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- Download: http://solutionzip.com/downloads/20-mcq-outstanding-checks/
- Question 1 of 20 5.0 Points
- Outstanding checks
- A. have been subtracted on the bank records but not the checkbook records.
- B. haven’t been presented to the bank for payment and haven’t been subtracted from the checkbook.
- C. haven’t been presented to the bank for payment but have been subtracted in the checkbook.
- D. have been returned to the business for nonpayment.
- Question 2 of 20 5.0 Points
- A restrictive endorsement on a check
- A. can be further endorsed by someone else.
- B. is the safest endorsement for businesses.
- C. permits the bank to use its best judgment.
- D. None of the above
- Question 3 of 20 5.0 Points
- Endorsing a check
- A. guarantees payment.
- B. transfers the right to deposit or transfer cash.
- C. cancels the transaction.
- D. All of the above
- Question 4 of 20 5.0 Points
- Checks that have been processed by the bank and are no longer negotiable are
- A. outstanding checks.
- B. canceled checks.
- C. checks in process.
- D. blank checks.
- Question 5 of 20 5.0 Points
- If the bank charged another company’s check against Shoe Depot’s account, this would be included on the bank reconciliation as a/an
- A. addition to the balance per books.
- B. subtraction from the balance per books.
- C. addition to the balance per bank.
- D. subtraction from the balance per bank.
- Question 6 of 20 5.0 Points
- The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following:
- • A check for $200 to pay the electric bill was recorded on the books as $20.
- • Included on the bank statement was a note collected by the bank for $400 plus interest of $30.
- • Checks outstanding totaled $260.
- • Bank service charges were $50.
- • Deposits in transit were $2,140.
- The adjusted cash balance at the end of August should be
- A. $9,810.
- B. $7,620.
- C. $7,980.
- D. $8,180.
- Question 7 of 20 5.0 Points
- Advantages of online banking include
- A. convenience.
- B. transaction speed.
- C. effectiveness.
- D. All of the above
- Question 8 of 20 5.0 Points
- A bank service charge would be included on the bank reconciliation as a/an
- A. addition to the balance per books.
- B. subtraction from the balance per books.
- C. addition to the balance per bank.
- D. subtraction from the balance per bank.
- Question 9 of 20 5.0 Points
- How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance?
- A. They would be added to the balance of the bank statement.
- B. They would be subtracted from the balance of the bank statement.
- C. They would be added to the balance per books.
- D. They would be ignored.
- Question 10 of 20 5.0 Points
- Using the following information, determine the adjusted cash balance per bank for Santa’s Packaging on November 30.
- Cash balance on the bank statement $2,350
- Customer’s check returned—NSF 500
- Customer’s note collected by the bank 600
- Deposits in transit, November 30 1,400
- Outstanding checks, November 30 2,650
- A. $1,250
- B. $1,100
- C. $1,550
- D. $1,350
- Question 11 of 20 5.0 Points
- The drawee is the
- A. person who writes the check.
- B. bank with which the drawer has an account.
- C. person to whom the check is payable.
- D. person who reconciles the account.
- Question 12 of 20 5.0 Points
- Which of the following bank reconciliation items would be reflected in a journal entry?
- A. Error made by the bank
- B. Outstanding checks
- C. Bank service charges
- D. Deposit in transit
- Question 13 of 20 5.0 Points
- Which item should be added to the company’s book balance during the bank reconciliation?
- A. Deposit in transit
- B. Check outstanding
- C. Bank service charge
- D. Note collected by the bank
- Question 14 of 20 5.0 Points
- The first two numbers of the ABA code listed on the check represent the
- A. Federal Reserve District.
- B. check number.
- C. routing number.
- D. account number.
- Question 15 of 20 5.0 Points
- The check is written and signed by the
- A. drawer.
- B. drawee.
- C. payee.
- D. payer.
- Question 16 of 20 5.0 Points
- A bank statement includes bank charges. On the bank reconciliation, the item is a/an
- A. addition to the balance per company books.
- B. addition to the balance per bank statement.
- C. deduction from the balance per bank statement.
- D. deduction from the balance per company books.
- Question 17 of 20 5.0 Points
- Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should
- A. increase its cash account on the company’s books.
- B. decrease its cash account on the company’s books.
- C. increase the ending cash balance on the bank statement.
- D. decrease the ending cash balance on the bank statement.
- Question 18 of 20 5.0 Points
- Internal control over a company’s assets should include which of the following?
- A. Responsibilities and duties of employees will be divided.
- B. All cash receipts will be deposited into the bank the same day they arrive.
- C. All cash payments will be made by check (except petty cash).
- D. All of the above
- Question 19 of 20 5.0 Points
- A blank endorsement on a check
- A. can be further endorsed by someone else.
- B. cannot be further endorsed by someone else.
- C. is the safest type of endorsement.
- D. permits only the original endorser to get the money.
- Question 20 of 20 5.0 Points
- A full endorsement on a check
- A. is the same as a blank endorsement.
- B. can be endorsed only by the person or company named in the original endorsement.
- C. is the safest endorsement for businesses.
- D. None of the above
- Download: http://solutionzip.com/downloads/20-mcq-outstanding-checks/
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