Question 1

To arrive at an accurate balance on a bank reconciliation statement,outstanding checks should be

Accepted Answer

A)   added to the bank statement balance.
B)   added to the book balance.
C)   deducted from the bank statement balance.
D)   deducted from the book balance.E) B) and C)
F) A) and D)

Question 2

Which of the following statements is not correct?

Accepted Answer

A)   In accounting,the term "cash" includes checks,money orders,and funds on deposit in a bank as well as currency and coins.
B)   The cash register proof is used to enter the cash sales and sales tax in the cash receipts journal.
C)   The entry to record the receipt of a promissory note to replace an open account is recorded in the cash receipts journal.
D)   The cash receipts journal has separate columns for debits to Cash,credits to Accounts Receivable,and credits to Sales and Sales Tax Payable.E) A) and D)
F) B) and C)

Question 3

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  An NSF check from a customer.

Accepted Answer

A)   Option A
B)   Option B
C)   Option C
D)   Option DE) None of the above
F) A) and D)

Question 4

Which of the following statements is correct?

Accepted Answer

A)   The entry to record the payment of an invoice within the cash discount period would include a debit to the Purchases Discounts account.
B)   To record a cash purchase of merchandise,the accountant would debit Purchases and credit Cash.
C)   A transaction that is properly recorded in the cash payments journal will always include the recording of an amount in the Cash Debit column.
D)   Purchase discounts is a contra revenue account.E) A) and B)
F) A) and C)

Question 5

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear.  A check written by Bosley Co.for $168 was mistakenly recorded in the company records as $186.

Accepted Answer

A)   Option A
B)   Option B
C)   Option C
D)   Option DE) None of the above
F) B) and C)

Question 6

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980;the canceled check was properly listed on the bank statement at $890.To arrive at an accurate balance on a bank reconciliation statement,the error should be

Accepted Answer

A)   added to the bank statement balance.
B)   added to the book balance.
C)   deducted from the bank statement balance.
D)   deducted from the book balance.E) C) and D)
F) None of the above

Question 7

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?

Accepted Answer

A)   bank service charges
B)   NSF checks
C)   deposits in transit
D)   a charge for printing new checksE) All of the above
F) None of the above

Question 8

The cash receipts journal for Engels Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Accepted Answer

Cr.Accounts Receivab...

Question 9

To arrive at an accurate balance on a bank reconciliation statement,deposits in transit should be

Accepted Answer

A)   added to the bank statement balance.
B)   added to the book balance.
C)   deducted from the bank statement balance.
D)   deducted from the book balance.E) B) and C)
F) A) and D)

Question 10

Read each of the following transactions.Determine the accounts to be debited and credited.
A)Purchased merchandise for $950 in cash.
B)Issued a check for $752 to remit sales tax to the state sales tax authority.
C)Issued a check for $1,894 to purchase supplies.

Accepted Answer

A)Debit Purchases;cr...

Question 11

Included with its bank statement a firm may receive a credit memorandum,which could indicate

Accepted Answer

A)   a bank service charge deducted from the firm's account balance.
B)   the bank's return of a dishonored (NSF) check that was issued by a credit customer of the firm.
C)   a fee for printing new business checks.
D)   an addition to the firm's account balance because the bank collected the amount due on a promissory note from a customer of the firm.E) A) and B)
F) A) and C)

Question 12

In a firm that has a good system of internal control,cash receipts are deposited often.

Accepted Answer

A) True 
 B)False

Question 13

Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts.In June,the business purchases $5,000 of goods on account with terms of 2/10,n/30.Select the correct entry to record the payment of the goods within the discount period.

Accepted Answer

A)  
B)  
C)  
D)  E) B) and C)
F) All of the above

Question 14

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ____________________ the bank statement.

Accepted Answer

The answer of The process of determining why a difference...

Question 15

Record the following transactions for the month of November 2016 on page 8 of a cash receipts journal.Total,prove,and rule the cash receipts journal as of November 30.

Accepted Answer

The answer of Record the following transactions for the month...

Question 16

Of the four categories shown in the form above,which category or categories require journal entries in the firm's records?

Accepted Answer

A)   Bank Statement Balance Additions and Bank Statement Balance Deductions
B)   Bank Statement Balance Additions and Book Balance of Cash Additions
C)   Bank Statement Balance Deductions and Book Balance of Cash Deductions
D)   Book Balance of Cash Additions and Book Balance of Cash DeductionsE) B) and C)
F) A) and D)

Question 17

Valerie's Market uses a perpetual inventory system when recording its cash payments and cash receipts.The business sells $6,000 of goods to a charge account customer with terms of 1/10,n/30.If the customer pays within the discount period,the entry to record the receipt of cash from the customer would include:

Accepted Answer

A)   a debit to Sales Discounts for $60 and a credit to Accounts Receivable for $6,000
B)   a debit to Cash for $6,000 and a credit to Accounts Receivable for $6,000
C)   a debit to Sales Discounts for $600 and a credit to Accounts Receivable for $5,400
D)   a debit to Purchase Discounts for $60 and a credit to Accounts Receivable for $5,940E) B) and C)
F) A) and D)

Question 18

The cash receipts journal for Carlson Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Accepted Answer

Cr.Accounts Receivab...

Question 19

Record the following transactions for the month of June 2016 on page 6 of a cash payments journal.Total,prove,and rule the cash payments journal as of June 30.

Accepted Answer

The answer of Record the following transactions for the month...

Question 20

Read each of the following transactions.Determine the accounts to be debited and credited.
A)Sold merchandise for $200 in cash plus sales tax of $14.
B)Collected $3,400 from credit customers on account.
C)Sold merchandise for $1,600 in cash plus sales tax of $112.There was a cash shortage of $6.

