Question 1

The unadjusted trial balance shows total debits of $66,000 and total credits of $68,600. If there is only one type of error, which type would you look for?

Transposition

Doubling

Slide

Misclassification

Question 2

Your company writes a check for the correct amount of $123, but records it in the ledger as $132. To adjust for this in a bank reconciliation, you would:

reduce the bank balance by $9

increase the bank balance by $9

reduce the book balance by $9

increase the book balance by $9

Question 3

You are performing a bank reconciliation for August 20X1. The balance per bank is $21,863; the ledger Cash balance, $17,250. Outstanding checks are as follows: Check Number Amount 2003 $ 560 2004 910 2008 1,700 2009 2,110 You have also identified the following: A $13 bank service charge for August An NSF check for $720 Check #1996, made out to Local Gas & Electric for $798, was booked as $870 A $6 charge for your banks Web Banking, which the company does use

To reconcile the balance per book to the balance per bank will require adjusting the book balance by:

$811

$733

$727

$648

$667

Question 4

You are given the following complete trial balance:

Debits Account A $320 Account B 900 Account C 670 Account D 130

Credits Account E $2,870 Account F 1,000 Account G 800 Account H 400 $2,020 $4,900

Which account appears to be the result of a slide error?

Account A

Account B

Account C

Account D

Account E

Account F

Account G

Account H

Question 5

Bad debt expense of $500 recorded as $5,000 is an example of:

a transposition error

a classification error

use of an incorrect estimate

a slide error

Question 6

Which of these errors is easiest to find and correct?

Incorrect computation of the Interest Expense accrual

Incorrect estimation of bad debts expense

Crediting Sales Revenue instead of Account Receivable for a payment

Failure to record a transaction

Common Stock has a balance listed in the debit column of the trial balance

Question 7

While reviewing a trial balance, you notice the following account balances. Which one is likely to be an error?

Allowance for Doubtful Accounts with a credit balance of $23,000

Account Payable with a credit balance of $6,600

Accumulated Depreciation with a debit balance of $8,000

Account Receivable with a debit balance of $4,000

Inventory with a debit balance of $43,000

Question 8

On the bank reconciliation, outstanding checks should be:

Added to the bank side

Deducted from the bank side and added to the book side

Added to the book side

Deducted from the bank side

Deducted from the book side

Question 9

If a trial balance is in balance, it means there are no errors within the accounting records.

True

False

Question 10

After completing the bank reconcilaition, journal entries are required:

only for adjustments made to the book side

for adjustments made to the book side and for adjustments made to the bank side

only for adjustments made to the bank side

Question 11

The following checks were outstanding when you did last months bank reconciliation and remain outstanding this month:

Check number Amount

3452 $1,000

3454 1,500

3455 2,000

What adjustment should you make this month?

Increase the book balance by $4,500

Reduce the book balance by $4,500

Increase the bank balance by $4,500

No adjustment needed because they were outstanding last month

Reduce the bank balance by $4,500

Question 12

During the bank reconciliation, you see that the following checks have not cleared:

Check Number Amount

2003 $2,300

2004 2,400

2005 2,500

2006 3,300

What adjustment should you make?

Increase the bank balance by $10,500

Reduce the bank balance by $10,500

Increase the book balance by $10,500

Reduce the book balance by $10,500

Question 13

You are given the following complete trial balance with one account containing a transposition error:

Debits Account A $354 Account B 422 Account C 1,073 Account D 365 = 2214

Credits Account E $725 Account F 993 Account G 629 Account H 137 $2,484

Which account appears to contain the transposition error?

Account A

Account B

Account C

Account D

Account E

Account F

Account G

Account H

Question 14

During the bank reconciliation, you realize that the bank deposited another company's funds into your account. To adjust for this error, you must:

increase the book balance by the amount of the deposit

reduce the bank balance by the amount of the deposit

increase the bank balance by the amount of the deposit

reduce the book balance by the amount of the deposit

Question 15

In a trial balance, if the total debits do not equal the total credits and the difference is divisible by 2, the error could be the result of:

Reversing two digits

Using the wrong accounts in a journal entry

Adding or deleting one or more zeros to or from an amount

Showing a debit balance as a credit or a credit balance as a debit

Omitting an account balance

Question 16

While reviewing a trial balance, you notice the following account balances. Which one is likely to be an error?

