39 Questions
Which party is responsible for making the check?
Drawer
Where is the check number usually indicated on the check?
Upper right portion
What does NSF stand for in the context of banking?
Not Sufficient Fund
What are some reconciling items for the records of the company (book)?
Credit memos
What is the purpose of a bank reconciliation statement?
To check the balance between the records of the company and the records of the bank
Which party writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering his bank to pay that person or company the amount of money stated?
Drawer
What is the purpose of checks?
To make payments without carrying large amounts of money
What does NSF stand for in the context of banking?
Not Sufficient Fund
What are some examples of debit transactions mentioned in the text?
Bank service charge and NSF
What are some examples of reconciling items for the bank mentioned in the text?
Deposits in transit and outstanding checks
Which party is responsible for making the check?
Drawer
What is the purpose of checks?
To make payments without the need to carry large amounts of money
Where is the check number usually indicated on the check?
Upper right portion
Which of the following is a reason why a check may be returned as an NSF check?
The account did not have enough money to cover the check
What are check printing charges?
Charges incurred when a company arranges for its bank to handle check reordering
When does interest earned appear on a bank statement?
When the company earns interest on its account balances
What are Note Receivables?
Assets of a company
What can result in errors in a company's Cash account?
All of the above
Which of the following is a reconciling item for the bank mentioned in the text?
Outstanding checks
What is the purpose of a bank reconciliation statement?
To check the balance between the company's records and the bank's records
What is the first step in the bank reconciliation process?
Adjusting the balance per bank
What are some reconciling items for the records of the company (book)?
Credit memos
When do the adjusted balances in the bank reconciliation process need to be equal?
After comparing the adjusted balances
Which of the following is NOT a reconciling item for the records of the company (book)?
Outstanding checks
When does the adjusted cash balance appear on the Statement of Financial Position (Balance Sheet)?
It does not appear on the Statement of Financial Position
What are some examples of reconciling items for the bank mentioned in the text?
Deposits in transit
Which of the following is a purpose of business forms?
To document business transactions
What is the purpose of adjusting entries?
To update accounting balances
Which type of business form is used only within the business?
Internal business form
What is the purpose of closing entries?
To reduce nominal or temporary accounts to zero
What is the purpose of a bank reconciliation statement?
To reconcile the company's records with the bank statement
Which of the following is NOT a type of business form mentioned in the text?
Sales invoice
What is the purpose of adjusting entries?
To update accounting balances and ensure accurate financial information
Which of the following is NOT a book mentioned in the text?
General ledger
What is the purpose of the closing entries?
To reduce nominal or temporary accounts to zero
What is the purpose of the bank reconciliation statement?
To reconcile the bank statement balance with the company's records
Which type of business form is used to document cash transactions?
Official receipts
What is the purpose of adjusting entries?
To update accounting balances
Which type of account is debited against the income and expense summary account during the closing entries?
Revenue account
Test your knowledge on basic documents and transactions related to bank deposits with this quiz. Learn about the different types of bank accounts, common transactions, and important documents. Assess your understanding by answering questions and be prepared to discuss their uses and importance in class.
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