7) If the balance on the bank statement does not equal the balance in the company's cash account: A) It is perfectly normal for the two balances to be different. B) The bookkeeper made a mistake. C) Both the bank and the bookkeeper made a mistake. D) The bank made a mistake.

8) A bank reconciliation: A) Is a formal financial statement. B) Should be prepared by an employee who handles cash transactions. C) Is done only at the end of the fiscal year. D) Is part of a sound internal control system.

9) A cheque cashed by the payee for $3,200 was recorded in the makers accounting records for $320. On a bank reconciliation: A) $2,880 will be deducted from the book balance. B) $2,880 will be added to the book balance. C) $2,880 will be deducted from the bank balance. D) $2,880 will be added to the bank balance.

10) A cheque for the cash purchase of supplies for $429 was recorded on the books as $339. On a bank reconciliation, this will appear as a(n): A) Deduction from the bank balance. B) Deduction from the book balance. C) Addition to the book balance. D) Addition to the bank balance.