Bank Balance
A check involves three parties. The person who orders the bank to pay a certain amount of money is called the
a. drawer.
b. endorser.
c. payee.
d. drawee.
a. drawer.
To reconcile the bank statement, which of the following amounts would be subtracted from the bank statement balance?
a. Outstanding checks
b. Amounts collected by the bank for the depositor's account
c. Deposits in transit
d. Service charge
a. Outstanding checks
Question Content Area
A petty cash fund of $200 has $17 in cash, $180 in petty cash vouchers, and $3 in miscellaneous receipts not included with the petty cash vouchers. The proper journal entry to replenish the fund would include a credit to Cash for
a. $3.
b. $180.
c. $183.
d. $17.
c. $183.
On a bank reconciliation, deposits that were not entered by the bank before the bank statement was prepared are known as
a. unrecorded deposits.
b. deposits in transit.
c. restrictive deposits.
d. NSF deposits.
b. deposits in transit.
To establish a change fund, Cash should be credited and Change Fund should be debited.
a. True
b. False
a. True
A check involves three parties. The person directed to receive the money is called the
a. drawee.
b. payee.
c. drawer.
d. endorser.
b. payee.
To reconcile the bank statement, which of the following amounts would be subtracted from the checkbook balance?
a. Service charge
b. Amounts collected by the bank for the depositor's account
c. Deposits in transit
d. Outstanding checks
a. Service charge
Question Content Area
The petty cash payments record indicates classified expenditures as follows: Automobile Expense, $20; Supplies Expense, $12; Postage Expense, $6; and Miscellaneous Expense, $5. The journal entry to replenish the petty cash fund would include a credit to Cash for
a. $5.
b. $43.
c. $38.
d. $11.
b. $43.
If the person who is named as payee on a check transfers the right to receive the money by signing their name on the back of the check, the signature is called a
a. restrictive endorsement.
b. regular endorsement.
c. dishonored endorsement.
d. blank endorsement.
d. blank endorsement.
If the cash short and over account has a debit balance at the end of the fiscal year, the balance represents a revenue.
a. True
b. False
False
The process of bringing the book balance and the bank balance into agreement is called
a. preparing a statement of payment.
b. reconciling the bank statement.
c. preparing a statement of disbursements.
d. proving the cash.
b. reconciling the bank statement.
In reconciling a bank statement, the bank statement balance is $1,000, and the balance per books is $1,205. A bank service charge is $5, a deposit in transit totals $500, and outstanding checks total $300. The journal entry for a bank service charge would include
a. debiting Accounts Payable and crediting Cash.
b. debiting Miscellaneous Expense and crediting Cash.
c. debiting Cash and crediting Miscellaneous Expense.
d. debiting Cash and crediting Owner's Capital.
b. debiting Miscellaneous Expense and crediting Cash.
If, in the effort to prove cash, a shortage is found, the amount is treated as a(n)
a. petty cash transaction.
b. cash receipts transaction.
c. expense.
d. revenue earned transaction.
c. expense.
A check involves three parties. The bank in which the drawer has money on deposit is called the
a. drawer.
b. payee.
c. endorser.
d. drawee.
d. drawee.
In reconciling the bank statement, the outstanding checks are added to the balance shown on the bank statement.
a. True
b. False
b. False
On a bank reconciliation, checks issued during the period that were not presented to the bank for payment before the bank statement was prepared are known as
a. NSF checks.
b. outstanding checks.
c. dishonored checks.
d. deposits in transit.
b. outstanding checks.
Question Content Area
A debit to Accounts Receivable for $50 and a credit to Cash for $50 would be an accurate journal entry to record
a. petty cash.
b. electronic funds transfers (EFTs).
c. ATM deposits.
d. not sufficient funds (NSF) checks.
d. not sufficient funds (NSF) checks.
To sign the back of a check with the name of the company and "Pay to First United Bank" is an example of a
a. restrictive endorsement.
b. blank endorsement.
c. signature card.
d. canceled check.
a. restrictive endorsement.
In reconciling a bank statement, the bank statement balance is $1,000, and the balance per books is $1,205. A bank service charge is $15, a deposit in transit totals $500, and outstanding checks total $300. The adjusted book balance is
a. $1,505.
b. $1,205.
c. $1,190.
d. $1,490.
c. $1,190.
The check written to establish the petty cash fund is entered in the journal by
a. debiting Cash and crediting Petty Cash.
b. debiting Owner’s Capital and crediting Petty Cash.
c. debiting Petty Cash and crediting Owner’s Capital.
d. debiting Petty Cash and crediting Cash.
d. debiting Petty Cash and crediting Cash.
Whenever the bank mails a credit memo to the depositor indicating the amount of interest credited to the account, the transaction that would be entered in the accounting records of the depositor would include
a. debiting Interest Expense and crediting Cash.
b. debiting Cash and crediting Interest Earned.
c. debiting Cash and crediting Interest Expense.
d. debiting Interest Earned and crediting Cash.
b. debiting Cash and crediting Interest Earned.
To reconcile the bank statement, which of the following amounts would be added to the checkbook balance?
a. Service charge
b. Amounts collected by the bank for the depositor's account
c. Deposits in transit
d. Outstanding checks
b. Amounts collected by the bank for the depositor's account
Check No. 450, a payment of $54 for the telephone bill, was incorrectly entered on the check stub as $45. Which of the following adjustments needs to be made?
a. Decrease the bank statement balance
b. Decrease the book balance
c. Increase the bank statement balance
d. Increase the book balance
b. Decrease the book balance
A petty cash fund of $200 has $27 in cash, $170 in petty cash vouchers, and $3 in miscellaneous receipts not included with the petty cash vouchers. The debit to Cash Short and Over would be
a. $173.
b. $0.
c. $170.
d. $27.
b. $0.
Cash Sales from the cash register tapes totaled $882. There is a change fund of $100. The cash count indicates that $984 is in the cash drawer. What journal entry would be required?
a. Debit Miscellaneous Expense for $2; credit Cash Short and Over for $2
b. Debit Cash Short and Over for $2; credit Miscellaneous Expense for $2
c. Debit Cash for $884; credit Revenues for $882 and Cash Short and Over for $2
d. Debit Cash for $982 and Cash Short and Over for $2; credit Revenues for $984
c. Debit Cash for $884; credit Revenues for $882 and Cash Short and Over for $2