Question :
85. A person authorized to write checks drawn a checking account : 1227204
85. A person authorized to write checks drawn on a checking account at a bank must sign and have on file with the bank a
A. signature card
B. deposit ticket
C. checkbook
D. bank card
86. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. This item would be included on the bank reconciliation as a(n)
A. addition to the balance per the company’s records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. deduction from the balance per the company’s records
87. A check drawn by a company for $270 in payment of a liability was recorded in the journal as $720. What entry is required in the company’s accounts?
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash
88. A bank reconciliation should be prepared periodically because
A. the company’s records and the bank’s records are in agreement
B. the bank has not recorded all of its transactions
C. any differences between the company’s records and the bank’s records should be determined, and any errors made by either party should be discovered and corrected
D. the bank must make sure that its records are correct
89. The bank reconciliation
A. should be prepared by an employee who records cash transactions
B. is part of the internal control system
C. is for information purposes only
D. is sent to the bank for verification
90. Journal entries based on the bank reconciliation are required in the company’s accounts for
A. outstanding checks
B. deposits in transit
C. bank errors
D. book errors
91. Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is
A. a deduction from the balance per company’s records
B. an addition to the balance per bank statement
C. a deduction from the balance per bank statement
D. an addition to the balance per company’s records
92. Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company’s accounts?
A. debit Miscellaneous Administrative Expense; credit Cash
B. debit Cash; credit Other Income
C. debit Cash; credit Accounts Payable
D. debit Accounts Payable; credit Cash
93. A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. This item would be included in the bank reconciliation as a(n)
A. deduction from the balance per the company’s records
B. addition to the balance per the bank statement
C. deduction from the balance per the bank statement
D. addition to the balance per the company’s records
94. A check drawn by a company in payment of a voucher for $635 was recorded in the journal as $365. What entry is required in the company’s accounts?
A. debit Accounts Payable; credit Cash
B. debit Cash; credit Accounts Receivable
C. debit Cash; credit Accounts Payable
D. debit Accounts Receivable; credit Cash
