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WorksheetsACCTG 26 Theory and Problem on Cash, Bank Recon and PCF
Total questions: 25
Worksheet time: 22mins
A company is preparing the bank reconciliation for the month of May. The cash records indicate that checks amounting to P 15,000 were written during May and deposits were P 21, 000. The bank reconciliation of April showed outstanding checks of P 1,000 and deposits in transit of P 2,000. The bank statement for May showed that the total checks cleared amounted to P 14,500. Therefore, outstanding checks at the end of May amounted to_____
P 1,500
P 500
P 15,000
P 14,500
In order to be classified as cash equivalents, an investment must have a maturity date of;
less than six months
three to six months
six to twelve months
three months or less
Cash control systems are the methods and procedures used to;
ensure that current obligations are met
ensure that excess cash does not exist
ensure the safeguarding of cash
ensure that unsued cash is invested
Which of the following is classified as current liability on the Statement of Financial Position?
bank overdrafts
post-dated checks
customer non-sufficient fund checks
travel advances
Which of the following is a key element of internal control over cash payments?
periodically reconciling the cash account balance on the company's books to the bank statement balance
making daily bank deposits
requiring that all petty cash fund vouchers be approved by two signatures
authorizing and verifying the petty cash fund for P 1,000 of various minor expenditures would include a;
The entry to replenish the petty cash fund for P 1,000 of various minor expenditures would include a;
debit to petty cash
debit to cash
credit to petty cash
credit to cash
Compensating balance agreements that do not legally restrict the amount of funds shown on the Statement of Financial Position should:
be reported in the current asset section
be reported in the L-T investment section
be reported in the other asset section
be reported in the footnotes
Which of the following reconciling items would require an adjusting journal entry on the company's books?
outstanding checks
non-sufficient fund checks
deposit in transit
cash on hand
La Mesa Tables Co. uses a four-column bank reconciliation. the bank statement reports May payments of P 13,150, including service charges of P 200. At the beginning of May, there were P 900 of checks outstading. At the end of May, there were P 1,200 of checks outstanding. Before recording the bak service charges, La Mesa Tables must have recorded May payments of
P 13,250
P 12,650
P 13,050
P 13,650
A Company received its monthly bak statement, which showed an ending balance of P 150,000. Adjustements on the bank reconcilliation included a deposit in transit, P 20,000; outstanding checks, P 30,000; "NSF" check for P 5,000; bank service charge of P 300; proceeds of a customer's noted collected by the bank of P 40,000. What was the correct cash balance shown on the Statement of Financial Position?
P 134,700
P 135,000
P 140,000
P 174,700
A bank service charge of P 25.
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
The credit of P 275 on the bank statement for semiannual interest collected by the bank for the company on pledged bonds.
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
The charge of P 122 for “NSF” check
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
The checks outstanding as of June 31, totaling P 5,020
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
The P 625 deposit not shown in the bank statement.
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
The P 4,500 proceeds of a bank loan(reflected on both the books and the bank statement
Deduct it from the bank statement balance
Add it to the bank statement balance
Exclude it from the reconciliation
Add it to the checkbook balance
Deduct from the checkbook value.
Customer’s check returned by bank marked NSF.
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
Proceeds from a customer’s note, principal amount P 900 collected by bank collection fee of P 6 charged by bank
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
Check No. 121 had been entered in the accounts as P 2,230 but was deducted on the bank statement in the correct amount of P 2,320.
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
The current bank statement shows a deduction of P 8.00 for a new checkbook
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
A check book of an unauthorized person had been deducted from the account by the bank in error.
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
Deposit of May 29 not recorded by the bank until June 2
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
Outstanding checks totaled P 8,600
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
A check for P 161 written by TC Corporation had been deducted on the bank statement of ETC Corporation
Addition to cash balance per cash account
Addition to cash balance per bank statement
Deduction from cash balance per cash account
Deduction from cash balance per bank statement
Does not affect the reconciliation of cash balances
Which of the following items should not be recorded in the cash account?
Money Orders
Certificates of Deposits
Postage Stamps
Ordinary checks
