Accounting 111 - Chapter 6 Multiple Choice Questions
A check drawn by a company for $340 in payment of a liability was recorded in the journal as $430. 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. addition to the balance per the company's records
A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. 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
a. debit accounts payable; credit cash
A check drawn by a company in payment of a voucher for $965 was recorded in the journal as $695. 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
a. deduction from the balance per the company's records
A check drawn by a company for $340 in payment of liability was recorded in the journal as $430. 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
c. debit cash; credit accounts payable
Minor company had checks outstanding totaling $19,200 on its April bank reconciliation. In May, Minor Company issued checks totaling $64,900. The May bank statement shows that $47,600 in checks cleared the bank in May. A check from one of Minor Company's customers of $300 was also returned and marked NSF. The amount of outstanding checks on Minor Company's May bank reconciliation should be... a. $28,400 b. 36,800 c. $17,300 d. $36,500
d. $36,500 Explanation: April Bank Reconciliation + Checks Issued in May - Checks Cleared in May (19,200 + 64,900 - 47,600 = 36,500)
Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. 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 the company's records
d. addition to the balance per company's records
In normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement you are advised that this check for $775 is NSF. The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75. During a bank reconciliation, you will... a. subtract both values from balance according to the bank b. add both values to balance according to books c. add both values to balance according to bank d. subtract both values from balance according to books
d. subtract values from balance according to books
A check for $342 was erroneously charged by the bank as $432. In order for the bank reconciliation to balance you must add $90 to the bank statement balance. a. True b. False
a. True
In preparing a bank reconciliation, the amount of an error indicating the recording of a check in the journal for an amount larger than the amount of the check is added to the balance per company's records. a. True b. False
a. True