Accounting Ch 11 QQ

You work at a grocery store and have rung up a customer’s purchases. The total on the cash register tape reads $200, and the customer complains that there is obviously an error in the total. You find an overcharge caused by inputting the cost for fish fillets at $10 ten times instead of one time. How much must you subtract from the $200 total to get the correct total? What is the new total?

Which of these is not an internal procedure designed to protect cash?

• Making any necessary payments using cash

• Limiting the number of people who handle cash

• Using a cash register and a safe

• Taking cash receipts to the bank frequently

The first step in balancing a checkbook is

• subtracting fees on the bank statement from the checkbook balance.

• comparing checks in the check record with those on the statement.

• adding interest earned to the checkbook balance.

• adding recent deposits to the bank statement balance.

If a check is cancelled, it means that it

• was written in error and has been voided

• has been paid to the payee

• has not yet been posted by the bank

• was returned by the bank for nonsufficient funds

The bank statement shows a checking account balance of $5,500. There are outstanding checks totaling $600, an outstanding deposit of $400, and a bank service charge of $15. The cash account balance should be

• $5,300.

• $5,700

• $5,285

• none of the above

Bank service charges should be journalized before reconciling the bank statement.

• True

• False

Name all the items needed to perform the bank reconciliation.

How often should a business prove cash?

• regularly—daily

• weekly

• monthly

• all answers

For what period of time is a bank statement prepared?

• usually a month

• usually bi-monthly

• usually a week

What is the process that determines any differences between the bank statement and the checkbook?

• adding to the bank statement

• reconciling the bank statement