Question 1 (5 points) The drawee is the __________. Question 1 options: person who writes the check bank that drawer has an account with the person to whom the check is payable the person who reconciles the account Question 2 (5 points) A nonsufficient funds check was returned to your company. How does the bank treat this on your bank statement? Question 2 options: It is added to the bank balance. It is shown as a debit memo. It is shown as a credit memo. None of these answers are correct. Question 3 (5 points) Which of the following bank reconciliation items would be reflected in a journal entry? Question 3 options: error made by the bank outstanding checks bank service charges deposit in transit Question 4 (5 points) A restrictive endorsement on a check __________. Question 4 options: can be further endorsed by someone else is the safest endorsement for businesses permits the bank to use its best judgment None of these answers are correct. Question 5 (5 points) The bank statement shows __________. Question 5 options: the beginning bank balance of the cash at the start of the month the checks the bank has paid and any deposits received any other charges or additions to the bank balance All of these answers are correct. Question 6 (5 points) From the bank reconciliation no entry was recorded for deposits in transit. This would cause __________. Question 6 options: assets to be overstated assets to be understated no impact since deposits in transit are already included in the balance per books no impact since deposits are not recorded on the books Question 7 (5 points) Endorsing a check __________. Question 7 options: guarantees payment transfers the right to deposit or transfer cash cancels the transaction All of these answers are correct. Question 8 (5 points) Which item(s. will require a journal entry to update the balance in the Cash account? Question 8 options: checks outstanding and deposits in transit bank service charges, note collected by the bank, and deposits in transit bank service charges, note collected by the bank, and error made by Accounting Services None of these answers are correct. Question 9 (5 points) Determine the adjusted cash balance per bank for Santa’s Packaging on November 30, from the following information. 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 Question 9 options: $1,250 $1,100 $1,550 $1,350 Question 10 (5 points) How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? Question 10 options: They would be added to the balance of the bank statement. They would be subtracted from the balance of the bank statement. They would be added to t
he balance per books. They would be ignored. Question 11 (5 points) If the written amount on the check does not match the amount expressed in figures, the bank may __________. Question 11 options: pay the amount written in words return the check unpaid contact the drawer to see what was meant All of these answers are correct. Question 12 (5 points) The check is written and signed by the __________. Question 12 options: drawer drawee payee payer Question 13 (5 points) Advantages of on-line banking include __________. Question 13 options: convenience transaction speed effectiveness All of the above answers are correct. Question 14 (5 points) Which item should be added to the company’s book balance during the bank reconciliation? Question 14 options: deposit in transit check outstanding bank service charge note collected by the bank Question 15 (5 points) Calculate, from the following information the adjusted cash balance at the end of April. Bank statement ending cash balance $2,000 General ledger cash balance ending 3,250 Bank monthly service charge 45 Deposits in transit 2,500 Outstanding checks 1,500 NSF check returned with bank statement 205 Question 15 options: $3,000 $4,250 $4,000 $5,500 Question 16 (5 points) Scotch Services received a credit memorandum from the bank. During the bank reconciliation they should __________. Question 16 options: increase their cash account on the company’s books decrease their cash account on the company’s books increase the ending cash balance on the bank statement decrease the ending cash balance on the bank statement Question 17 (5 points) On a bank reconciliation, deposits added to the bank side are called __________. Question 17 options: deposits in transit late deposits deposits on hold outstanding deposits Question 18 (5 points) Company policy for internal control should include all of the following EXCEPT for what? Question 18 options: Employees will be rotated. Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. The owner (or responsible employee. signs all checks after receiving authorization to pay from the departments concerned. At time of payment, all supporting invoices or documents will be stamped “paid.” Question 19 (5 points) The bank statement included bank charges. On the bank reconciliation, the item is __________. Question 19 options: an addition to the balance per company books an addition to the balance per bank statement a deduction from the balance per bank statement a deduction from the balance per company books Question 20 (5 points) A full endorsement on a check __________. Question 20 options: is the same as a blank endorsement can be endorsed only by the person or company named in the original endorsement is the safest endorsement for businesses does none of the above