Question :
115. Thompson Company developed the following reconciling information in preparing its : 1227207
115. Thompson Company developed the following reconciling information in preparing its October bank reconciliation:
Cash balance per bank, 10/31
$17,000
Note receivable collected by bank
4,800
Outstanding checks
6,500
Deposits-in-transit
3,000
Bank service charge
50
NSF check
2,300
Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.
A. $11,050
B. $19,450
C. $15,950
D. $11,150
116. During a bank reconciliation process,
A. Outstanding checks and deposits in transit are added to the bank statement balance.
B. Outstanding checks are subtracted and deposits in transit are added to the bank statement balance.
C. Outstanding checks and deposits in transit are subtracted from the bank statement balance.
D. Outstanding checks are added and deposits in transit are subtracted from the bank statement balance.
117. In the normal operation of business you receive a check from a customer and deposit it into your checking account. With your bank statement you are advised that this check for $425 is “NSF”. The bank also informs you that due to the amount of activity on your business account the monthly service charge is $45. During a bank reconciliation:
A. subtract both values from balance according to bank.
B. add both values from balance according to books.
C. add both values from balance according to bank.
D. subtract both values from balance according to books.
118. A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a
A. credit to Petty Cash for $82.
B. debit to Cash for $110.
C. debit to Cash Over and Short for $12.
D. credit to Cash for $110
119. A $135 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a
A. credit to Petty Cash for $93.
B. debit to Cash for $93.
C. credit to Cash Over and Short for $2.
D. credit to Cash for $49.
120. Entries are made to the Petty Cash account when
A. making payments out of the fund.
B. recording shortages in the fund.
C. replenishing the petty cash fund.
D. establishing the fund.
121. The type of account and normal balance of Petty Cash is a(n)
A. revenue, credit
B. asset, debit
C. liability, credit
D. expense, debit
122. The debit recorded in the journal to reimburse the petty cash fund is to
A. Petty Cash
B. Accounts Receivable
C. Cash
D. various accounts for which the petty cash was disbursed
123. A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a
A. credit to Petty Cash for $96.50.
B. credit to Cash for $89.
C. debit to Cash Short and Over for $3.50.
D. credit to Cash Short and Over for $3.50.
124. A $140 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a credit to
A. Cash for $120.
B. Cash Over and Short for $2.
C. Petty Cash for $122.
D. Cash for $122.
125. Cash equivalents include
A. checks
B. coins and currency
C. money market accounts and commercial paper
D. stocks and short-term bonds
126. Cash equivalents
A. are illegal in some states
B. will be converted to cash within two years
C. will be converted to cash within 90 days
D. will be converted to cash within 120 days
127. A minimum cash balance required by a bank is called
A. cash in bank
B. cash equivalent
C. compensating balance
D. EFT
128. Which of the following would not be included with the Cash and Equivalents on the Balance Sheet?
A. Commercial Paper
B. Short-Term Receivables
C. Certificates of Deposit
D. Money Market Mutual Funds
129. During 2010, Tempo Inc. has monthly cash expenses of $120,000. On December 31, 2010, its cash balance is $1,860,000. The ratio of cash to monthly cash expenses is
A. 6.5
B. 15.5
C. 77.4
D. 12.0
