intacc

The following are considered bank-reconciling items, except

• c. Bank service charge

• d. Errors committed by the bank

When determining the deposits in transit,

• c. the list of deposits already recorded by the bank shall be compared to the list

  of deposits made by the entity. The deposits that can be traced to the list of deposits made by the entity are considered deposits in transit.

• d. the list of deposits already recorded by the bank shall be compared to the list of deposits made by the entity. The deposits that cannot be traced to the list of deposits made by the entity are considered deposits in transit.

Bank-reconciling items that have a net increasing effect to the bank statement balance to arrive at the adjusted cash in bank include the following, except

• c. Check of P100,000 but was recorded by the bank as P1,000,000.

• d. Deposit of P50,000 but was recorded by the bank as P500,000.

The following are considered bank-reconciling items, except

• a. Certified checks

• b. Deposit of one depositor recorded to another depositor's bank account.

Given the following statements below, determine which of them is/are true

l. Debit memos have already reduced the bank statement balance but not the book balance.

ll. Credit memos have already increased the book balance but not the bank statement balance

• C. Both I and II

• d. Neither

Bank-reconciling items that have a net decreasing effect to the bank statement balance to arrive at the adjusted cash in bank include the following, except

• c. Check of the entity but was deducted from the account of another entity.

• d. Deposit of another entity but was recorded by the bank in the entity's account.

The following are considered as credit memos, except

• a. Collections from account customers received directly by the entity.

• b. Collections from account customers who paid the entity's partner bank.

Given the following statements below, determine which of them is/are considered as debit memo:

l. Proceeds from the bank loan.

II. Direct deduction of maturing bank loan.

• a. I only

• b. Il only

In the absence of errors, which of the following is/are true in the absence of errors?

• a. If the total amount of debit memos is higher than the total amount of credit memos, then book balance is higher than the adjusted cash in bank balance.

• b. If the total amount of debit memos is lower than the total amount of credit memos, then book balance is higher than the adjusted cash in bank balance.

An inexperienced accountant proposed the following bank reconciliation procedures in determining the adjusted cash in bank balance:

l. Debit memos are added to the book balance.

II. Credit memos are deducted from the book balance

• c. Both I and II are correct

• d. Neither I nor II is correct