1. Moccasin Company maintains a Petty Cash Fund. The beginning balance of the fund in the month of October was $100. The following payments were made from the fund during the month of October:

Floral delivery squad	$10.00
Pencils and pens	5.00
Local newspapers	3.00
Postage on incoming packages	3.50
Reimburse employee for stamps	2.40
Postage for mailings packages	2.50
Stick-on tabs	3.90
Memo pads	10.50
Trash removal	9.70

Compute the balance of the fund as on October 31.

a.$50.50

b.$52.90

c.$55.40

d.$49.50

2. Cadmium, Inc., provides consultancy services and has the following information on September 30:

Cash register tape	$648
Cash count	795
Change Fund	150

Compute the cash shortage or cash overage to be recorded by Cadmium on September 30.

a.$10 shortage

b.$3 overage

c.$3 shortage

d.$10 overage

3. After removing the Change Fund, a cash shortage exists if:

a.the Change Fund is greater than the Petty Cash Fund.

b.the day's receipts are greater than the register reading.

c.the day's receipts are less than the register reading.

d.the Petty Cash Fund is greater than the Change Fund.

4. Which of the following is added to the bank statement balance to arrive at the adjusted bank statement balance while preparing a bank reconciliation statement?

a.A collection fee charged

b.A deposit in transit

c.An outstanding check

d.An NSF check

5. Which of the following is considered a credit memo in a bank account?

a.Checks written

b.Service charges

c.Notes collected

d.NSF checks