Accounting Ch. 4

The amount go cash in the cash register from sales totals $534. The amount for sales recorded on the cash register tape was $530. Which journal entry is required?

Cash in bank...........534 Sales............................530 Cash Over and Short....4

Which of the following is not an example of internal control over cash?

Combining the functions of signing checks with the approval of expenditures

What is a transposition error?

Writing $89 as $98

The bookkeeper prepared a check for $68 but accidentally recorded $86. When preparing the bank reconciliation this should be corrected by...

Adding $18 to the book balance

Which of the following items would be added on the company's cash "book" balance on the bank reconciliation?

Interest earned on the bank account

After preparing a bank reconciliation, a journal entry would be required for...

Interest earned on the company's checking account

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

NSF check

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

Outstanding checks

While preparing a bank reconciliation, which of the following items would be subtracted from the balance per the bank statement?

Outstanding checks

Which of the following is the correct entry to establish a petty cash fund in the amount of $300?

Petty Cash Fund........300 Cash...............................300

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

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

If a company erroneously records a $500 deposit as $50 it its records, which of the following must occur when reconciling its bank statement?

The company must increase the balance per its records by $450