Accounting - Cash Controls

The bank listed a $400 deposit as $4,000. Which of the following is how this error would be listed on a bank reconciliation?

• Bank service charges

• Adjusted bank balance

• C. Bank error which overstated the balance

• Bank error which understated the balance

Which of the following refers to money being exchanged between businesses and customers electronically?

• Automatic fund deposit

• Electronic cash withdrawal

• Automatic cash withdrawal

• Electronic funds transfer

A petty cash fund was initially established with $200.

A gas purchase of $25,

a paper purchase of $32

and a miscellaneous expense of $15 were made.

What would be the journal entry to replenish the fund?

• Debit: Cash ($72); Credit: Petty Cash ($72)

• Debit: Petty Cash ($200); Credit: Cash ($200)

• Debit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15); Credit: Cash ($72)

• Debit: Cash ($72); Credit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15)

Which of the following refers to the process of verifying the bank statement amounts match company cash amounts?

• Bank adjustment

• Bank reconciliation

• Statement revision

• Company cash reconciliation

Which of the following accounts would be credited to set up a petty cash fund?

• Cash

• Petty cash

• Withdrawals

• Miscellaneous expense

Which of the following is how interest income is handled on a bank reconciliation?

• Added to the balance per bank

• Added to the balance per book

• Subtracted from the balance per bank

• Subtracted from the balance per book

Which of the following is how deposits in transit are handled on a bank reconciliation?

• Added to the balance per bank

• Added to the balance per book

• Subtracted from the balance per bank

• Subtracted from the balance per book

Which of the following refers to transactions which require two people in order to be completed?

• Dual control

• Dual process

• Dual comparison

• Employee transactions

Which of the following refers to taking money out of a bank?

• Controlling

• Assisting

• Depositing

• Withdrawing

A deposit was made on November 29 and the bank statement was printed on November 28. How would the deposit be listed on the bank reconciliation?

• Deposits in transit

• Outstanding checks

• Bank service charges

• Bank error which understated the balance