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Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Which of the following is an advantage
Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Which of the following is an advantage of using bank accounts? a. Bank accounts reduce the amount of cash on hand. b. The use of bank accounts facilitates the transfer of funds using EFT systems. c. Bank accounts provide an independent recording of cash transactions that can be compared to the company's recording of cash transactions. d. All of these choices are correct. 2. Which of the following is NOT a reason for which a bank issues debit memos? a. Service charges b. Customer checks returned for insufficient funds C. Payments made by electronic funds transfer d. Interest earned on the company's account Click to watch the Tell Me More Learning Objective 5 video and then answer the questions below. 1. When preparing a bank reconciliation, outstanding checks are a. deducted from the bank balance b. added to the bank balance c. deducted from the company's cash balance d. added to the company's cash balance 2. When preparing a bank reconciliation, a not sufficient funds (NSF) check is a. deducted from the bank balance b. added to the bank balance c. deducted from the company's cash balance d. added to the company's cash balance Click to watch the Tell Me More Learning Objective 6 video and then answer the questions below. 1. A petty cash fund of $500 is established on October 1. The entry to record the transaction is a. debit Petty Cash, credit Cash. b. debit Cash, credit Petty Cash. c. debit Petty Cash Expense, credit Cash. d. debit Retained Earnings, credit Petty Cash 2. Replenishing the petty cash fund requires a. a debit to Cash b. a credit to Cash c. a debit to Petty Cash. d. no entry Click to watch the Tell Me More Learning Objective 7 video and then answer the questions below. 1. Examples of cash equivalents include all of the following except a. U.S. Treasury bills b. notes issued by major corporations (referred to as commercial paper) c. currency and coins. d. long-term notes receivable 2. A company has the following current assets: Cash, $10,000 Commercial paper, $5,000 Treasury bills, $4,000 Accounts receivable, $10,000 Inventory, $20,000 What is the total amount of cash and cash equivalents? a. $10,000 b. $14,000 c. $15,000 d. $19,000
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