Question :
111. Outstanding checks refer to checks that have been:
A. Written, recorded, sent : 1225913
111. 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 have not yet been paid by the bank.
E. Issued by the bank.
112. 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.
113. A check that was outstanding on last period’s bank reconciliation was not among the cancelled 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.
114. A company made a bank deposit on September 30 that did not appear on the bank statement dated as of 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.
115. If a check correctly written and paid by the bank for $794 is incorrectly recorded in the company’s books for $749, 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.
116. During the month of September, Norris Industries issued a check in the amount of $845 to a supplier on account. The check cleared the bank during September. The disbursement was recorded incorrectly as $854. The journal entry to correct this mistake when discovered will include:
A. A debit to Accounts Payable for $854.
B. A credit to Cash for $854.
C. A credit to Cash for $9.
D. A credit to Accounts Payable for $9.
E. A debit to Cash for $49.
117. In the process of reconciling Marks Enterprises’ bank statement for September, Mr. Marks compiles the following information:
The adjusted cash balance per the books on September 30 is:
A. $6,900
B. $8,160
C. $4,600
D. $6,520
E. $5,840
118. Which of the following events would cause a bank to debit a depositor’s account?
A. The depositor authorizes the bank to charge the depositor’s account $50 for new checks.
B. The bank collects a note receivable and related interest on the depositor’s behalf.
C. The depositor determines there are outstanding checks drawn on the account at month-end.
D. The depositor determines there are deposits in transit on the account at month-end.
E. The bank determines it incorrectly charged the depositor’s account twice for the monthly service charge in a previous month.
119. A seller of goods or services, usually a manufacturer or wholesaler, is known as a:
A. Vendor.
B. Payee.
C. Vendee.
D. Creditor.
E. Debtor.
120. The internal document prepared by a department manager that informs the purchasing department of its needs that lists the merchandise needed and requests that it be purchased is the
A. Purchase requisition.
B. Purchase order.
C. Invoice.
D. Receiving report.
E. Invoice approval.
