Accounting: Chapter 9: Terms and Multiple Choice

The individual amounts in Sales Credit column of Cash Receipts journal are posted to A/R subsidiary ledger.

False

After bank reconciliation statement is completed, firm may have to make an entry in accounting records for:

NSF checks

Most appropriate form of endorsement of check for business purpose is:

Restrictive endorsement

On a bank reconciliation statement, you would find all of the following except:

List of canceled checks

If check written by a firm is not canceled by the bank and returned with months bank statement, firm should:

Cosndier this check as outstanding when preparing the bank reconciliation

Entry to firms accounting records for credit customers check that was returned by bank marked "NSF" would include:

DEBIT to Cash A/R and CREDIT to Cash

Entry to replenish Petty Cash Fund includes:

Debits to various expense accounts and credit to Cash

Which of these would not be shown as adjustment to book balance on bank reconciliation statement:

Deposit in transit

Accurate balance on bank reconciliation statement you must deduct an nsf check from the bank statement balance.

False

Check that has full endorsement is further endorsed by any bearer and is not safe as a check with blank endorsement.

False

Entry to record payment of invoice w/in the cash discount period includes DEBIT to Purchases Discounts account.

False

Entry to record the reciept of promissory note to replace an open account is recorded in the Cash Receipts journal.

False

If Cash is over, it is entered to Other Account Credit column of Cash Receipts journal and figure is circled.

False

Monthly bank statement should be received and reconciled by same employee who deposits Cash reciepts.

False

On bank reconciliation statement, outstanding checks are shown as deduction from book balance.

False

The Entry to replenish Petty Cash ibdludes a DEBIT to Petty Cash fund & CREDIT to Cash.

False

To arrive at an accurate balance on bank reconciliation statement, outstanding checks should be:

Added to Bank Statement balance

Transaction appropriately recorded in Cash Payments Journal will always include recording if amount in Cash Debit column.

False

Upon collection of amount due in interest-bearing promissory note from a customer, you would DEBIT Cash, CREDIT Notes Receivable and:

CREDIT Interest Income

Cash sale of merch. would be recorded in:

Cash Receipts journal

Entry to record qddiotnak investment by owner is recorded in:

Cash Receipts journal

Firms bank reconciliation statement shows book balance kd $15,820, and NSF check of $400, and a service charge of $20. It's adjusted book balance:

$15,400

Record payment if purchase invoice when Cash discount is taken, you would:

Debit A/P, credit Purchases Discount, credit Cash

Firm appropriately wrote a check for $78 but entered amount as payment $87. Know bank reconciliation statement this error would be shown as:

An addition of $9 to the book balance

Included with its bank statement a firm may receive credit memorandum, which would indicate:

An addition to firms account balance because bank collected the amount due on promissory note from a customer of the firm