FUNDA 2 - 2ND DAY REVIEW

In a bank statement, which element shows the decrease in the balance of the account during the period?

• Running Balance

• Debit

• Credit

• None of the above

For partnerships, corporations, or cooperatives, it is good control practice to require how many signatories are in a check?

• At least one

• At least two

• At least three

• At least four

A check that is presented to be cashed or deposited at a bank six months or more after the date it was written.

• Antedated check

• Expired check

• Postdated check

• Stale check

It is a small plastic card issued by a bank allowing the cardholder to purchase goods or services on credit.

• ATM card

• Credit card

• Passbook

• Passport

On preparing bank reconciliation, a credit memorandum indicating collections is

• Added to the book balance of cash

• Deducted to the book balance of cash

• Added to the bank statement balance

• Deducted to bank statement balance

A payment card issued by a bank that enables a customer to access an automated teller machine in order to perform transactions such as deposits and cash withdrawals

• ATM card

• Debit card

• Credit card

• Passbook

On preparing bank reconciliation, interest credited to bank account is

• Added to the book balance of cash

• Deducted to the book balance of cash

• Added to the bank statement balance

• Deducted to the bank statement balance

Bank stumbled by posting another company's credit memo to your company's bank account, the amount is to be

• Added to the book balance of cash

• Deducted to the book balance of cash

• Added to the bank statement balance

• Deducted to the bank statement balance

Which of the following must be added to the ledger's cash balance when preparing a bank reconciliation?

• Note received and collected by bank in favor of the depositor

• NSF customer check

• Service charge

• Erroneous bank debit

Which of the following is not considered a purpose of taxation?

• to regulate inflation

• to make the poor poorer

• to minimize the adverse effects of certain activities

• to have an equitable distribution of wealth among inhabitants