17. Which of the following items will NOT appear as deductions on a bank statement? A) NSF checks B) EFT Page 3 of 4 C) Service Charge D) Deposits 18. A check was written by a business for $507 but was recorded in the journal as $705. How would this error be included on the bank reconciliation? A) a deduction on the bank side B) an addition on the book side C) an addition on the bank side D) a deduction on the book side CHAPTER 8 19. Which of the following statements regarding receivables is correct? A) Each receivable transaction involves three parties. B) Receivables occur when a business loans money to another party. C) A receivable occurs when a business makes a cash sale of goods or services to another party D) A receivable is the right to pay cash in the future from a 20. Which of the following statements is true? A) Accounts receivable are more liquid than cash. B) Notes receivable are always classified as current assets. C) Notes receivable usually have longer collection terms than accounts receivable. D) Accounts receivable are liabilities 21. Which of the following should be classified as a long-term asset? A) Interest Receivable B) Accounts Receivable C) Notes Receivable, due in 5 years D) Cash Equivalents CHAPTER 9 22. Which of the following is included in the cost of a plant asset? A) amounts paid to make the asset ready for its intended use B) regular repair and maintenance costs C) replacement of damaged parts of the asset D) wages of workers who use the asset in normal operations 23. Masonry Construction Group paid $10,000 for a plant asset that had a market value of $14,500. At which of the following amounts should the plant asset be recorded? A) $14,500 B) $5000 C) $10,000 D) $20,000 24. Which of the following is NOT recorded as the cost of a building? A) building permits B) fencing C) architectural fees D) contractor charges