Fundamentals of Accountancy, Business and Management 2

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Which party is responsible for making the check?

Drawee

Drawer (correct)

Payee

Bank

Where is the check number usually indicated on the check?

Upper left portion

Lower right portion

Lower left portion

Upper right portion (correct)

What does NSF stand for in the context of banking?

Not Sufficient Funds

Not Sufficient Fund (correct)

No Sufficient Funds

No Sufficient Fund

What are some reconciling items for the records of the company (book)?

Credit memos Signup and view all the answers

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 Signup and view all the answers

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 Signup and view all the answers

What is the purpose of checks?

To make payments without carrying large amounts of money Signup and view all the answers

What does NSF stand for in the context of banking?

Not Sufficient Fund Signup and view all the answers

What are some examples of debit transactions mentioned in the text?

Bank service charge and NSF Signup and view all the answers

What are some examples of reconciling items for the bank mentioned in the text?

Deposits in transit and outstanding checks Signup and view all the answers

Which party is responsible for making the check?

Drawer Signup and view all the answers

What is the purpose of checks?

To make payments without the need to carry large amounts of money Signup and view all the answers

Where is the check number usually indicated on the check?

Upper right portion Signup and view all the answers

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 Signup and view all the answers

What are check printing charges?

Charges incurred when a company arranges for its bank to handle check reordering Signup and view all the answers

When does interest earned appear on a bank statement?

When the company earns interest on its account balances Signup and view all the answers

What are Note Receivables?

Assets of a company Signup and view all the answers

What can result in errors in a company's Cash account?

All of the above Signup and view all the answers

Which of the following is a reconciling item for the bank mentioned in the text?

Outstanding checks Signup and view all the answers

What is the purpose of a bank reconciliation statement?

To check the balance between the company's records and the bank's records Signup and view all the answers

What is the first step in the bank reconciliation process?

Adjusting the balance per bank Signup and view all the answers

What are some reconciling items for the records of the company (book)?

Credit memos Signup and view all the answers

When do the adjusted balances in the bank reconciliation process need to be equal?

After comparing the adjusted balances Signup and view all the answers

Which of the following is NOT a reconciling item for the records of the company (book)?

Outstanding checks Signup and view all the answers

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 Signup and view all the answers

What are some examples of reconciling items for the bank mentioned in the text?

Deposits in transit Signup and view all the answers

Which of the following is a purpose of business forms?

To document business transactions Signup and view all the answers

What is the purpose of adjusting entries?

To update accounting balances Signup and view all the answers

Which type of business form is used only within the business?

Internal business form Signup and view all the answers

What is the purpose of closing entries?

To reduce nominal or temporary accounts to zero Signup and view all the answers

What is the purpose of a bank reconciliation statement?

To reconcile the company's records with the bank statement Signup and view all the answers

Which of the following is NOT a type of business form mentioned in the text?

Sales invoice Signup and view all the answers

What is the purpose of adjusting entries?

To update accounting balances and ensure accurate financial information Signup and view all the answers

Which of the following is NOT a book mentioned in the text?

General ledger Signup and view all the answers

What is the purpose of the closing entries?

To reduce nominal or temporary accounts to zero Signup and view all the answers

What is the purpose of the bank reconciliation statement?

To reconcile the bank statement balance with the company's records Signup and view all the answers

Which type of business form is used to document cash transactions?

Official receipts Signup and view all the answers

What is the purpose of adjusting entries?

To update accounting balances Signup and view all the answers

Which type of account is debited against the income and expense summary account during the closing entries?

Revenue account Signup and view all the answers

Fundamentals of Accountancy, Business and Management 2 - First Semester (2nd Periodical)

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Questions and Answers

Which party is responsible for making the check?

Where is the check number usually indicated on the check?

What does NSF stand for in the context of banking?

What are some reconciling items for the records of the company (book)?

What is the purpose of a bank reconciliation statement?

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?

What is the purpose of checks?

What does NSF stand for in the context of banking?

What are some examples of debit transactions mentioned in the text?

What are some examples of reconciling items for the bank mentioned in the text?

Which party is responsible for making the check?

What is the purpose of checks?

Where is the check number usually indicated on the check?

Which of the following is a reason why a check may be returned as an NSF check?

What are check printing charges?

When does interest earned appear on a bank statement?

What are Note Receivables?

What can result in errors in a company's Cash account?

Which of the following is a reconciling item for the bank mentioned in the text?

What is the purpose of a bank reconciliation statement?

What is the first step in the bank reconciliation process?

What are some reconciling items for the records of the company (book)?

When do the adjusted balances in the bank reconciliation process need to be equal?

Which of the following is NOT a reconciling item for the records of the company (book)?

When does the adjusted cash balance appear on the Statement of Financial Position (Balance Sheet)?

What are some examples of reconciling items for the bank mentioned in the text?

Which of the following is a purpose of business forms?

What is the purpose of adjusting entries?

Which type of business form is used only within the business?

What is the purpose of closing entries?

What is the purpose of a bank reconciliation statement?

Which of the following is NOT a type of business form mentioned in the text?

What is the purpose of adjusting entries?

Which of the following is NOT a book mentioned in the text?

What is the purpose of the closing entries?

What is the purpose of the bank reconciliation statement?

Which type of business form is used to document cash transactions?

What is the purpose of adjusting entries?

Which type of account is debited against the income and expense summary account during the closing entries?

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