105.
McGregor Company allows customers to pay with credit cards. The credit card company
charges McGregor 3% of the sale. When a customer uses a credit card to pay McGregor
$200 for services provided, McGregor would:
106.
A customer purchased a $2,000 item at ApplianceWorld, paying with a credit card.
ApplianceWorld is charged a 2% fee by the credit card company. When recording this sale,
ApplianceWorld would:
107.
Which of the following would NOT represent good controls over cash disbursements?
108.
Which of the following would NOT represent good controls over cash disbursements?
109.
A bank reconciliation reconciles the bank statement with the company’s:
110.
What is the primary purpose of a bank reconciliation?
111.
Which of the following items would cause the balance of cash in the bank statement
not
to
equal the balance of cash in the accounting records?
112.
Which of the following items would cause the balance of cash in the bank statement
not
to
equal the balance of cash in the accounting records?
113.
Which of the following items would cause the balance of cash in the bank statement to be
greater than the balance of cash in the accounting records?
114.
Which of the following is NOT a reason why a bank reconciliation is necessary?
115.
A good internal control system would require that the employee who handles cash must
not be involved in:
116.
Which of the following is correct with respect to a bank reconciliation?
117.
After preparing the bank reconciliation, an NSF check would result in which of the
following when recording the adjustment to the company’s cash balance?
118.
The following information pertains to Sooner Company’s cash balance and bank
reconciliation as of August 31:
Company balance before
reconciliation
$5,000
Checks outstanding
$2,500
Notes collected by the bank
$2,200
Service fee
$50
Deposits outstanding
$2,000
What is the correct cash balance for Sooner Company?
119.
When preparing a bank reconciliation, a deposit outstanding would be:
120.
Regarding a bank reconciliation, which one of the following is an item recorded by the
company but not by the bank?
121.
Which of the following would NOT need to be accounted for in a bank reconciliation?
122.
On May 31, Money Corporation’s Cash account showed a balance of $10,000 before the
bank reconciliation was prepared. After examining the May bank statement and items
included with it, the company’s accountant found the following items:
Checks outstanding
$2,250
Deposits outstanding
1,900
NSF check
100
Service fees
40
Error: Money Corp. wrote a check for $30 but recorded it incorrectly for $300.
What is the amount of cash that should be reported in the company’s balance sheet as of
May 31?
123.
Cash transactions recorded by the bank but not yet recorded by the company include all of
the following except
124.
The following information was taken from the bank reconciliation for Mooner Sooner Inc.
at the end of the year:
Bank balance: $8,000
Checks outstanding: $5,800
Note collected by the bank: $1,500
Service fee: $20
Deposits outstanding: $4,000
NSF check (bad check) returned for $300
What is the correct cash balance that should be reported in Mooner Sooner’s balance
sheet at the end of the year?
125.
Cash transactions that have been recorded by the company but not the bank include:
126.
After preparing a bank reconciliation, the collection of a note by the bank on a company’s
behalf would be recorded with a:
127.
After preparing a bank reconciliation, the service fee charged by the bank would be
recorded with a:
128.
After preparing a bank reconciliation, a check outstanding for the payment of advertising
would be recorded with a:
129.
The following data were obtained from the bank statement and from the process of
reconciling it:
Bank service charges = $20
Deposit outstanding = $150
Interest earned on the bank account = $10
Checks outstanding = $400
Which items should be deducted from and added to the bank balance in completing the
reconciliation?
130.
The balance in the Colt Company’s Cash account on August 31 was $19,700, before the
bank reconciliation was prepared. After examining the August bank statement and items
included with it, the company’s accountant found:
Checks outstanding
$4,300
NSF check
140
Note collected by bank for the Colt
Company
1,200
Deposits outstanding
1,800
Bank service fees
60
What is the amount of cash that should be reported in the balance sheet as of August 31?
131.
The balance shown in the August bank statement of Colt Company was $23,200. After
examining the August bank statement and items included with it, the company’s
accountant found:
Checks outstanding
$4,300
NSF check
140
Note collected by bank for the Colt
Company
1,200
Deposits outstanding
1,800
Bank service fees
60
What is the amount of cash that should be reported in the balance sheet as of August 31?
132.
A company-issued debit card or credit card is often referred to as a:
133.
A minor amount of cash kept on hand to pay for small purchases is referred to as a:
134.
At the end of the month, employees have made the following expenditures from the petty
cash fund and with company-issued credit cards. None of these transactions has been
recorded previously.
Supplies (petty cash) = $50
Delivery (petty cash) = $75
Advertising (credit card) = $1,100
Equipment (credit card) = $4,200
Accounting for these employee purchases would include a:
135.
At the end of the month, employees have made the following expenditures from the petty
cash fund and with company-issued credit cards. None of these transactions has been
recorded previously.
Supplies (petty cash) = $50
Delivery (petty cash) = $75
Advertising (credit card) = $1,100
Equipment (credit card) = $4,200
Accounting for these employee purchases would include a:
136.
Which of the following is NOT involved in the replenishment of the petty cash fund?
137.
At the time a $400 petty cash fund is being replenished, the company’s accountant finds
vouchers totaling $350 and petty cash of $50. The vouchers include: postage, $100;
business lunches, $150; delivery fees, $75; and office supplies, $25. Which of the following
is not recorded when recognizing expenditures from the petty cash fund?
138.
Which of the following is correct regarding a petty cash fund?
139.
When accounting for employee purchases, effective internal controls could include which
of the following?
140.
A company’s cash balance is reported in which two financial statements?