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Accounting Basics-lesson9

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Question 1 of 20;Outstanding checks;A. have been subtracted on the bank records but not the checkbook records.;B. haven?t been presented to the bank for payment and haven?t been subtracted from the checkbook.;C. haven?t been presented to the bank for payment but have been subtracted in the checkbook.;D. have been returned to the business for nonpayment.;Question 2 of 20;A restrictive endorsement on a check;A. can be further endorsed by someone else.;B. is the safest endorsement for businesses.;C. permits the bank to use its best judgment.;D. None of the above;Question 3 of 20;Endorsing a check;A. guarantees payment.;B. transfers the right to deposit or transfer cash.;C. cancels the transaction.;D. All of the above;Question 4 of 20;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.;Question 5 of 20;If the bank charged another company?s check against Shoe Depot?s account, this would be included on the bank reconciliation as a/an;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 6 of 20;The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following;? A check for $200 to pay the electric bill was recorded on the books as $20.;? Included on the bank statement was a note collected by the bank for $400 plus interest of $30.;? Checks outstanding totaled $260.;? Bank service charges were $50.;? Deposits in transit were $2,140.;The adjusted cash balance at the end of August should be;A. $9,810.;B. $7,620.;C. $7,980.;D. $8,180.;Question 7 of 20;Advantages of online banking include;A. convenience.;B. transaction speed.;C. effectiveness.;D. All of the above;Question 8 of 20;A bank service charge would be included on the bank reconciliation as a/an;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 9 of 20;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 10 of 20;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;A. $1,250;B. $1,100;C. $1,550;D. $1,350;Question 11 of 20;The drawee is the;A. person who writes the check.;B. bank with which the drawer has an account.;C. person to whom the check is payable.;D. person who reconciles the account.;Question 12 of 20;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 13 of 20;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 14 of 20;The first two numbers of the ABA code listed on the check represent the;A. Federal Reserve District.;B. check number.;C. routing number.;D. account number.;Question 15 of 20;The check is written and signed by the;A. drawer.;B. drawee.;C. payee.;D. payer.;Question 16 of 20;A bank statement includes bank charges. On the bank reconciliation, the item is a/an;A. addition to the balance per company books.;B. addition to the balance per bank statement.;C. deduction from the balance per bank statement.;D. deduction from the balance per company books.;Question 17 of 20;Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should;A. increase its cash account on the company?s books.;B. decrease its 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 18 of 20;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 the above;Question 19 of 20;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 20 of 20;A full endorsement on a check;A. is the same as a blank endorsement.;B. can be endorsed only by the person or company named in the original endorsement.;C. is the safest endorsement for businesses.;D. None of the above

 

Paper#81627 | Written in 18-Jul-2015

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