Accepted Answer

A)Debit Cash;credit Sales and ...

Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

Read each of the following transactions.Determine the accounts to be debited and credited. A)Sold merchandise for $200 in cash plus sales tax of $14. B)Collected $3,400 from credit customers on account. C)Sold merchandise for $1,600 in cash plus sales tax of $112.There was a cash shortage of $6.

Correct Answer
verified
A)Debit Cash;credit Sales and ...
View Answer

To arrive at an accurate balance on a bank reconciliation statement,outstanding checks should be

Correct Answer
verified

Record the following transactions for the month of June 2016 on page 6 of a cash payments journal.Total,prove,and rule the cash payments journal as of June 30.

Correct Answer
verified

In a firm that has a good system of internal control,cash receipts are deposited often.

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Correct Answer
verified

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980;the canceled check was properly listed on the bank statement at $890.To arrive at an accurate balance on a bank reconciliation statement,the error should be

Correct Answer
verified

Record the following transactions for the month of November 2016 on page 8 of a cash receipts journal.Total,prove,and rule the cash receipts journal as of November 30.

Correct Answer
verified

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. An NSF check from a customer.

Correct Answer
verified

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ____________________ the bank statement.

Correct Answer
verified

To arrive at an accurate balance on a bank reconciliation statement,deposits in transit should be

Correct Answer
verified

The cash receipts journal for Carlson Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Correct Answer
verified
Cr.Accounts Receivab...
View Answer

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. A check written by Bosley Co.for $168 was mistakenly recorded in the company records as $186.

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Read each of the following transactions.Determine the accounts to be debited and credited. A)Purchased merchandise for $950 in cash. B)Issued a check for $752 to remit sales tax to the state sales tax authority. C)Issued a check for $1,894 to purchase supplies.

Correct Answer
verified
A)Debit Purchases;cr...
View Answer

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?

Correct Answer
verified

The cash receipts journal for Engels Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Correct Answer
verified
Cr.Accounts Receivab...
View Answer

Included with its bank statement a firm may receive a credit memorandum,which could indicate

Correct Answer
verified

Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts.In June,the business purchases $5,000 of goods on account with terms of 2/10,n/30.Select the correct entry to record the payment of the goods within the discount period.

Correct Answer
verified

Of the four categories shown in the form above,which category or categories require journal entries in the firm's records?

Correct Answer
verified

Exam 9: Cash Receipts, Cash Payments, and Banking Procedures

Read each of the following transactions.Determine the accounts to be debited and credited. A)Sold merchandise for $200 in cash plus sales tax of $14. B)Collected $3,400 from credit customers on account. C)Sold merchandise for $1,600 in cash plus sales tax of $112.There was a cash shortage of $6.

Correct AnswerverifiedA)Debit Cash;credit Sales and ...View AnswerShow Answer

To arrive at an accurate balance on a bank reconciliation statement,outstanding checks should be

Correct AnswerverifiedShow Answer

Record the following transactions for the month of June 2016 on page 6 of a cash payments journal.Total,prove,and rule the cash payments journal as of June 30.

Correct AnswerverifiedShow Answer

In a firm that has a good system of internal control,cash receipts are deposited often.

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A check issued for $890 to pay a vendor on account was recorded in the firm's records as $980;the canceled check was properly listed on the bank statement at $890.To arrive at an accurate balance on a bank reconciliation statement,the error should be

Correct AnswerverifiedShow Answer

Record the following transactions for the month of November 2016 on page 8 of a cash receipts journal.Total,prove,and rule the cash receipts journal as of November 30.

Correct AnswerverifiedShow Answer

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. An NSF check from a customer.

Correct AnswerverifiedShow Answer

The process of determining why a difference exists between a firm's records and the bank's records and bringing the two sets of records into balance is known as ____________________ the bank statement.

Correct AnswerverifiedShow Answer

To arrive at an accurate balance on a bank reconciliation statement,deposits in transit should be

Correct AnswerverifiedShow Answer

The cash receipts journal for Carlson Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Correct AnswerverifiedCr.Accounts Receivab...View AnswerShow Answer

Indicate in which section of the Bank Reconciliation Statement the following reconciling items would appear. A check written by Bosley Co.for $168 was mistakenly recorded in the company records as $186.

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Read each of the following transactions.Determine the accounts to be debited and credited. A)Purchased merchandise for $950 in cash. B)Issued a check for $752 to remit sales tax to the state sales tax authority. C)Issued a check for $1,894 to purchase supplies.

Correct AnswerverifiedA)Debit Purchases;cr...View AnswerShow Answer

Which of the following would not be shown as an adjustment to the book balance on a bank reconciliation statement?

Correct AnswerverifiedShow Answer

The cash receipts journal for Engels Company is shown below.Describe how the amounts would be posted to the accounts receivable subsidiary ledger accounts.

Correct AnswerverifiedCr.Accounts Receivab...View AnswerShow Answer

Included with its bank statement a firm may receive a credit memorandum,which could indicate

Correct AnswerverifiedShow Answer

Phones R Us uses a perpetual inventory system when recording its cash payments and cash receipts.In June,the business purchases $5,000 of goods on account with terms of 2/10,n/30.Select the correct entry to record the payment of the goods within the discount period.

Correct AnswerverifiedShow Answer

Of the four categories shown in the form above,which category or categories require journal entries in the firm's records?

Correct AnswerverifiedShow Answer

Correct Answer
verified
A)Debit Cash;credit Sales and ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Cr.Accounts Receivab...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A)Debit Purchases;cr...
View Answer

Correct Answer
verified

Correct Answer
verified
Cr.Accounts Receivab...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified