Bank Statement Company's Books Concepts T/F Hodge Podge

100

What is Bank Statement
Deposits Outstanding (deposit in Transit): Update on the bank statement or on company's books?

100

What is the cash record
Do we update journal entries for the bank statement or cash record?

100

What is Notes Receivable and Interest Earned
What is an example of a Credit Memo?

100

What is true
You must journalize the adjustments to the company's books when reconciling the bank statement.

100

What is the purpose of bank reconciliation.
It should be prepared regularly as part of the internal control system of the business to check: a) the accuracy of the cash book b) the accuracy of the bank statement c) that undue delay is not occurring between payments, receipts and their clearance by the bank d) to discover payments made and items received by the bank not entered in the cash book

200

What is outstanding checks.
Checks written and recorded by the depositor but not yet paid by the bank at the bank statement end date.

200

What is ledger and increase
Notes received: update bank statement or company ledgers? Increase or decrease?

200

What is service fees and NSF checks
What is an example of a Debit Memo?

200

What is true
Deposits in transit update on the bank statement.

200

What are the reasons for differences in bank statement and cash book
Items (not consisting of errors) which appear in the bank statement but which are not in the cash book, interest and bank charges OR errors made in the compilation of the cash book or the bank statement.

300

What is increase
Deposits in transit increase or decrease the balance on the bank statement?

300

What is Ledger and increase
Interest earned: update bank statement or company ledgers? Increase or decrease?

300

What is increase.
What effect will interest have on the company's books?

300

What is false
Interest earned update on the bank statement.

300

What is B
When preparing a bank reconciliation, outstanding checks should be: a.Added to the balance of the bank statement b.Deducted from the balance of the bank statement c.Added to the balance of the depositor’s records d.Deducted from the balance of the depositor’s records

400

What is decrease
Outstanding checks increase or decrease the bank balance?

400

What is Ledger and increase
"Nonsufficient" Funds checks (NSF): update bank statement or company ledger? Increase or decrease?

400

What is increase.
What effect will notes receivable have on the company's books?

400

What is false. You journalize the so that the cash ledger is brought up to date.
You must journalize the adjustments to the company's books do that the supplies ledger is brought up to date.

400

What is A
While doing the bank reconciliation you realize check no. 814 for $250 was erroneously entered as $520 by the company. To correct this on the bank reconciliation you would. a.Decrease the cash balance per books b.Decrease the cash balance per bank c.Increase the cash balance per books d.Increase the cash balance per bank

500

What is no
Will the bank adjustments require a journal entry?

500

What is NSF
A check that is written for an amount that is larger than the account balance when the check is presented to the depositors bank.

500

What is decrease
What effect will service fees have on the company's books?

500

What is false.
Outstanding checks are subtracted from the company's books.

500

What is C
A bank reconciliation explains the differences between: a.The balance of the cash in the bank and the budgeted expenditures for the upcoming accounting period b.Cash receipts and cash disbursements for the period c.The cash balance on the bank statement and the cash balance of the depositor’s records d.None of the above

Bank Reconciliation

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