Introduction to Accounting Lesson 8 Exam
Calculate, from the following information the adjusted cash balance at the end of April. Bank statement ending cash balance $2,000 General ledger cash balance ending 3,250 Bank monthly service charge 45 Deposits in transit 2,500 Outstanding checks 1,500 NSF check returned with bank statement 205
$3,000
Calculate, from the following information the adjusted cash balance at the end of April. Bank statement ending cash balance $2,000 General ledger cash balance ending 3,250 Bank monthly service charge 45 Deposits in transit 2,500 Outstanding checks 1,500 NSF check returned with bank statement 205
$3,000
Advantages of on-line banking include __________. convenience transaction speed effectiveness
All of the above answers are correct.
An example of an internal control is __________. the use of a bank account the use of pre-numbered checks the use of checks with reference source documents
All of these answers are correct.
Internal control over a company's assets should include which of the following? Responsibilities and duties of employees will be divided. All cash receipts will be deposited into the bank the same day they arrive. All cash payments will be made by check (except petty cash..
All of these answers are correct.
The bank statement shows __________. the beginning bank balance of the cash at the start of the month the checks the bank has paid and any deposits received any other charges or additions to the bank balance
All of these answers are correct.
A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement?
It is shown as a debit memo.
Company policy for internal control should include all of the following EXCEPT for what?
Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.
How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
They would be subtracted from the balance of the bank statement.
Which of the following bank reconciliation items would be reflected in a journal entry?
bank service charges
A full endorsement on a check __________.
can be endorsed only by the person or company named in the original endorsement
A blank endorsement on a check __________.
can be further endorsed by someone else
The journal entry to reverse the entry of a customer's nonsufficient funds check would include a __________.
credit to Cash
On a bank reconciliation, deposits added to the bank side are called __________.
deposits in transit
The check is written and signed by the __________.
drawer
Outstanding checks __________.
have not been presented to the bank for payment but have been subtracted in the checkbook
A restrictive endorsement on a check __________.
is the safest endorsement for businesses
Which item should be added to the company's book balance during the bank reconciliation?
note collected by the bank
The first two numbers of the ABA code listed on the check represent __________.
the Federal Reserve District
Endorsing a check __________.
transfers the right to deposit or transfer cash
