Chapter 5 1 Reconcile The Bank Statement With The Check

Exam

Name___________________________________

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Answer the question or give an explanation.

1)

Describe at least four services a bank can provide to its business checking account

customers.

1)

2)

List some advantages and disadvantages for a customer to use credit cards.

2)

3)

List some advantages and disadvantages for a merchant to accept credit cards.

3)

4)

Describe the differences between keeping a check stub record of checks written versus a

check register.

4)

5)

Name four posting or recording errors that can cause an unbalanced checking account.

5)

6)

Describe the effect on merchants and customers if credit card usage suddenly stopped.

6)

7)

List and explain at least six parts of a check. Draw a sketch showing where the parts

appear.

7)

8)

Explain the factors that determine the bank service charges on a business checking account.

8)

9)

List and explain some differences between personal and business checking accounts.

9)

10)

Describe in your own words how to reconcile a checking account.

10)

1

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Find the final balance in the check register.

11)

CHECK

NO. CHECK ISSUED TO AMOUNT

OF CHECK AMOUNT OF

DEPOSIT BALANCE

BALANCE BROUGHT FORWARD 1783.87

1514 DynaPro Tech 323.71

1515 Rita’s Caterers 463.74

Deposit 367.78

11)

A)

$628.64

B)

$1827.94

C)

$1364.20

D)

$2203.54

Use the table to find the monthly checking–account service charge for the account.

12)

DynaPro Golf, 40 checks, average balance $1046

12)

A)

$15.50

B)

$9.00

C)

$13.00

D)

$20.00

D)

2

D)

Find the balance forward for the check stub.

13)

Date To Amount Bal. Bro’t.

For’d Deposits

Mar. 10 CES Electric $80.96 $1398.21 $975.15

Bal. Bro’t. For’d.

Am’t. Deposited

Total

Am’t. this Check

Balance For’d.

13)

A)

$2454.32

B)

$2292.40

C)

$342.10

D)

$504.02

Find the final balance in the check register.

14)

CHECK

NO. CHECK ISSUED TO AMOUNT

OF CHECK AMOUNT OF

DEPOSIT BALANCE

BALANCE BROUGHT FORWARD 3808.51

1535 City Plumbing 191.16

1536 MCI Telephone 294.76

Deposit 444.46

1537 Ajax Lumber 357.41

14)

A)

$3409.64

B)

$3704.40

C)

$4207.38

D)

$4124.46

15)

CHECK

NO. CHECK ISSUED TO AMOUNT

OF CHECK AMOUNT OF

DEPOSIT BALANCE

BALANCE BROUGHT FORWARD 1936.77

1509 Tech Spray 505.32

1510 TRW Freight 664.65

Deposit 581.42

1511 Harper Group 676.79

Deposit 598.94

15)

A)

$671.43

B)

$1935.02

C)

$1270.37

D)

$2603.17

3

Reconcile the bank statement with the check register balance. Find the current balance.

16)

Balance from bank statement $8782.12

Checks outstanding $830.70

$537.53

$791.79

$173.87

$333.98

Deposits not yet recorded $198.51

$713.83

$329.04

Bank charge $27.41

Interest credit $16.74

Checkbook balance $7366.30

Current balance

16)

A)

$7344.96

B)

$7355.63

C)

$7366.30

D)

$8771.45

Find the balance forward for the check stub.

17)

Date To Amount Bal. Bro’t.

For’d Deposits

Mar. 10 Valu Hardware $182.97 $3009.93 $86.02

Bal. Bro’t. For’d.

Am’t. Deposited

Total

Am’t. this Check

Balance For’d.

17)

A)

$2912.98

B)

$2740.94

C)

$3106.88

D)

$3278.92

4

Use the table to find the monthly checking–account service charge for the account.

18)

Northwest Molded, 84 checks, average balance $6362

18)

A)

$5.00

B)

$8.40

C)

$0

D)

$13.40

Find the balance forward for the check stub.

19)

Date To Amount Bal. Bro’t.

For’d Deposits

Dec. 7 Sam’s Hardware $101.38 $4352.05 

Bal. Bro’t. For’d.

Am’t. Deposited

Total

Am’t. this Check

Balance For’d.

19)

A)

$4250.67

B)

$101.38

C)

$4352.05

D)

$4453.43

5

From the following credit card transactions, find the credit–card sales less refunds. Then find the amount of the charge at

the statement date.

20)

Cross Town Florists pays a 4% fee.

Sales Refunds

$157.32 $52.98 $27.87

$134.93 $182.02 $43.04

$56.87 $162.79 $20.37

$158.02 $139.16

20)

A)

$1044.09, $41.76

B)

$952.81, $38.11

C)

$942.81, $37.71

D)

$1135.37, $45.41

Reconcile the bank statement with the check register balance. Find the current balance.

