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intro_accounting_exam_8_11 April

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Question;Question 1 of 20;5.0 Points;On a bank;reconciliation, deposits added to the bank side are called __________.;A. deposits in transit;B. late deposits;C. deposits on hold;D. outstanding deposits;Question 2 of 20;5.0 Points;Which of the following;bank reconciliation items would be reflected in a journal entry?;A. error made by the bank;B. outstanding checks;C. bank service charges;D. deposit in transit;Question 3 of 20;5.0 Points;A bank service;charge would be included on the bank reconciliation as a(n. __________.;A. addition to the balance per books;B. subtraction from the balance per books;C. addition to the balance per bank;D. subtraction from the balance per bank;Question 4 of 20;5.0 Points;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;A. $3,000;B. $4,250;C. $4,000;D. $5,500;Question 5 of 20;5.0 Points;From the bank;reconciliation no entry was recorded for deposits in transit. This would cause;A. assets to be overstated;B. assets to be understated;C. no impact since deposits in transit are;already included in the balance per books;D. no impact since deposits are not recorded;on the books;Question 6 of 20;5.0 Points;Scotch Services;received a credit memorandum from the bank. During the bank reconciliation they;should __________.;A. increase their cash account on the;company's books;B. decrease their cash account on the;company's books;C. increase the ending cash balance on the;bank statement;D. decrease the ending cash balance on the;bank statement;Question 7 of 20;5.0 Points;Endorsing a;check __________.;A. guarantees payment;B. transfers the right to deposit or transfer;cash;C. cancels the transaction;D. All of these answers are correct.;Question 8 of 20;5.0 Points;Which item(s.;will require a journal entry to update the balance in the Cash account?;A. checks outstanding and deposits in transit;B. bank service charges, note collected by;the bank, and deposits in transit;C. bank service charges, note collected by;the bank, and error made by Accounting Services;D. None of these answers are correct.;Question 9 of 20;5.0 Points;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;A. $3,000;B. $4,250;C. $4,000;D. $5,500;Question 10 of 20;5.0 Points;If the written;amount on the check does not match the amount expressed in figures, the bank;may __________.;A. pay the amount written in words;B. return the check unpaid;C. contact the drawer to see what was meant;D. All of these answers are correct.;Question 11 of 20;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?;A. They would be added to the balance of the;bank statement.;B. They would be subtracted from the balance;of the bank statement.;C. They would be added to the balance per books.;D. They would be ignored.;Question 12 of 20;5.0 Points;Outstanding;checks __________.;A. have been subtracted on the bank records;but not the checkbook records;B. have not been presented to the bank for;payment and have not been subtracted from the checkbook;C. have not been presented to the bank for;payment but have been subtracted in the checkbook;D. have been returned to the business for;nonpayment;Question 13 of 20;5.0 Points;Internal control;over a company's assets should include which of the following?;A. Responsibilities and duties of employees;will be divided.;B. All cash receipts will be deposited into;the bank the same day they arrive.;C. All cash payments will be made by check;(except petty cash..;D. All of these answers are correct.;Question 14 of 20;5.0 Points;A blank;endorsement on a check __________.;A. can be further endorsed by someone else;B. cannot be further endorsed by someone else;C. is the safest type of endorsement;D. permits only the original endorser to get;the money;Question 15 of 20;5.0 Points;A nonsufficient;funds check was returned to your company. How does the bank treat this on your;bank statement?;A. It is added to the bank balance.;B. It is shown as a debit memo.;C. It is shown as a credit memo.;D. None of these answers are correct.;Question 16 of 20;5.0 Points;Which item;should be added to the company's book balance during the bank reconciliation?;A. deposit in transit;B. check outstanding;C. bank service charge;D. note collected by the bank;Question 17 of 20;5.0 Points;The first two;numbers of the ABA code listed on the check represent __________.;A. the Federal Reserve District;B. the check number;C. the routing number;D. the account number;Question 18 of 20;5.0 Points;Checks that have;been processed by the bank and are no longer negotiable are __________.;A. outstanding checks;B. canceled checks;C. checks in process;D. blank checks Reset Selection;Question 19 of 20;5.0 Points;The journal;entry to reverse the entry of a customer's nonsufficient funds check would;include a __________.;A. debit to Cash;B. credit to Cash;C. debit to Accounts Payable;D. credit to Accounts Receivable;Question 20 of 20;5.0 Points;Company policy;for internal control should include all of the following EXCEPT for what?;A. Employees will be rotated.;B. Monthly bank statements should be sent to;and reconciled by the same employees who authorize payments and write checks.;C. The owner (or responsible employee. signs;all checks after receiving authorization to pay from the departments concerned.;D. At time of payment, all supporting;invoices or documents will be stamped "paid.

 

Paper#37381 | Written in 18-Jul-2015

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