1) If the amount of bad debts is significant, use of the direct write-off method increases the usefulness of both the income statement and statement of financial position.

Select one:

2)

In a bank reconciliation, when the bank statement shows a debit balance, unpresented cheques are

Select one:

a.

Deducted from the business records balance

b.

Added to the business records balance

c.

Added to the balance as per bank statement

d.

Deducted from the balance as per bank statement

3)

Which one of the following is not an example of internal control procedures?

Select one:

a.

Reconciling the bank statement

b.

Insistence that employees take vacations

c.

Customer satisfaction surveys

d.

Using pre-numbered documents

True

False

4)

On 31 December, the bank statement of Jason Ltd shows a credit balance of $5,000. There is an outstanding deposit of $300, and an unpresented cheque of $600. Bank charges not recorded in the companys book amounts to $50. What is the correct cash balance as per bank on 31 December?

Select one:

a.

$5,300

b.

$4,650

c.

$4,700

d.

$5,250