acct test 2

deposits in transit is _____ to the bank balance no a bank reconciliation

added

the EFT received by the bank from a customers note receivable owed to the company is ______

added to the book balance

deposits in _______ are added to the ____ side o the bank reconciliation

transit ; bank

T/F: Interest deposited would be added to your cash balance based on the information on your bank statement

true

electronic funds transfer discovered on the bank statement ______

will need to be adjusted on your records because your cash balance is affected

electronic funds transfers discovered on the bank statement ________

will need to be adjusted on your records because your cash balance is affected

if the company's accountant mistakenly recorded a $58 deposit as $85, the error would be shown on the bank reconciliation as a(n) _____

$27 deduction from the book balance

to determine the cost of goods sold for the period you use the formula:

subtracting ending inventory from the goods available to sell (which is the beginning inventory plus purchases)

the following are true regarding a _______ ____________: -it includes interest earned -it may include service charges -it lists all checks that have cleared the bank -it may include NSF checks

bank statement

the following are true regarding a what? -it lists all checks that have cleared the bank -it includes interest earned -it may include NSF checks -it may include service charges

bank statement

NSF checks from customers should be subtracted from the _____ balance on a bank reconciliation

book

outstanding checks written by the company should be a(n)_______ no the company's bank reconciliation

deduction from the bank balance

which of the following reconciling items does not require a journal entry

deposit in transit

cash ______ are short term, highly ______ investments purchased within ______ of maturity

equivalents; liquid; 3 months

outstanding checks are checks that ______

have been written but have not yet cleared the bank

cost of goods sold, gross profit, and sales revenue are all found on the _____________

income statement

a $250 bank deposit made on the last day of the month did not appear on this month's bank statement. How would this item be treated on the bank reconciliation?

it would be added to the bank balance

NSF checks stands for _______

not sufficient funds

bank reconciliations are needed to reconcile for __________ _______ and ________ ___ _______

outstanding checks & deposits in transit

"the amount of inventory on hand and sold is unavailable during the accounting period" is a major drawback of the ________ _________ __________

periodic inventory system

restricted cash is reported _____

separately as an asset on the balance sheet

in preparing your bank reconciliation, you notice that you recorded a deposit as $100 instead of $10, you should _______

subtract $90 from your cash and make an entry

bank service charge is _______ from the bank balance on a bank reconciliation

subtracted

service charges are ____ of bank reconciliation

subtracted from the books balance