Question :
111. A company had $43 missing from petty cash that was : 1257947
111. A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure is to:
A. Debit Cash Over and Short for $43.
B. Credit Cash Over and Short for $43.
C. Debit Petty Cash for $43.
D. Credit Petty Cash for $43.
E. Credit Cash for $43.
112. 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.
113. Childers Company has an established petty cash fund in the amount of $400. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:
December 4Freight charge for merchandise purchased$ 62
December 7Delivery charge for shipping to customer$ 46
December 12 Purchase of office supplies$ 30
December 18 Donation to charitable organization$ 51
If, in addition to these receipts, the petty cash fund contains $201 of cash, the journal entry to reimburse the fund on December 31 will include:
A. A debit to Transportation-In of $73.
B. A debit to Petty Cash of $189.
C. A credit to Office Supplies of $66.
D. A credit to Cash Over and Short of $10.
E. A credit to Cash of $199.
114. An analysis that explains 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.
115. 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 payee, but not yet paid by the bank.
E. Issued by the bank.
116. On a bank reconciliation, the amount of an unrecorded bank service charge 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. Noted in memorandum form only.
117. If a check that was outstanding on last period’s bank reconciliation was not among the cancelled checks returned by the bank this period, 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.
118. If 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.
119. If a check correctly written and paid by the bank for $749 is incorrectly recorded in the company’s books for $794, how should this error be treated on the bank reconciliation?
A. Subtract $45 from the bank’s balance.
B. Add $45 to the bank’s balance.
C. Subtract $45 from the book balance.
D. Add $45 to the book balance.
E. Subtract $45 from the bank’s balance and add $45 to the book’s balance.
120. If a check correctly written and paid by the bank for $272 is incorrectly recorded in the company’s books for $227, how should this error be treated on the bank reconciliation?
A. Subtract $45 from the bank’s balance.
B. Add $45 to the bank’s balance.
C. Subtract $45 from the book balance.
D. Add $45 to the book balance.
E. Subtract $45 from the bank’s balance and add $45 to the book’s balance.
