Question : 11) If the balance the bank statement does not equal : 1212703

11) If the balance on the bank statement does not equal the balance in the company’s cash account:

A) the bookkeeper made a mistake.

B) the bank made a mistake.

C) both the bank and the bookkeeper made a mistake.

D) it is perfectly normal for the two balances to be different.

 

12) A bank reconciliation:

A) should be prepared by an employee who handles cash transactions.

B) is a formal financial statement.

C) is part of a sound internal control system.

D) is done only at the end of the fiscal year.

13) All of the following are items that cause a difference between the bank balance and the book balance except:

A) cancelled cheques.

B) deposits in transit.

C) outstanding cheques.

D) NSF cheques.

 

14) A cheque cashed by the payee for $2,200 was recorded in the makers accounting records for $220. On a bank reconciliation:

A) $1,980 will be added to the book balance.

B) $1,980 will be deducted from the book balance.

C) $1,980 will be added to the bank balance.

D) $1,980 will be deducted from the bank balance.

 

15) In a bank reconciliation, a $400 NSF cheque is:

A) deducted from the book balance.

B) added to the book balance.

C) deducted from the bank balance.

D) added to the bank balance.

16) The accountant for World Company discovered Central Bank had made an error on World’s August 31 bank statement. The bank balance read $8,728, while the book balance showed $6,998. The accountant found that an August 23 cheque for $1,250 did not appear on the bank statement (thus representing an outstanding cheque). If this cheque is the only reconciling item, how much is the amount of the bank error?

A) $2,980

B) $1,250

C) $480

D) $1,730

 

17) The following data are available for Remas Designs for October:

 

Book balance, October 31

$5,600

Outstanding cheques

584

Deposits in transit

2,500

Service charges

75

Interest revenue

25

 

What is the adjusted book balance on October 31 for Remas Designs based on the above data?

A) $5,500

B) $5,550

C) $7,466

D) $4,966

 

18) The Calder Company received a bank statement showing a balance of $60,300. Reconciling items included outstanding cheques of $1,450 and a deposit in transit of $8,500. What is the company’s adjusted bank balance?

A) $60,300

B) $58,850

C) $68,800

D) $67,350

19) The following data are available for Dragon Boat Company for March:

 

Book balance, March 31

$3,620

Service charges

50

Interest revenue

35

Note collected by bank

1,500

Cheque returned marked NSF

700

 

What is Dragon’s adjusted book balance on March 31 from the above data?

A) $4,405

B) $4,200

C) $3,150

D) $3,270

 

20) The following data are available for Matheson Avenue Retailers for April:

 

Book balance, April 30

$1,400

Service charges

20

Interest revenue

800

Note collected by bank

1,000

Cheque returned marked NSF

300

 

What is Matheson’s adjusted book balance on April 30 from the above data?

A) $1,580

B) $2,880

C) $2,080

D) $2,950

 

 

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