Question 1

1pts

The one characteristic that all entries recorded in a cash payments journal have in common is

that they all represent purchases of merchandise.

a credit to the cash account.

that they are all posted to the accounts payable subsidiary ledger.

a debit to the accounts payable or purchases accounts.

Flag this Question

Question 2

1pts

If a transaction cannot be recorded in a special journal

the company must refuse to enter into the transaction.

it is recorded in the general journal.

it is recorded directly in the accounts in the general ledger.

it is recorded as an adjustment on the work sheet.

Flag this Question

Question 3

1pts

Posting a sales journal to the accounts in the general ledger requires a

debit to Cash and a credit to Sales.

debit to Sales and a credit to Inventory.

debit to Accounts Receivable and a credit to Inventory.

debit to Accounts Receivable and a credit to Sales.

Flag this Question

Question 4

1pts

A petty cash fund of $100 is replenished when the fund contains $3 in cash and receipts for $93. The entry to replenish the fund would

credit Cash Over and Short for $4.

credit Miscellaneous Revenue for $4.

debit Cash Over and Short for $4.

debit Miscellaneous Expense for $4.

Flag this Question

Question 5

1pts

A petty cash fund is generally established in order to

pay for all merchandise purchased on account.

pay employees' wages.

make loans internally to employees.

pay relatively small expenditures.

Flag this Question

Question 6

1pts

The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2,300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer's check for $320 was returned because it was NSF. A customer's check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97. The correct balance in the cash account was

$45,512.

$45,548.

$45,728.

$45,848.

Flag this Question

Question 7

1pts

Deposits in transit

have been recorded on the company's books but not yet by the bank.

have been recorded by the bank but not yet by the company.

have not been recorded by the bank or the company.

are checks from customers which have not yet been received by the company.

Flag this Question

Question 8

1pts

An adjusting entry isnotrequired for

outstanding checks.

collection of a note by the bank.

NSF checks.

bank service charges.

Flag this Question

Question 9

1pts

Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:

debit accounts receivable, credit cash

debit cash, credit accounts receivable

debit miscellaneous expense, credit cash

No adjusting entry is necessary.

Flag this Question

Question 10

1pts

If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company's books for $482, the appropriate treatment on the bank reconciliation would be to

add $54 to the bank's balance.

add $54 to the book's balance.

deduct $54 from the bank's balance.

deduct $428 from the book's balance.