1. The depositor would prepare journal entries relating to the bank reconciliation:

A. to adjust the balance of the bank statement

B. for outstanding checks

C. for outstanding deposits (deposits in transit)

2. In preparing a bank reconciliation, outstanding deposits (a.k.a., deposits in transit) are :

a. deducted from the bank statement balance

b. added to the depositor's balance

c. added to the bank statement balance

d. deducted from the depositor's balance

3. Given: first purchase 10 items at $1; second purchase 7 items at $2. Sold 8 items. Which of the following is true regarding a LIFO flow of inventory?

a. Cost of Goods Solder under LIFO = $8

b. Cost of Goods Sold under LIFO = $15

c. 9 items are left in inventory with a value of $16

d. 9 items are left in inventory with a value of $9.