Cash-1

Outstanding checks should be -
1. Deducted from the bank balance
2. Added to the bank balance
3. Deducted from the book balance
4. Added to the book balance
Deposits in Transit should be -
1. Added to the bank balance
2. Deducted from the bank balance
3. Added to the book balance
4. Deducted from the book balance
Bank Service Charges should be -
1. Deducted from the book balance
2. Added to the book balance
3. Deducted from the bank balance
4. Added to the bank balance
Credit Card Fees listed on the bank statement but not yet recorded in the books should be -
1. Deducted from the book balance
2. Added to the book balance
3. Deducted from the bank balance
4. Added to the bank balance
A customers returned check (NSF) deducted by the bank but not in the books should be -
1. Deducted from the book balance
2. Added to the book balance
3. Deducted from the bank balance
4. Added to the bank balance
Interest credited to the bank account but not recorded in the books should be -
1. Added to the book balance
2. Deducted from the book balance
3. Added to the bank balance
4. Deducted from the bank balance
Check printing fees deducted by the bank should be -
1. Deducted from the book balance
2. Added to the book balance
3. Deducted from the bank balance
4. Added to the bank balance
A check issued to a supplier was erroneously recorded in the books as $45 instead of the correct amout of $54 that was deducted by the bank -
1. Deduct $9 from the book balance
2. Add $9 to the book balance
3. Add $9 to the bank balance
4. Deduct $9 from the bank balance
A deposit of $545 was mistakeny not recorded in the books but was properly recorded by the bank -
1. Add $545 to book balance
2. Deduct $545 from book balance
3. Add $545 to bank balance
4. Deduct $545 from bank balance
Checks that have been written by a business but that have not yet been posted to the bank account are called Outstanding Checks.
1. True
2. False
Deposits recorded in the books of a business but that have not yet been recorded by the bank are formally called -
1. Deposits In Transit
2. Pending Deposits
3. Unknown Deposits
4. Later Deposits
While reconciling the month, the only reconciling item was outstanding checks of $1,500. The bank statement's balance was $3,500. The book balance is -
1. $2,000
2. $5,000
3. $2,500
4. None of the listed answers is correct
Bank fees are recorded in what Special Journal ?
1. General Journal
2. Cash Disbursements Journal
3. Cash Receipts Journal
4. None of the listed answers is correct
Bank reconciliations should normally be prepared -
1. Monthly
2. Quarterly
3. Annually
4. Semi-Annually

Cash-1

Quiz