Question :
46.A check issued for $1,980 to pay a vendor account : 1169434
46.A check issued for $1,980 to pay a vendor on account was recorded in the firm’s records as $1,890; the canceled check was properly listed on the bank statement at $1,980. To arrive at an accurate balance on a bank reconciliation statement, the error should be
A. added to the bank statement balance.
B. added to the book balance.
C. deducted from the bank statement balance.
D. deducted from the book balance.
47.To arrive at an accurate balance on a bank reconciliation statement, deposits in transit should be
A. added to the bank statement balance.
B. added to the book balance.
C. deducted from the bank statement balance.
D. deducted from the book balance.
48.A firm appropriately wrote a check for $78 but entered the amount as payment of $87 in its records. On a bank reconciliation statement this error would be shown as
A. a deduction of $9 from the book balance.
B. an addition of $9 to the book balance.
C. a deduction of $9 from the bank statement balance.
D. an addition of $9 to the bank statement balance.
49.Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?
A. bank service charges
B. NSF checks
C. deposits in transit
D. a charge for printing new checks
50.Included with its bank statement a firm may receive a credit memorandum, which could indicate
A. a bank service charge deducted from the firm’s account balance.
B. the bank’s return of a dishonored (NSF) check that was issued by a credit customer of the firm.
C. a fee for printing new business checks.
D. an addition to the firm’s account balance because the bank collected the amount due on a promissory note from a customer of the firm.
51.If a check written by a firm is not canceled by the bank and returned with the month’s bank statement, the firm should
A. consider this check as outstanding when preparing the bank reconciliation.
B. immediately notify the bank requesting that it correct its records.
C. adjust the balance in the firm’s checkbook to reflect the data that appears in the bank’s records.
D. make no adjustment when preparing the bank reconciliation.
52.After a bank reconciliation statement is completed, a firm may have to make an entry in its accounting records for
A. outstanding checks.
B. deposits in transit.
C. the bank statement balance.
D. NSF checks.
53.The entry in a firm’s accounting records for a credit customer’s check that was returned by the bank marked “NSF” would include
A. a debit to Miscellaneous Expense and a credit to Cash.
B. a debit to Accounts Receivable and a credit to Accounts Payable.
C. a debit to Accounts Receivable and a credit to Cash.
D. a debit to Cash and a credit to Accounts Receivable.
54.Merchandise costing $5,600 with terms of 1/10, n/30, with transportation costs of $320 included on the invoice (not included in the $5,600) is sold on account. If the bill is paid within ten days, the amount of the purchase discount is
A. $59.20.
B. $56.00.
C. $3.20.
D. $52.80.
55.The entry to record the issuance of a check in settlement of an interest-bearing promissory note of $4,000 and the interest owed on the note of $100, would be to:
A. debit Interest Expense $100, debit Notes Payable $4,000 and credit Cash $4,100.
B. debit Cash $4,100, credit Notes Payable $4,000 and credit Cash $100.
C. debit Notes Payable $4,100 and credit Cash $4,100.
D. debit Accounts Payable $4,000, debit Interest Expense $100 and credit Cash $4,100.
