27) From the bank reconciliation no entry was recorded for deposits in transit. This would cause:

A) assets to be overstated.

B) assets to be understated.

C) no impact since deposits in transit are already included in the balance per books.

D) no impact since deposits are not recorded on the books.

28) The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

29) A bank service charge would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

30) An error, on the company's books, in recording a $82 deposit as $28 would be included on the bank reconciliation as a(n):

A) addition to the balance per bank.

B) subtraction from the balance per bank.

C) addition to the balance per books.

D) subtraction from the balance per books.

31) The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

32) On a bank reconciliation, outstanding checks are deducted from the balance per books.

33) Canceled checks are negotiable at the bank for the face value.

34) Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.

35) Deposits in transit result because of a timing difference between the bank records and checkbook records.

36) Any adjustment to the depositor's records because of an item on the bank statement requires a journal entry.