ACCT 1A – Quiz Ch 8

Which of the following reflects a weak internal control system? a. All employees must take their vacations. b. All employees are well supervised. c. A single employee is responsible for collecting and recording cash. d. A single employee is responsible for comparing a receiving report to an invoice.

The cash account in the company's ledger is a(n) a. asset with a normal credit balance b. liability with a normal credit balance c. asset with a normal debit balance d. liability with a normal debit balance

The debit balance in Cash Short and Over at the end of an accounting period is reported as a. an asset on the balance sheet b. income on the income statement c. an expense on the income statement d. a liability on the balance sheet

A bank reconciliation should be prepared periodically because a. The bank must make sure that its records are correct. b. the company's records and the bank's records are in agreement c. the bank has not recorded all of its transactions d. any differences between the company's records and the bank's records should be determined, and any errors made by either party should be discovered and corrected

Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts? a. debit Cash; credit Accounts Payable b. debit Miscellaneous Administrative Expense; credit Cash c. debit Cash; credit Other Income d. debit Accounts Payable; credit Cash

Receipts from cash sales of $3,200 were recorded incorrectly in the cash receipts journal as $2,300. This item would be included on the bank reconciliation as a(n) a. deduction from the balance per company's records b. addition to the balance per company's records c. deduction from the balance per bank statement d. addition to the balance per bank statement

Accompanying the bank statement was a credit memo for a short-term note collected by the bank for the customer. What entry is required in the company's accounts? a. debit Accounts Receivable; credit Cash b. debit Cash; credit Miscellaneous Income c. debit Notes Receivable; credit Cash d. debit Cash; credit Notes Receivable and Interest Revenue

What entry is required in the company's accounts to record outstanding checks? a. debit Cash; credit Accounts Receivable b. debit Cash; credit Accounts Payable c. debit Accounts Receivable; credit Cash d. no entry required

The amount of cash to be reported on the balance sheet at June 30 is the a. balance as of June 30 on the bank statement b. adjusted balance appearing in the bank reconciliation for June 30 c. total of the Cash column in the cash receipts journal as of June 30 d. total of the Cash column in the cash payments journal as of June 30

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30. Cash balance per books, September 30 $2,750 Deposits in transit 200 Notes receivable and interest collected by bank 630 Bank charge for check printing 50 Outstanding checks 1,250 NSF check 290 a. $1,590 b. $3,040 c. $3,690 d. $5,130