The author describes a commonly used format for the bank reconciliation which begins with the cash balance from bank statement (balance per bank) and the cash balance from company records (balance per company). Certain items are added/deducted in the determination of the adjusted cash balance. What adjustment is required for NSF checks? Add to balance per bank Deduct from balance per bank Add to balance per company Deduct from balance per company Each of the following represents an effective cash management practice except: Invest idle cash in short-term, highly liquid, investments. Delaying payments to suppliers (without compromising the relationship with the supplier). Collect accounts receivable as soon as possible without damaging customer relationships O inventory purchases should be made well in advance of anticipated sales to eliminate "out of stock" issues and resulting lost sales. Failure to record accrued interest expense would result in which of the following financial misstatements? Assets being overstated Assets being understated Liabilities being overstated Liabilities being understated A law firm purchased supplies at a cost of $20,000 during the year. At January 1, the beginning balance in the supplies account was $1,600. For the year, the recorded supplies expense was $11,200. What is the balance of the supplies account of December 312 $10,100 $10,400 20,000 $21,300 Failure to record the earned portion of unearned revenue would result in which of the following? Net Income being overstated. No effect on total liabilities. Stockholders' equity being overstated. Liabilities being overstated