Question :
101. An analysis that explains any differences between the checking account : 1256889
101. An analysis that explains any differences between the checking account balance according to the depositor’s records and the balance reported on the bank statement is a (n):
A. Internal audit.
B. Bank reconciliation.
C. Bank audit.
D. Trial reconciliation.
E. Analysis of debits and credits.
102. On a bank reconciliation, an unrecorded debit memorandum for printing checks is:
A. Noted as a memorandum only.
B. Added to the book balance of cash.
C. Deducted from the book balance of cash.
D. Added to the bank balance of cash.
E. Deducted from the bank balance of cash.
103. Outstanding checks refer to checks that have been:
A. Written, recorded, sent to payees, and received and paid by the bank.
B. Written and not yet recorded in the company books.
C. Held as blank checks.
D. Written, recorded on the company books, sent to the customer, supplier, or creditor but not yet paid by the bank.
E. Issued by the bank.
104. Which of the following statements best describes how GAAP and IFRS treat cash?
A. Accounting definitions for cash are similar for U.S. GAAP and IFRS.
B. IFRS are more strict about what is considered cash than GAAP .
C. GAAP is more strict about what is considered cash than IFRS.
D. IFRS requires a cash balance of at least 10% of total assets; IFRS requires a cash balance
of at least 5% of total assets.
E. GAAP requires anything other than coins and bills in hand to be classified as cash
equivalents while IFRS classifies coins and bills as cash equivalents.
105. A check that was outstanding on last period’s bank reconciliation was not included with the canceled checks returned by the bank this period. As a result, in preparing this period’s reconciliation, the amount of this check should be:
A. Added to the book balance of cash.
B. Deducted from the book balance of cash.
C. Added to the bank balance of cash.
D. Deducted from the bank balance of cash.
E. Ignored in preparing the period’s bank reconciliation.
106. A deposit in transit on last period’s bank reconciliation is shown as a deposit on the bank statement this period. As a result, in preparing this period’s reconciliation, the amount of this deposit should be:
A. Added to the book balance of cash.
B. Deducted from the book balance of cash.
C. Added to the bank balance of cash.
D. Deducted from the bank balance of cash.
E. Not included as a reconciling item.
107. A company made a bank deposit on September 30 that did not appear on the bank statement dated September 30. In preparing the September 30 bank reconciliation, the company should:
A. Deduct the deposit from the bank statement balance.
B. Send the bank a debit memorandum.
C. Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.
D. Add the deposit to the book balance of cash.
E. Add the deposit to the bank statement balance.
108. A company wrote a check on September 30 that did not appear on the bank statement dated September 30. In preparing the September 30 bank reconciliation, the company should:
A. Deduct the check from the bank statement balance.
B. Send the bank a credit memorandum.
C. Deduct the check from the September 30 book balance and add it to the October 1 book balance.
D. Add the check to the book balance of cash.
E. Add the check to the bank statement balance.
109. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4239 for November’s rent was correctly written and drawn for $3,790 but was erroneously entered in the accounting records as $7,390. When reconciling the November bank statement, the company should:
A. Deduct $3,600 from the book balance of cash.
B. Add $3,700 to the bank statement balance.
C. Add $7,390 to the book balance of cash.
D. Deduct $3,600 from the bank statement balance.
E. Add 3,600 to the book balance of cash.
110. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4239 for November’s rent was correctly written and drawn for $7,390 but was erroneously entered in the accounting records as $3,790. When reconciling the November bank statement, the company should:
A. Deduct $3,600 from the book balance of cash.
B. Add $3,600 to the bank statement balance.
C. Add $7,390 to the book balance of cash.
D. Deduct $3,600 from the bank statement balance.
E. Add $3,600 to the book balance of cash.
