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Accounting - Cash Controls

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

The bank listed a $400 deposit as $4,000. Which of the following is how this error would be listed on a bank reconciliation?

a)

Bank service charges

b)

Adjusted bank balance

c)

C. Bank error which overstated the balance

d)

Bank error which understated the balance

2.

Which of the following refers to money being exchanged between businesses and customers electronically?

a)

Automatic fund deposit

b)

Electronic cash withdrawal

c)

Automatic cash withdrawal

d)

Electronic funds transfer

3.

A petty cash fund was initially established with $200.

A gas purchase of $25,

a paper purchase of $32

and a miscellaneous expense of $15 were made.

What would be the journal entry to replenish the fund?

a)

Debit: Cash ($72); Credit: Petty Cash ($72)

b)

Debit: Petty Cash ($200); Credit: Cash ($200)

c)

Debit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15); Credit: Cash ($72)

d)

Debit: Cash ($72); Credit: Fuel Expense ($25), Supplies ($32), Misc. Expenses ($15)

4.

Which of the following refers to the process of verifying the bank statement amounts match company cash amounts?

a)

Bank adjustment

b)

Bank reconciliation

c)

Statement revision

d)

Company cash reconciliation

5.

Which of the following accounts would be credited to set up a petty cash fund?

a)

Cash

b)

Petty cash

c)

Withdrawals

d)

Miscellaneous expense

6.

Which of the following is how interest income is handled on a bank reconciliation?

a)

Added to the balance per bank

b)

Added to the balance per book

c)

Subtracted from the balance per bank

d)

Subtracted from the balance per book

7.

Which of the following is how deposits in transit are handled on a bank reconciliation?

a)

Added to the balance per bank

b)

Added to the balance per book

c)

Subtracted from the balance per bank

d)

Subtracted from the balance per book

8.

Which of the following refers to transactions which require two people in order to be completed?

a)

Dual control

b)

Dual process

c)

Dual comparison

d)

Employee transactions

9.

Which of the following refers to taking money out of a bank?

a)

Controlling

b)

Assisting

c)

Depositing

d)

Withdrawing

10.

A deposit was made on November 29 and the bank statement was printed on November 28. How would the deposit be listed on the bank reconciliation?

a)

Deposits in transit

b)

Outstanding checks

c)

Bank service charges

d)

Bank error which understated the balance