2. Which one of the following is not an objective of a system of internal controls? a. Safeguard company assets b. Overstate liabilities in order to be conservative Enhance the accuracy and reliability of accounting records d. Reduce the risks of errors c. 3. A check corectly written and paid by the bank for $882 is incorrectly recorded on the company's books for $828. The appropriate adjustment on a bank reconciliation would be to: a. deduct $54 from the book's balance.. b. deduct $882 from the book's balance. add $54 to the bank's balance. c. d. add $54 to the book's balance red4. Each of the following items affect the cash balance per books except notes collected by the bank b. outstanding checks. a. c. NSF checks. d. bank service charge 5. A check drawn by a company for $340 in payment of a liability was recorded in the journal $430. What entry is required in the company's accounts? a. debit Accounts Payable; credit Cash b. debit Cash; credit Accounts Receivable as d d no c. debit Cash; credit Accounts Payable d. debit Accounts Receivable; credit Cash O ber 6. The existing balance in Allowance for Bad Debt Accounts is considered in computing Uncollectible Account Expense in the a. direct write-off method. b. percentage/analysis of receivables basis. c. percentage of sales basis. d. percentage of receivables and percentage of sales basis. 7. Wilson Company gathered the following reconciling information in preparing its August ban reconciliation: $7,000 Cash balance per books, 8/31 Deposits in transit Notes receivable and interest collected by bank Bank charge for check printing Outstanding checks NSF check 300 1,700 40 4,000 340