21)

Balance from bank statement $1517.05

Checks outstanding $429.98

$297.58

$398.02

Deposits not yet recorded $301.43

Bank charge $7.39

Interest credit $4.44

Checkbook balance $695.85

Current balance

21)

A)

$695.85

B)

$1514.10

C)

$692.90

D)

$689.95

6

Use the table to find the monthly checking–account service charge for the account.

22)

Northwest Molded, 33 checks, average balance $368

22)

A)

$15.30

B)

$8.30

C)

$18.60

D)

$14.10

Reconcile the bank statement with the check register balance. Find the current balance.

23)

Balance from bank statement $4081.20

Checks outstanding $62.93

$316.82

$103.58

$448.37

Deposits not yet recorded $441.15

$344.74

$442.50

Bank charge $7.27

Interest credit $5.34

Checkbook balance $4379.82

Current balance

23)

A)

$4375.96

B)

$4377.89

C)

$4379.82

D)

$4079.27

7

Find the final balance in the check register.

24)

CHECK

NO. CHECK ISSUED TO AMOUNT

OF CHECK AMOUNT OF

DEPOSIT BALANCE

BALANCE BROUGHT FORWARD 754.09

1792 Dr. Morgan 470.46

1793 TWA Airlines 408.33

Deposit 241.64

1794 West Hotel 205.03

Deposit 428.39

24)

A)

–$88.09

B)

$748.63

C)

$1167.88

D)

$340.30

From the following credit card transactions, find the credit–card sales less refunds. Then find the amount of the charge at

the statement date.

25)

Expressway Photo Developers pays a 2%.

Sales Refunds

$5.17 $12.26 $29.11

$25.78 $56.61 $19.35

$37.47 $91.67 $18.19

$73.46 $8.77

25)

A)

$234.54, $4.69

B)

$377.84, $7.56

C)

$311.19, $6.22

D)

$244.54, $4.89

8

Reconcile the bank statement with the check register balance. Find the current balance.

26)

Balance from bank statement $2500.17

Checks outstanding $466.13

$317.07

$134.04

$205.43

$129.20

Deposits not yet recorded $259.17

$97.22

$103.72

Bank charge $2.00

Interest credit $2.63

Checkbook balance $1707.78

Current balance

26)

A)

$1707.78

B)

$2500.80

C)

$1709.04

D)

$1708.41

Find the final balance in the check register.

27)

CHECK

NO. CHECK ISSUED TO AMOUNT

OF CHECK AMOUNT OF

DEPOSIT BALANCE

BALANCE BROUGHT FORWARD 8450.26

1890 Colman Mfg 831.02

1891 Bank One 877.49

Deposit 686.85

1892 Midtown Electric 855.73

Deposit 966.81

1893 Tech Spray 852.25

27)

A)

$6687.43

B)

$5720.62

C)

$10,213.09

D)

$8417.17

9

From the following credit card transactions, find the credit–card sales less refunds. Then find the amount of the charge at

the statement date.

28)

Sara’s Olde Curiosity Shop pays a 5% fee.

Sales Refunds

$34.62 $74.44 $28.75

$46.95 $85.24 $13.93

$68.45 $104.39 $21.29

$95.64 $28.15

28)

A)

$473.91, $23.70

B)

$463.91, $23.20

C)

$601.85, $30.09

D)

$537.88, $26.89

29)

Bob’s Bicycle Shop pays a 3% fee.

Sales Refunds

$165.63 $193.26 $32.03

$154.71 $37.57 $23.51

$148.87 $125.31 $38.17

$99.31 $44.15

29)

A)

$968.81, $29.06

B)

$875.10, $26.25

C)

$1062.52, $31.88

D)

$865.10, $25.95

Use the table to find the monthly checking–account service charge for the account.

30)

Grand Optical, 49 checks, average balance $3544

30)

A)

$9.90

B)

$5.00

C)

$17.30

D)

$14.80

10

Find the balance forward for the check stub.

31)

Date To Amount Bal. Bro’t.

For’d Deposits

Oct. 15 DynaPro Tech $648.85 $1882.88 $706.58

$666.19

Bal. Bro’t. For’d.

Am’t. Deposited

Total

Am’t. this Check

Balance For’d.

31)

A)

$2491.34

B)

$1940.61

C)

$1900.22

D)

$2606.80

Reconcile the bank statement with the check register balance. Find the current balance.

32)

Balance from bank statement $1888.14

Checks outstanding $90.61

$177.19

$199.97

$346.52

Deposits not yet recorded $362.82

$453.52

Bank charge $4.94

Interest credit $2.48

Checkbook balance $1892.65

Current balance

32)

A)

$1887.73

B)

$1890.19

C)

$1885.68

D)

$1892.65

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Answer Key

Testname: C5

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