FABM2 Final Examination

Which type of bank account allows numerous withdrawals and unlimited deposits?

• Checking or Current Account

• Time deposit

• Debit account

• Credit account

What is a bank check?

• The person/entity who makes the check

• A check received from a customer on or before the balance sheet date

• A check dated on or before the balance sheet date

• An order written by a depositor instructing the bank to pay a specific amount to a recipient

What is one of the criteria that needs to be met before a check can be converted into cash?

• The check was received from a customer after the balance sheet date

• The check was issued by the drawee

• The check date is dated on or before the balance sheet date

• The check date is dated after the balance sheet date

What does a bank statement show at the end of every month?

• The process of preparing a check

• The specific minimum balance required for each type of bank account

• The movement of the account including withdrawals, deposits, and balance after every transaction

• All the withdrawals and deposits of other customers at the bank

What is the function of the Journal?

• Preparing financial statements

• Posting (Classifying)

• Reconciling bank statements

• Journalizing (Initial Recording)

Which type of journal is used to record sales on account?

• General Journal

• Cash Receipts Journal

• Cash Disbursement Journal

• Special Journal

What does the left side of an account represent?

• Time deposit

• Debit side

• Savings account

• Credit side

What does the General Ledger contain?

• Breakdown of controlling accounts in the general ledger

• All accounts appearing in the trial balance

• Details of sales transactions

• Details of purchase transactions

What are the T-Account’s three parts?

• Debit, credit, balance

• Initial recording, classifying, summarizing

• Assets, liabilities, equity

• Dr, Cr, Jn

Where are transactions that cannot be recorded in special journals can be recorded?

• In the Cash Receipts Journal

• In the General Ledger

• In the Cash Disbursement Journal

• In the Purchase Journal