1)Which of the following items require an adjustment on the bank side of the bank reconciliation ?

a) a bank service charge

b) interest earned

c) a note collected by the bank

d) deposits in transit

2)Which of the following serves as the 'journal of last resort' ?

a)cash payments journal

b)general journal

c)purchases journal

d)sales journal

3) The ending merchandise inventory for the current accounting period is overstated by 3,500 dollars. What will be the effect of this error ?

a)Net income for the current accounting period will be overstated by 3,500 dollars.

b)Cost of goods sold for the next accounting period will be undersstated by 3,500 dollars.

c)Cost of goods sold for the current accounting period will be overstated by 3,500 dollars.

d)Ending merchandise inventory for the next accounting period will be overstated by 3,500 dollars.