Question 1 of 20 5.0/ 5.0 points how would outstanding checks be

Question 1 of 20

5.0/ 5.0 Points

How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?

[removed] A. They would be added to the balance of the bank statement.
[removed] B. They would be subtracted from the balance of the bank statement.
[removed] C. They would be added to the balance per books.
[removed] D. They would be ignored.

Question 2 of 20

0.0/ 5.0 Points

A bank statement includes bank charges. On the bank reconciliation, the item is a/an

[removed] A. addition to the balance per company books.
[removed] B. addition to the balance per bank statement.
[removed] C. deduction from the balance per bank statement.
[removed] D. deduction from the balance per company books.

Question 3 of 20

0.0/ 5.0 Points

Using the following information, calculate 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

[removed] A. $3,000
[removed] B. $4,250
[removed] C. $4,000
[removed] D. $5,500

Question 4 of 20

5.0/ 5.0 Points

Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should

[removed] A. increase its cash account on the company’s books.
[removed] B. decrease its cash account on the company’s books.
[removed] C. increase the ending cash balance on the bank statement.
[removed] D. decrease the ending cash balance on the bank statement.

Question 5 of 20

5.0/ 5.0 Points

Checks that have been processed by the bank and are no longer negotiable are

[removed] A. outstanding checks.
[removed] B. canceled checks.
[removed] C. checks in process.
[removed] D. blank checks.

Question 6 of 20

0.0/ 5.0 Points

The first two numbers of the ABA code listed on the check represent the

[removed] A. Federal Reserve District.
[removed] B. check number.
[removed] C. routing number.
[removed] D. account number.

Question 7 of 20

0.0/ 5.0 Points

Using the following information, determine the adjusted cash balance per bank for Santa’s Packaging on November 30.

Cash balance on the bank statement	$2,350
Customer’s check returned—NSF	500
Customer’s note collected by the bank	600
Deposits in transit, November 30	1,400
Outstanding checks, November 30	2,650

[removed] A. $1,250
[removed] B. $1,100
[removed] C. $1,550
[removed] D. $1,350

Question 8 of 20

0.0/ 5.0 Points

On a bank reconciliation, deposits added to the bank side are called

[removed] A. deposits in transit.
[removed] B. late deposits.
[removed] C. deposits on hold.
[removed] D. outstanding deposits.

Question 9 of 20

5.0/ 5.0 Points

Internal control over a company’s assets should include which of the following?

[removed] A. Responsibilities and duties of employees will be divided.
[removed] B. All cash receipts will be deposited into the bank the same day they arrive.
[removed] C. All cash payments will be made by check (except petty cash).
[removed] D. All of the above

Question 10 of 20

0.0/ 5.0 Points

If the bank charged another company’s check against Shoe Depot’s account, this would be included on the bank reconciliation as a/an

[removed] A. addition to the balance per books.
[removed] B. subtraction from the balance per books.
[removed] C. addition to the balance per bank.
[removed] D. subtraction from the balance per bank.

Question 11 of 20

0.0/ 5.0 Points

A blank endorsement on a check

[removed] A. can be further endorsed by someone else.
[removed] B. cannot be further endorsed by someone else.
[removed] C. is the safest type of endorsement.
[removed] D. permits only the original endorser to get the money.

Question 12 of 20

5.0/ 5.0 Points

Advantages of online banking include

[removed] A. convenience.
[removed] B. transaction speed.
[removed] C. effectiveness.
[removed] D. All of the above

Question 13 of 20

5.0/ 5.0 Points

If the written amount on the check doesn’t match the amount expressed in figures, the bank may

[removed] A. pay the amount written in words.
[removed] B. return the check unpaid.
[removed] C. contact the drawer to see what was meant.
[removed] D. All of the above

Question 14 of 20

5.0/ 5.0 Points

A restrictive endorsement on a check

[removed] A. can be further endorsed by someone else.
[removed] B. is the safest endorsement for businesses.
[removed] C. permits the bank to use its best judgment.
[removed] D. None of the above

Question 15 of 20

0.0/ 5.0 Points

From the bank reconciliation, no entry was recorded for deposits in transit. This would cause

[removed] A. assets to be overstated.
[removed] B. assets to be understated.
[removed] C. no impact since deposits in transit are already included in the balance per books.
[removed] D. no impact since deposits aren’t recorded on the books.

Question 16 of 20

0.0/ 5.0 Points

Company policy for internal control should include all of the following except for which one?

[removed] A. Employees will be rotated.
[removed] B. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks.
[removed] C. The owner (or responsible employee) signs all checks after receiving authorization to pay from the departments concerned.
[removed] D. At time of payment, all supporting invoices or documents will be stamped “paid.”

Question 17 of 20

5.0/ 5.0 Points

The bank statement shows

[removed] A. the beginning bank balance of the cash at the start of the month.
[removed] B. the checks the bank has paid and any deposits received.
[removed] C. any other charges or additions to the bank balance.
[removed] D. All of the above

Question 18 of 20

0.0/ 5.0 Points

The journal entry to reverse the entry of a customer’s nonsufficient-funds check would include a

[removed] A. debit to Cash.
[removed] B. credit to Cash.
[removed] C. debit to Accounts Payable.
[removed] D. credit to Accounts Receivable.

Question 19 of 20

0.0/ 5.0 Points

A full endorsement on a check

[removed] A. is the same as a blank endorsement.
[removed] B. can be endorsed only by the person or company named in the original endorsement.
[removed] C. is the safest endorsement for businesses.
[removed] D. None of the above

Question 20 of 20

0.0/ 5.0 Points

Outstanding checks

[removed] A. have been subtracted on the bank records but not the checkbook records.
[removed] B. haven’t been presented to the bank for payment and haven’t been subtracted from the checkbook.
[removed] C. haven’t been presented to the bank for payment but have been subtracted in the checkbook.
[removed] D. have been returned to the business for nonpayment.

Question 1 of 20 5.0/ 5.0 points how would outstanding checks be

Get 20% Discount on This Paper

Research Papers