Outstanding checks haven't been presented to the bank for payment but have been subtracted in the checkbook. have been subtracted on the bank records but not the checkbook records. have been returned to the business for nonpayment. haven't been presented to the bank for payment and haven't been subtracted from the checkbook. Question 2 (5 points) Using the following information, calculate the adjusted cash balance at the end of April. $2.000 Bank statement ending cash balance General ledger cash balance ending Bank monthly service charge Deposits in transit Outstanding checks NSF check returned with bank statement $4,000 $4,250 $3,000 $5,500 Which item should be added to the company's book balance during the bank reconciliation? Deposit in transit Note collected by the bank Bank service charge Check outstanding Advantages of online banking include convenience. transaction speed. effectiveness. All of the above Which of the following bank reconciliation items would be reflected in a journal entry? Deposit in transit Bank service charges Outstanding checks Error made by the bank A nonsufficient-funds check was returned to your company. How does the bank treat this on your bank statement? It's added to the bank balance. It's shown as a debit memo. It's shown as a credit memo. None of the above The check is written and signed by the payee. drawer drawee. payer. The bank statement shows the beginning bank balance of the cash at the start of the month. the checks the bank has paid and any deposits received. any other charges or additions to the bank balance. All of the above Internal control over a company's assets should include which of the following? Responsibilities and duties of employees will be divided. All cash receipts will be deposited into the bank the same day they arrive. All cash payments will be made by check (except petty cash). All of the above The first two numbers of the ABA code listed on the check represent the account number. Federal Reserve District. routing number check number Endorsing a check guarantees payment. transfers the right to deposit or transfer cash. cancels the transaction. All of the above The drawee is the person to whom the check is payable. bank with which the drawer has an account. person who writes the check. person who reconciles the account. Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should decrease the ending cash balance on the bank statement. decrease its cash account on the company's books. increase its cash account on the company's books. increase the ending cash balance on the bank statement Question 14 (5 points) How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? They would be ignored. They would be subtracted from the balance of the bank statement. They would be added to the balance of the bank statement. They would be added to the balance per books. Company policy for internal control should include all of the following except for which one? Employees will be rotated. At time of payment, all supporting invoices or documents will be stamped "paid." Monthly bank statements should be sent to and reconciled by the same employees who authorize payments and write checks. The owner (or responsible employee) signs all checks after receiving authorization to pay from the departments concerned. Question 16 (5 points) A restrictive endorsement on a check can be further endorsed by someone else. is the safest endorsement for businesses. permits the bank to use its best judgment. None of the above An example of an internal control is the use of a bank account. the use of pre-numbered checks. the use of checks with reference source documents. All of the above Question 18 (5 points) A bank service charge would be included on the bank reconciliation as a/an subtraction from the balance per books, addition to the balance per bank. subtraction from the balance per bank. addition to the balance per books. If the written amount on the check doesn't match the amount expressed in figures, the bank may pay the amount written in words. return the check unpaid. contact the drawer to see what was meant. All of the above Question 20 (5 points) From the bank reconciliation, no entry was recorded for deposits in transit. This would cause assets to be understated. no impact since deposits in transit are already included in the balance per books. no impact since deposits aren't recorded on the books. assets to be overstated