ACC 210 PS Ch 4 Review Game

Which one of these is NOT an element of the fraud triangle?

• Motive

• Greed

• Opportunity

• Rationalization

Give a preventive control

When going over its Bank Statement, Walt Disney Corp noticed it had written a check for $900 (the correct amount owed to the vendor) but recorded it in the general journal as $850

On Walt Disney Corp's Bank Reconciliation should:

• Add $50 to the Book balance

• Add $50 to the Bank balance

• Deduct $50 from the Book balance

• Deduct $50 on the Bank balance

What is the primary purpose of a bank reconciliation?

• To detect fraud

• To ensure the book balance matches the bank balance

• To calculate interest earned

• To prepare financial statements

Which of the following is a common reason for discrepancies between the bank statement and the company's books?

• Outstanding checks

• Bank errors

• Deposits in transit

• All of the above

In the context of the fraud triangle, which element is most likely to be controlled by management?

• Pressure

• Opportunity

• Rationalization

• Greed

True or False: When the company makes an error, the company should correct for this error on the bank side of the reconciliation.

• TRUE

• FALSE

Which of the following items would cause the balance of the cash in the bank statement to be greater than the balance of cash in the accounting records?

• The company wrote checks that have not cleared the bank

• The company purchased supplies using a debit card

• The company has cash receipts that have not been deposited in the bank

• The company deposited a customer check that was found by the bank to have insufficient funds

What is the effect of outstanding deposits on a bank reconciliation?

• They increase the book balance

• They decrease the bank balance

• They increase the bank balance

• They have no effect on the reconciliation

True or False: Bank service charges should be added to the book balance during reconciliation.

• TRUE

• FALSE