1. Which of the following procedures should be performed to verify balance per bank on bank reconciliation?

1. Compare to general ledger
2. Confirm directly with bank on standard form
3. Trace to cash disbursement journal
4. Trace to cash receipts journal

2. What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1, shipped FOB shipping point, which were recorded in December of 20X0 as credit sales ?

1. Operating expenses are overstated for the 12 months ended December 31, 20X1
2. Account receivable are understated at December 31,20X0
3. Account receivable are overstates at December 31, 20X0
4. Sales returns and allowance are overstated at December 31, 20X0

3. In the electronic confirmation simulation project, you set up a client name Simply Soup Inc.. You are asked to confirm cash balance, What type of confirmation did you send out?

1. Positive confirmation

b. Negative confirmation