1. When a petty cash fund is in use:

Petty Cash is credited when funds are replenished.

Petty Cash is debited when funds are replenished.

expenses are not recorded.

expenses paid with petty cash are recorded when the fund is replenished.

2. Which of the following items appearing on a bank reconciliation require a journal entry to bring the Cash account up-to-date?

An error made by the bank in recording a deposit

Outstanding check

Check from customers returned as NSF

Deposit in transit

3. Which one of the statements appearing below is correct regarding bank reconciliations?

After preparing a bank reconciliation, no journal entries need to be made for outstanding checks or deposits in transit.

If a company's records show a different cash balance from that shown on the company's bank statement, either the company or the bank has made an error.

The up-to-date ending cash balance on the bank statement side should not equal the up-to-date ending cash balance on the book side.

A bank reconciliation is an external report prepared to report the cash balance to investors and creditors.

4. If a cashier rang up sales totaling $5,096, but had $5,100 to deposit, which journal entry would be recorded?

A debit to Cash for $5,096, a debit to Cash Shortage for $4, and a credit to Sales Revenue for $5,100.

A debit to Cash for $5,096, a debit to Cash Shortage for $4, and a credit to Unearned Revenue for $5,100.

A debit to Sales for $5,100, a debit to Cash Overage for $4, and a credit to Cash for $5,096.

A debit to Cash for $5,100, a credit to Cash Overage for $4, and a credit to Sales Revenue for $5,096.