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- 1. Multiple Choice
A bank statement
allows a depositor know the financial position of the bank as of a certain date.
is a credit reference letter written by the depositor's bank.
is a bill from the bank for services rendered.
shows the activity which increased or decreased the depositor's account balance.
- 2. Multiple Choice
A check returned by the bank marked "NSF" means
not satisfactorily filled-out.
not sufficient funds.
no signature found.
no service fee.
- 3. Multiple Choice
In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information.
Balance per bank statement, 4/30/20 $76,800
NSF check returned with 4/30/20 bank statement 940
Deposits in transit, 4/30/20 9,000
Outstanding checks, 4/30/20 9,300
Bank service charges for April 60
What should be the adjusted cash balance at April 30, 2020?
$75,100.
$75,800.
$75,920.
$76,500.
- 4. Multiple Choice
The cash account shows a balance of $85,000 before reconciliation. The bank statement does not include a deposit of $5,000 made on the last day of the month. The bank statement shows a collection by the bank of $2,400 and a customer’s check for $680 was returned because it was NSF. A customer’s check for $900 was recorded on the books as $1,080, and a check written for $138 was recorded as $183. The correct balance in the cash account was
$86,540.
$86,585.
$87,400.
$95,350.
- 5. Multiple Choice
The cash account shows a balance of $42,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $4,960 and a customer’s check for $1,100 was returned because it was NSF. A customer’s check for $1,380 was recorded on the books as $1,830, and a check written for $318 was recorded as $381. The correct balance in the cash account was
$45,347.
$45,473.
$46,573.
$54,673
- 6. Multiple Choice
If the month-end bank statement shows a balance of $75,000, outstanding checks are $54,000, a deposit of $15,000 was in transit at month end, and a check for $4,000 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
$37,000.
.
$40,000.
$75,000.
$118,000.
- 7. Multiple Choice
In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information.
Balance per bank statement, 4/30/20 $40,290
NSF check returned with 4/30/20 bank statement 1,450
Deposits in transit, 4/30/20 10,200
Outstanding checks, 4/30/20 15,060
Bank service charges for April 60
What should be the adjusted cash balance at April 30, 2020?
$33,920.
$33,980.
$35,370.
$35,430.
- 8. Multiple Choice
In preparing its August 31, 2020 bank reconciliation, Oakley Corp. has available the following information:
Balance per bank statement, 8/31/20 $65,490
Deposit in transit, 8/31/20 10,170
Return of customer’s check not sufficient funds, 8/30/20 1,800
Outstanding checks, 8/31/20 5,820
Bank service charges for August 350
At August 31, 2020, Oakley’s adjusted cash balance is
$59,670.
$59,320.
$69,840.
$61,140.
- 9. Multiple Choice
On a bank reconciliation, deposits in transit are
added to the bank balance.
deducted from the bank balance.
added to the book balance.
deducted from the book balance.
- 10. Multiple Choice
A bank reconciliation should be prepared
whenever the bank refuses to lend the company money.
when an employee is suspected of fraud.
To explain any difference between the depositor's balance per books and the balance per bank.
by the person who is authorized to sign checks.
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