ACC 201 Ch 4 Quiz

A debit memo appeared on the May bank statement. How should this amount be treated on the May bank reconciliation?

a. Deduct it from the company's balance.

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31. Cash balance according to the general ledger: ? Bank statement balance: $18,500 Outstanding checks: 2,700 Customer's bounced check: 350 Bank service charges: 100 Deposits in transit: 1,000 Interest earned on the checking account: 60 Refer to Dance Town Academy. How will the deposits in transit be handled on a bank reconciliation?

a. add to the bank statement balance

Which of the following is a reconciling item on the bank side of a bank reconciliation?

a. outstanding checks

Which of the following would not appear on a bank statement for a checking account?

a. outstanding checks

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger? Bank statement balance$18,500Outstanding checks2,700Customer's bounced check350Bank service charges100Deposits in transit1,000Interest earned on the checking account60How will the customer's bounced checks be handled on a bank reconciliation?

a. subtract from the balance from the company records

If the balance on the bank statement does not equal the balance per the company's records, then it can be assumed that

c. there will be items reconciling the difference.

A credit memo appeared on the September bank statement. How should this amount be treated on the September bank reconciliation?

b. Add it to the company's balance.

The only essential element of internal control from the following is

b. Procedures for proper authorization of transactions

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger? Bank statement balance$18,500Outstanding checks2,700Customer's bounced check350Bank service charges100Deposits in transit1,000Interest earned on the checking account60Refer to Dance Town Academy. How will the outstanding checks be handled on a bank reconciliation?

b. subtract from the bank statement balance

According to the Sarbanes-Oxley Act of 2002, who is primarily responsible for establishing and maintaining a system of internal control over the company's financial reporting?

c. Management of the company

Which of the following procedures is not part of the preparation of a bank reconciliation for a checking account?

c. Reversing all the transactions recorded on the company's records that do not yet appear on the bank statement.

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger? Bank statement balance$18,500Outstanding checks2,700Customer's bounced check350Bank service charges100Deposits in transit1,000Interest earned on the checking account60Refer to Dance Town Academy. How will the interest earned on the checking account be handled on a bank reconciliation?

c. add to the balance from the company records

In the reconciliation of a bank statement, deposits in transit should be

c. added to the unadjusted bank statement balance.

Checks presented for payment and paid by the bank are known as

c. canceled checks.

A check returned by a bank because the issuer's cash account balance could not cover the check is called a(n)

d. NSF check

Cash collected and recorded by a company but not yet reflected in a bank statement are known as

d. deposits in transit.

The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31.Cash balance according to the general ledger? Bank statement balance$18,500Outstanding checks2,700Customer's bounced check350Bank service charges100Deposits in transit1,000Interest earned on the checking account60Refer to Dance Town Academy. How will the bank services charges be handled on a bank reconciliation?

d. subtract from the balance from the company records