Q. The purpose of a two-way bank reconciliation is to:

A.

Determine whether the adjusted balances per books and per bank agree

Determine the outstanding checks that must be subtracted from the balance per books

Determine the deposits in transit that must be subtracted from the balance per bank

Determine that all errors are added to balance per books

Q. A check recorded in December in the amount of $651,752 was actually written in the correct amount of $642,752. If this error is not corrected it will result in the:

A.

Balance per bank being overstated in the amount of $642,752

Balance per book being understated in the amount of $642,752

Balance per book being understated in the amount of $9,000

Balance per book being overstated in the amount of $9,000

Q. When preparing the December 20X9 bank reconciliation the preparer:

A.

Should ignore the November 20X9 bank reconciliation

Should refer to the January 20X0 bank reconciliation

Should refer to the November 20X9 bank reconciliation

Should be the same person that issues Brony's Bikes checks