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
A
Which of the following would be subtracted from the balance per bank on a bank reconciliation?
A)Outstanding checks
B)Deposits in transit
C)Notes collected by the bank
D)Service charges
A
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

A
A $150 petty cash fund has cash of $28 and receipts of $110. The journal entry to replenish the account would include a
A)credit to Petty Cash for $82.
B)debit to Cash for $110.
C)debit to Cash Over and Short for $12.
D)credit to Cash for $110
C
A $140 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a credit to
A)Cash for $120.
B)Cash Over and Short for $2.
C)Petty Cash for $122.
D)Cash for $122.
D
On the bank’s accounting records, customers’ accounts are normally shown as
A)debit balances
B)expenses
C)an asset
D)a liability
D
The debit balance in Cash Short and Over at the end of an accounting period is reported as
A)an expense on the income statement
B)income on the income statement
C)an asset on the balance sheet
D)a liability on the balance sheet
A
The type of account and normal balance of Petty Cash is a(n)
A)revenue, credit
B)asset, debit
C)liability, credit
D)expense, debit
B
The amount of deposits in transit is included on the bank reconciliation as a(n)
A)deduction from the balance per the company’s books
B)deduction from the balance per bank statement
C)addition to the balance per bank statement
D)addition to the balance per company books
C
A $100 petty cash fund contains $89 in petty cash receipts, and $7.50 in currency and coins. The journal entry to record the replenishment of the fund would include a
A)credit to Petty Cash for $96.50.
B)credit to Cash for $89.
C)debit to Cash Short and Over for $3.50
D)credit to Cash Short and Over for $3.50
C
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
B
Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. This item would be included on the bank reconciliation as a(n)
A)deduction from the balance per company’s records
B)addition to the balance per bank statement
C)deduction from the balance per bank statement
D)addition to the balance per company’s records
D
Which of the following would be subtracted from the balance per books on a bank reconciliation?
A)Outstanding checks
B)Deposits in transit
C)Notes collected by the bank
D)Service charges
D
Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company’s accounts?
A)debit Notes Receivable; credit Cash
B)debit Cash; credit Miscellaneous Income
C)debit Cash; credit Notes Receivable
D)debit Accounts Receivable; credit Cash
C
Accompanying the bank statement was a debit memo for an NSF check received from a customer. This item would be included on the bank reconciliation as a(n)
A)deduction from the balance per company’s records
B)addition to the balance per bank statement
C)deduction from the balance per bank statement
D)addition to the balance per company’s records
A
Which of the following would be deducted from the balance per books on a bank reconciliation?
A)Service charges
B)Outstanding checks
C)Deposits in transit
D)Notes collected by the bank
A
A $135 petty cash fund has cash of $44 and receipts of $93. The journal entry to replenish the account would include a
A)credit to Petty Cash for $93.
B)debit to Cash for $93.
C)credit to Cash Over and Short for $2.
D)credit to Cash for $49.
C
Entries are made to the Petty Cash account when
A)making payments out of the fund.
B)recording shortages in the fund.
C)replenishing the petty cash fund.
D)establishing the fund.
D
Receipts from cash sales of $7,500 were recorded incorrectly in the cash receipts journal as $5,700. What entry is required in the company’s accounts?
A) debit Sales; credit Cash
B) debit Cash; credit Accounts Receivable
C) debit Cash; credit Sales
D) debit Accounts Receivable; credit Cash
C
Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the company. This item is a(n)
A)deduction from the balance per company’s records
B)addition to the balance per bank statement
C)deduction from the balance per bank statement
D)addition to the balance per company’s records
D
Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry is required in the company’s accounts?
A)debit Other Income; credit Cash
B)debit Cash; credit Other Income
C)debit Cash; credit Accounts Receivable
D)debit Accounts Receivable; credit Cash
D
Which of the following would be added to the balance per books on a bank reconciliation?
A)Service charges
B)Outstanding checks
C)Deposits in transit
D)Notes collected by the bank
D
The amount of the outstanding checks is included on the bank reconciliation as a(n)
A)deduction from the balance per company’s records
B)addition to the balance per bank statement
C)deduction from the balance per bank statement
D)addition to the balance per company’s records
C
Following the completion of the bank reconciliation, an adjusting entry was made that debited cash and credited Interest Revenue. Therefore the bank reconciliation must have included an item that was
A)deducted from the balance per company’s records
B)deducted from the balance per bank statement
C)added to the balance per bank statement
D)added to the balance per company’s records
D
The debit recorded in the journal to reimburse the petty cash fund is to
A)Petty Cash
B)Accounts Receivable
C)Cash
D)various accounts for which the petty cash was disbursed
D
The amount of cash to be reported on the balance sheet at June 30 is the
A)total of the cash column in the cash receipts journal as of June 30
B)adjusted balance appearing in the bank reconciliation for June 30
C)total of the cash column in the cash payments journal as of June 30
D) balance as of June 30 on the bank statement
B
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
A
The cash account in the company’s ledger is a(n)
A)asset with a debit balance
B)asset with a credit balance
C)liability with a debit balance
D) liability with a credit balance
A
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