Cash with a debit balance of $89,000

Sales Discounts with a debit balance of $3,000

Cost of Goods Sold with a debit balance of $123,000

Retained Earnings with a credit balance of $80,000

Dividends with a credit balance of $6,600

Question 17

On the bank reconciliation, service charges should be:

Deducted from the bank side

Deducted from the book side

Added to the bank side

Added to the book side

Deducted from the book side and added to the bank side

Question 18

On a trial balance, there is difference between total debits and total credits divisible by 9. If this is the only error, you can track it down and make the correction if this is:

a doubling error

an omission error

a misclassification error

a transposition error

Question 19

During a bank reconciliation, it is discovered that a deposit has been recorded by the bank, but it is not in the companys records. On the reconciliation, this deposit should be:

Deducted from the book side

Deducted from the bank side and added to the book side

Added to the book side

Added to the bank side

Deducted from the bank side

Question 20

During the bank reconciliation, you notice that the bank deducted $3,321 for check 3201, which was made out for the correct amount of $3,123. What adjustment do you make?

Increase the bank balance by $198

Reduce the bank balance by $198

Increase the book balance by $198

Reduce the book balance by $198

Question 21

The bank statement shows a balance of $7,000. Comparison of the bank statement to the depositor records shows an outstanding check of $1,000 and a deposit in transit of $275. In addition, it is discovered that another companys $250 check has been erroneously charged against your firms account. The reconciled bank balance is:

$6,025

$6,525

$6,250

$6,275

$7,475

Question 22

When creating a trial balance, the accounts are listed in which order?

Alphabetical by account title

Assets, Liabilities, Equity, Revenue, Expenses

Assets, Liabilities, Expenses, Revenue, Equity

Assets, Expenses, Equity, Liabilities, Revenue

Assets, Liabilities, Revenue, Equity, Expenses

Question 23

On a bank reconciliation, you adjust for a customers NSF check by:

reducing the book balance by the amount of the NSF check

increasing the bank balance by the amount of the NSF check

increasing the book balance by the amount of the NSF check

reducing the bank balance by the amount of the NSF check

Question 24

How frequently should the bank reconciliation be performed?

Quarterly

Weekly

Annually

Monthly

Each time wages are paid to employees

Question 25

You are performing a bank reconciliation for August 20X1. The balance per bank is $21,863; the ledger Cash balance, $17,250.

Outstanding checks are as follows:

Check Number Amount

2003 $ 560

2004 910

2008 1,700

2009 2,110

You have also identified the following: A $13 bank service charge for August An NSF check for $720 Check #1996, made out to Local Gas & Electric for $798, was booked as $870 A $6 charge for your banks Web Banking, which the company does use To reconcile the balance per book to the balance per bank will require adjusting the bank balance by:

$733

$667

$727

$5,280

$648

Question 26

On the bank reconciliation, deposits in transit should be:

Deducted from the bank side

Deducted from the book side and added to the bank side

Added to the book side

Deducted from the book side

Added to the bank side

Question 27

A trial balance may reveal:

a transposition error

a classification error

an omission error

a bank reconciliation error

Question 28

During the bank reconciliation, you realize that the bank charged your account for another company's check. To adjust for this error, you must:

increase the bank balance by the amount of the check

reduce the book balance by the amount of the check

increase the book balance by the amount of the check

reduce the bank balance by the amount of the check

Question 29

The bank statement balance of $7,850 does not include $1,200 in checks outstanding and $750 deposits in transit. When the bank balance is adjusted, it will be:

$8,300

$7,850

$7,415

$7,385

$7,400

Question 30

You are given the following complete trial balance:

Debits Account A $536 Account B 727 Account C 343 Account D 436 Account E = 2042

$1,044 Account F 322 Account G 218 Account H 894 = $2,478

Which account appears to have its balance improperly transferred to the trial balance?

Account A

Account B

Account C

Account D

Account E

Account F

Account G

Account H