Question :
41.After preparing a bank reconciliation, the collection of a note : 1236151
41.After preparing a bank reconciliation, the collection of a note by the bank on a company’s behalf would be recorded with:
A.A credit to Notes Receivable.
B.A credit to Cash.
C.A debit to Notes Receivable.
D.A credit to Accounts Receivable.
42.After preparing a bank reconciliation, the service fee charged by the bank would be recorded with:
A.A credit to Service Fees Expense.
B.A debit to Cash.
C.A credit to Service Fees Revenue.
D.A debit to Service Fees Expense.
43.After preparing a bank reconciliation, a check outstanding for the payment of advertising would be recorded with:
A.A debit to Advertising Expense.
B.A debit to Cash.
C.A credit to Advertising Expense.
D.No entry is needed.
44.The following data were obtained from the bank statement and from the process of reconciling it:
Bank service charges = $20
Deposit outstanding = $150
Interest earned on the bank account = $10
Checks outstanding = $400
Which items should be deducted from and added to the bank balance in completing the reconciliation?
A.Deduct checks outstanding; add service charges and deposit outstanding.
B.Deduct interest earned; add deposit outstanding.
C.Deduct checks outstanding; add deposit outstanding.
D.Deduct deposit outstanding; add checks outstanding.
45.The balance in the Colt Company’s Cash account on August 31 was $19,700, before the bank reconciliation was prepared. After examining the August bank statement and items included with it, the company’s accountant found:
What is the amount of cash that should be reported in the balance sheet as of August 31?
A.$20,700.
B.$17,200.
C.$18,700.
D.$22,200.
46.The balance shown in the August bank statement of Colt Company was $23,200. After examining the August bank statement and items included with it, the company’s accountant found:
What is the amount of cash that should be reported in the balance sheet as of August 31?
A.$20,700.
B.$17,200.
C.$18,700.
D.$22,200.
47.When preparing a bank reconciliation, a deposit outstanding would be:
A.Added to the company’s cash balance.
B.Added to the bank’s cash balance.
C.Subtracted from the company’s cash balance.
D.Subtracted from the bank’s cash balance.
48.After preparing the bank reconciliation, an NSF check would result in which of the following when recording the adjustment to the company’s cash balance?
A.Debit to Service Fee Expense.
B.Credit to Accounts Payable.
C.Credit to Service Revenue.
D.Debit to Accounts Receivable.
49.A minor amount of cash kept on hand to pay for small purchases is referred to as a:
A.Petty cash fund.
B.Cash receipts fund.
C.Cash payments fund.
D.Cookie jar fund.
50.Which of the following is NOT involved in the replenishment of the petty cash fund?
A.Transactions related to vouchers will be recorded.
B.Management will verify that the total of all vouchers equals the amount of cash missing from the petty cash fund.
C.Weekly payroll checks will be recorded.
D.Management will withdraw cash from the bank and place it in the petty cash fund.
