Bank Reconciliation - Simulation

In which account are post-dated checks received classified?

• Receivables.

• Prepaid expenses.

• Cash.

• Payables.

Bank overdrafts generally should be

• reported as a deduction from the current asset section.

• reported as a deduction from cash.

• netted against cash and a net cash amount reported.

• reported as a current liability.

The accounts receivable turnover ratio measures the

• gross sales by ending net receivables.

• gross sales by average net receivables.

• net sales by ending net receivables.

• net sales by average net receivables.

The accounts receivable turnover ratio is computed by dividing

• gross sales by ending net receivables.

• gross sales by average net receivables.

• net sales by ending net receivables.

• net sales by average net receivables.

What is a possible reason for accounts receivable turnover to increase from one year to the next year

• Decreased credit sales during a recession

• Write-off uncollectible receivables.

• Granting credit to customers with lower credit quality.

• Improved collection process.

Which of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation?

• Bank service charge.

• Deposit in transit.

• Bank interest.

• Chargeback for NSF check.

The journal entries for a bank reconciliation

• are taken from the "balance per bank" section only.

• may include a debit to Office Expense for bank service charges.

• may include a credit to Accounts Receivable for an NSF check.

• may include a debit to Accounts Payable for an NSF check.

When preparing a bank reconciliation, bank credits are

• added to the bank statement balance.

• deducted from the bank statement balance.

• added to the balance per books.

• deducted from the balance per books.

Remington Corporation had accounts receivable of $100,000 at 1/1. The only transactions affecting accounts receivable were sales of $600,000 and cash collections of $550,000. The accounts receivable turnover is

• 4.0.

• 4.4.

• 4.8.

• 6.0.

Laventhol Corporation had accounts receivable of $100,000 at 1/1. The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. The accounts receivable turnover is

• 6.0.

• 6.6.

• 7.2.

• 9.0.