Question Details

Management 1A Week 9 Quiz 8 CHAPTER 8 PART 7

101.	Which one of the following is not necessarily a party to a check?
a.	Maker
b.	Buyer
c.	Payee
d.	Payer


	102.	A bank statement
a.	lets a depositor know the financial position of the bank as of a certain date.
b.	is a credit reference letter written by the depositor's bank.
c.	is a bill from the bank for services rendered.
d.	shows the activity which increased or decreased the depositor's account balance.


	103.	Which one of the following would not cause a bank to debit a depositor's account?
a.	Bank service charge
b.	Collection of a note receivable
c.	Wiring of funds to other locations
d.	Checks marked NSF


	104.	A company maintains the asset account, Cash in Bank, on its books, while the bank maintains a reciprocal account which is
a.	a contra-asset account.
b.	a liability account.
c.	also an asset account.
d.	an owner's equity account.


105.	A remittance advice attached to a company check provides
a.	details about the running cash balance in the checking account.
b.	the magnetic bank routing numbers.
c.	the explanation of the purpose of the check.
d.	the signature space for the maker.


106.	A deposit made by a company will appear on the bank statement as a
a.	debit.
b.	credit.
c.	debit memorandum.
d.	credit memorandum.


107.	A check returned by the bank marked "NSF" means
a.	no service fee.
b.	no signature found.
c.	not satisfactorily filled-out.
d.	not sufficient funds
 
108.	A debit memorandum would not be issued by the bank for
a.	a bank service charge.
b.	the issuance of traveler's checks.
c.	the wiring of funds.
d.	the collection of a notes receivable.


109.	If the month-end bank statement shows a balance of $54,000, outstanding checks are $15,000, a deposit of $6,000 was in transit at month end, and a check for $900 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
a.	$44,100.
b.	$45,000.
c.	$45,900.
d.	$62,100.

110.	In preparing its bank reconciliation for the month of April 2014, Delano, Inc. has available the following information.
Balance per bank statement, 4/30/14	$78,600
NSF check returned with 4/30/14 bank statement	940
Deposits in transit, 4/30/14	10,000
Outstanding checks, 4/30/14	10,400
Bank service charges for April	60
What should be the adjusted cash balance at April 30, 2014?
a.	$77,260.
b.	$77,600.
c.	$78,020.
d.	$78,200.

111.	The cash account shows a balance of $90,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customer- check for $640 was returned because it was NSF. A customer- check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $192. The correct balance in the cash account was
a.	$91,580.
b.	$91,634.
c.	$92,400.
d.	$96,634.

 
112.	The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer- check for $1,300 was returned because it was NSF. A customer- check for $1,380 was recorded on the books as $1,920, and a check written for $318 was recorded as $390. The correct balance in the cash account was
a.	$42,048.
b.	$42,192.
c.	$43,128.
d.	$51,392.


113.	If the month-end bank statement shows a balance of $72,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $3,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
a.	$33,000.
b.	$36,000.
c.	$72,000.
d.	$114,000.


114.	In preparing its bank reconciliation for the month of April 2014, Haskins, Inc. has available the following information.
Balance per bank statement, 4/30/14	$40,920
NSF check returned with 4/30/14 bank statement	1,350
Deposits in transit, 4/30/14	10,500
Outstanding checks, 4/30/14	15,600
Bank service charges for April	60
What should be the adjusted cash balance at April 30, 2014?
a.	$34,410.
b.	$34,470.
c.	$35,760.
d.	$35,820.


 
115.	In preparing its August 31, 2014 bank reconciliation, Annie Corp. has available the following information:
Balance per bank statement, 8/31/14	$64,950
Deposit in transit, 8/31/14	11,700
Return of customer- check not sufficient funds, 8/30/14	1,800
Outstanding checks, 8/31/14	8,250
Bank service charges for August	300
At August 31, 2014, Annie- adjusted cash balance is
a.	$56,700.
b.	$56,400.
c.	$68,400.
d.	$61,500.


116.	Trudy, Inc. had the following bank reconciliation at March 31, 2014:
Balance per bank statement, 3/31/14	$37,200
Add: Deposit in transit	    6,300
	43,500
Less: Outstanding checks	    8,600
Balance per books, 3/31/14	$34,900
Data per bank for the month of April 2014 follow:
Deposits	$46,700
Disbursements	49,700
All reconciling items at March 31, 2014 cleared the bank in April. Outstanding checks at April 30, 2014 totaled $6,000. There were no deposits in transit at April 30, 2014. What is the cash balance per books at April 30, 2014?
a.	$25,900
b.	$31,900
c.	$34,200
d.	$38,500


	117.	On a bank reconciliation, deposits in transit are
a.	added to the bank balance.
b.	deducted from the bank balance.
c.	added to the book balance.
d.	deducted from the book balance.

 
118.	A bank reconciliation should be prepared
a.	whenever the bank refuses to lend the company money.
b.	when an employee is suspected of fraud.
c.	to explain any difference between the depositor's balance per books and the balance per bank.
d.	by the person who is authorized to sign checks.


119.	Deposits in transit
a.	have been recorded on the company's books but not yet by the bank.
b.	have been recorded by the bank but not yet by the company.
c.	have not been recorded by the bank or the company.
d.	are checks from customers which have not yet been received by the company.


120.	In preparing a bank reconciliation, outstanding checks are
a.	added to the balance per bank.
b.	deducted from the balance per books.
c.	added to the balance per books.
d.	deducted from the balance per bank.