Page 1 of 6 111 (2) Financial Accounting Midterm: Chapter 7-9 (April 10, 2023) Part 1: Multiple Choice (@2, 70/100) 1. An adjusting entry is not required for A. outstanding checks. B. collection of a note by the bank. C. NSF checks. D. bank service charges. 2. Which of the following relationships best describes the percentage of receivables basis of valuing accounts receivable? A. Matching, emphasis on income statement relationships. B. Cash realizable value emphasis on income statement relationships.. C. Matching, emphasis on statement of financial position relationships. D. Cash realizable value, emphasis on statement of financial position relationships. 3. When a note receivable is dishonored, A. interest revenue is never recorded. B. bad debts expense is recorded. C. the maturity value of the note is written off. D. Accounts Receivable is debited if eventual collection is expected. 4. In preparing its bank reconciliation for the month of April 2014, Franklin, Inc. has available the following information.. Balance per bank statement. 4/30/14 $58,710 NSF check returned with 4/30/14 bank statement 625 Deposits in transit, 4/30/14 7,500 Outstanding checks, 4/30/14 7,800 Bank service charges for April What should be the adjusted cash balance at April 30, 2014? 30 A. $59,055. B. $58,410. C. $57,735. D. $57,705. 5. Heath Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, 7/31 7,500 Deposits in transit 150 Notes receivable and interest collected by bank Bank charge for check printing 850 20 Outstanding checks 2,000 NSF check 170 The adjusted cash balance per books on July 31 is A. 8,160. B. 8,010. C. 6,310. D. 6,460