1. In the normal operation of business, you receive a check from a customer and deposit it into your checking account. With your bank statement, you are advised that this check for $775 is NSF. The bank also informs you that due to the amount of activity on your business account the monthly service charge is $75. During a bank reconciliation, you will

a.add both values to the cash balance according to the bank statement

b.subtract both values from the cash balance according to the companys records

c.subtract both values from the cash balance according to the bank statement

d.add both values to the cash balance according to the companys records

2. When there are major changes in a company's strategy, business structure, or operations, evaluations of controls are usually performed by

a.external auditors

b.senior management

c.the Securities and Exchange Commission

d.internal auditors

3. Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation.

Cash balance per company records, September 30	$2,544
Deposits in transit	405
Notes receivable and interest collected by bank	841
Bank charge for check printing	23
Outstanding checks	1,254
NSF check	125

Determine the adjusted balance on September 30.

a.$2,513

b.$1,695

c.$3,237

d.$2,388

4. Thompson Company gathered the following reconciling information in preparing its October bank reconciliation.

Cash balance per bank, October 31	$14,995
Note receivable collected by bank	3,667
Outstanding checks	8,808
Deposits in transit	5,698
Bank service charge	85
NSF check	2,084

Determine the cash balance per company records (before adjustment) on October 31.

a.$29,501

b.$11,885

c.$10,387

d.$13,383