
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205
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A. $3,000
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B. $4,250
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C. $4,000
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D. $5,500
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Question 4 of 20
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5.0/ 5.0 Points
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Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should
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A. increase its cash account on the company’s books.
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B. decrease its cash account on the company’s books.
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C. increase the ending cash balance on the bank statement.
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D. decrease the ending cash balance on the bank statement.
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Question 5 of 20
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5.0/ 5.0 Points
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Checks that have been processed by the bank and are no longer negotiable are
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A. outstanding checks.
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B. canceled checks.
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C. checks in process.
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D. blank checks.
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Question 6 of 20
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0.0/ 5.0 Points
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The first two numbers of the ABA code listed on the check represent the
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A. Federal Reserve District.
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B. check number.
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C. routing number.
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D. account number.
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Question 7 of 20
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0.0/ 5.0 Points
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Using the following information, determine the adjusted cash balance per bank for Santa’s Packaging on November 30.
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Cash balance on the bank statement
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$2,350
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Customer’s check returned—NSF
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500
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Customer’s note collected by the bank
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600
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Deposits in transit, November 30
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1,400
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Outstanding checks, November 30
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2,650
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[removed]
A. $1,250
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[removed]
B. $1,100
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C. $1,550
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D. $1,350
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Question 8 of 20
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0.0/ 5.0 Points
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On a bank reconciliation, deposits added to the bank side are called
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A. deposits in transit.
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[removed]
B. late deposits.
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C. deposits on hold.
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D. outstanding deposits.
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Question 9 of 20
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5.0/ 5.0 Points
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Internal control over a company’s assets should include which of the following?
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A. Responsibilities and duties of employees will be divided.
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B. All cash receipts will be deposited into the bank the same day they arrive.
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C. All cash payments will be made by check (except petty cash).
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D. All of the above
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Question 10 of 20
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0.0/ 5.0 Points
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If the bank charged another company’s check against Shoe Depot’s account, this would be included on the bank reconciliation as a/an
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A. addition to the balance per books.
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[removed]
B. subtraction from the balance per books.
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[removed]
C. addition to the balance per bank.
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D. subtraction from the balance per bank.
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Question 11 of 20
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0.0/ 5.0 Points
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A blank endorsement on a check
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A. can be further endorsed by someone else.
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[removed]
B. cannot be further endorsed by someone else.
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C. is the safest type of endorsement.
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D. permits only the original endorser to get the money.
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Question 12 of 20
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5.0/ 5.0 Points
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Advantages of online banking include
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A. convenience.
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[removed]
B. transaction speed.
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C. effectiveness.
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D. All of the above
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Question 13 of 20
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5.0/ 5.0 Points
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If the written amount on the check doesn’t match the amount expressed in figures, the bank may
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A. pay the amount written in words.
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B. return the check unpaid.
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C. contact the drawer to see what was meant.
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D. All of the above
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Question 14 of 20
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5.0/ 5.0 Points
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A restrictive endorsement on a check
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A. can be further endorsed by someone else.
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[removed]
B. is the safest endorsement for businesses.
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[removed]
C. permits the bank to use its best judgment.
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D. None of the above
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Question 15 of 20
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0.0/ 5.0 Points
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From the bank reconciliation, no entry was recorded for deposits in transit. This would cause
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A. assets to be overstated.
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B. assets to be understated.
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C. no impact since deposits in transit are already included in the balance per books.
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D. no impact since deposits aren’t recorded on the books.
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Question 16 of 20
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0.0/ 5.0 Points
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Company policy for internal control should include all of the following except for which one?
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A. Employees will be rotated.
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B. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.
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C. The owner (or responsible employee) signs all checks after receiving authorization to pay from the departments concerned.
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D. At time of payment, all supporting invoices or documents will be stamped “paid.”
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Question 17 of 20
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5.0/ 5.0 Points
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The bank statement shows
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A. the beginning bank balance of the cash at the start of the month.
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B. the checks the bank has paid and any deposits received.
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C. any other charges or additions to the bank balance.
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D. All of the above
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Question 18 of 20
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0.0/ 5.0 Points
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The journal entry to reverse the entry of a customer’s nonsufficient-funds check would include a
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A. debit to Cash.
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B. credit to Cash.
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C. debit to Accounts Payable.
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D. credit to Accounts Receivable.
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Question 19 of 20
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0.0/ 5.0 Points
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A full endorsement on a check
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A. is the same as a blank endorsement.
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[removed]
B. can be endorsed only by the person or company named in the original endorsement.
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[removed]
C. is the safest endorsement for businesses.
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D. None of the above
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Question 20 of 20
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0.0/ 5.0 Points
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Outstanding checks
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A. have been subtracted on the bank records but not the checkbook records.
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[removed]
B. haven’t been presented to the bank for payment and haven’t been subtracted from the checkbook.
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[removed]
C. haven’t been presented to the bank for payment but have been subtracted in the checkbook.
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D. have been returned to the business for nonpayment.
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