Question : 31) There two records of a business’s cash: A) the cash : 1230135

31) There are two records of a business’s cash:

A) the cash account in the general ledger and the petty cash box.

B) the cash account in the general ledger and the journal entries from the bank reconciliation.

C) the bank statement and the cash account in the general ledger.

D) the bank statement and the cash in petty cash.

32) Which of the following is a correct statement regarding the bank reconciliation?

A) The bank reconciliation is part of the general ledger.

B) Journal entries need to be made for all transactions on the bank side to get the accounts up-to-date.

C) Journal entries need to be made for all transactions on the book side to get the accounts up-to-date.

D) The bank reconciliation is part of the journal.

33) A bank reconciliation included an outstanding check of $850 for the payment of salaries. The journal entry to record this reconciling item:

A) should debit Salaries Expense and credit Cash for $850.

B) should debit Cash and credit Salaries Expense for $850.

C) should debit Accounts Payable and credit Cash for $850.

D) is not required.

34) A bank statement included a NSF check from customer Kim Fields for $2,100. The journal entry to record this reconciling item should:

A) debit NSF and credit Cash for $2,100.

B) debit Cash and credit Accounts Receivable for $2,100.

C) debit Accounts Receivable and credit Cash for $2,100.

D) debit Cash and credit NSF for $2,100.

35) If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:

A) debit to Cash.

B) credit to Cash.

C) debit to Note Receivable.

D) debit to Note Payable.

36) With online banking:

A) the cash account can be reconciled at any time.

B) the account history will not shoe deposits.

C) a bank reconciliation is more difficult.

D) the account history will show checks that have cleared the bank.

37) If a bank statement includes an EFT receipt of $200 for interest, the journal entry to record this reconciling item should include a:

A) debit to Cash for $200.

B) debit to Accounts Receivable for $200.

C) credit to Cash for $200.

D) credit to Prepaid Interest for $200.

38) The book side of a bank reconciliation includes:

A) deposits in transit, bank collections and NSF checks.

B) NSF checks, bank collections and interest earned on the checking account.

C) outstanding checks and deposits in transit.

D) outstanding checks, NSF checks and cost of printed checks.

39) Which of the following would NOT be journalized from the bank reconciliation?

A) Outstanding checks

B) Interest income collected by the bank

C) Book errors

D) Charge for printing of checks and deposit slips

40) With online banking:

A) a bank reconciliation cannot be prepared.

B) a bank reconciliation can only be prepared at the end of the month when the bank statement arrives.

C) a bank reconciliation can be prepared at any time.

D) the bank prepares the bank reconciliation for the company.