1. The payor is the party to whom payment is made a. True b. False 2. Bank customers are considered creditors of the bank, so the bank shows their accounts with credit balances on the bank's records. a. True b. False 3. Depositing all cash, checks, etc., in a bank and paying with checks is an internal control procedure over cash a. True In preparing a bank reconciliation, the amount of deposits in transit is deducted from the balance per bank statement. a. True b. False 5. In preparing a bank reconciliation, the amount of outstanding checks is added to the balance per bank statement a. True b. False 6. In preparing a bank reconciliation, the amount indicated by a debit memorandum for the bank services charges is added to the balance per depositor's records a. True b. False -7. In preparing a bank reconciliation, the amount of a check omitted from the journal is added to the balance per depositor's records. a. True b. False 8. A check for $456 was erroneously charged by the bank as $654. In order for the bank reconciliation to balance, you must add $198 to the bank statement balance. a. True b. False 9. If an adjustment for an NSF check is made in a company's bank reconciliation, then the company must have written a bad check during the month. a. True b. False 10. The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date. a. True b. False Focu