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| 1 | |
Payee is to whom the check is payable to. |
| | A) | True |
| | B) | False |
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| 2 | |
The word "and" represent the decimal position when writing the verbal amount of the check. |
| | A) | True |
| | B) | False |
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| 3 | |
A full endorsement is as safe as the restrictive endorsement. |
| | A) | True |
| | B) | False |
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| 4 | |
Outstanding checks have not reached the bank for processing by the time the bank statement was prepared. |
| | A) | True |
| | B) | False |
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| 5 | |
All checking accounts earn interest. |
| | A) | True |
| | B) | False |
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| 6 | |
NSF results in a bank crediting one's account. |
| | A) | True |
| | B) | False |
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| 7 | |
The process of analyzing the differences between the bank statement balance and the checkbook balance is: |
| | A) | Checks outstanding |
| | B) | Bank audit |
| | C) | Deposits in transit |
| | D) | Bank reconciliation |
| | E) | None of the above |
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| 8 | |
An unrecorded credit memo for collection of a note should be: |
| | A) | ignored |
| | B) | subtracted from the checkbook balance |
| | C) | added to the checkbook balance |
| | D) | added to the bank balance |
| | E) | None of the above |
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| 9 | |
Electronic funds transfer: |
| | A) | Uses paper checks |
| | B) | Uses some paper checks |
| | C) | Does not use paper checks |
| | D) | Is a manual transfer system |
| | E) | None of the above |
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| 10 | |
A credit from a bank: |
| | A) | Lowers checkbook balance |
| | B) | Is done only monthly |
| | C) | Means balance will increase |
| | D) | Is done only manually |
| | E) | None of the above |
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| 11 | |
The bank statement for Mat Co. revealed a balance of $900 while the checkbook balance showed $1.420. Checks outstanding totaled $35. A check printing charge for $5.00 was on the bank statement. There was a $50 NSF shown on the bank statement. There was a $500 deposit in the transit. What is the reconciled balance? |
| | A) | $1,045 |
| | B) | $1,095 |
| | C) | $1,040 |
| | D) | $1,545 |
| | E) | None of the above |
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| 12 | |
The checkbook balance of Roger Co. is $681.54. The bank statement reveals a balance of $2,111.28. The bank statement showed interest earned of $61, and a service charge of $59.64. There is a deposit in transit of $2,279.11. Outstanding checks totaled $881.45. The bookkeeper in further analyzing the bank statement noticed a collection of a note by bank for $3,140. Roger Co. forgot to deduct a check for $313.96 during the month. The reconciled balance is: |
| | A) | $3,386.95 |
| | B) | $3,950.82 |
| | C) | $3,805.49 |
| | D) | $3,508.94 |
| | E) | None of the above |
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| 13 | |
The bank statement of Royce Co. indicated a current balance of $29,000.10. The current checkbook balance indicated a balance of $24,528.10. In the reconciliation process a deposit in transit for $2,543.02 was discovered. Check number 453 for $6,936.32 was outstanding. The statement also revealed a NSF of $89.40 along with interest earned by Royce of $168.10. The reconciled balance is: |
| | A) | $22,063.78 |
| | B) | $22,231.88 |
| | C) | $24,606.80 |
| | D) | $26,457.08 |
| | E) | None of the above |
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| 14 | |
The bank statement of June 30 for Russell Co. Showed a balance of $5,154.32 while the checkbook showed a balance of $1,600.10. The bookkeeper of Russell Co. noticed from the bank statement the bank had collected a note for $958.10. There was a deposit in transit made on June 1 for $2,182.90 along with the outstanding checks of $4,821.82. Check charges were $42.80. The reconciled balance is: |
| | A) | $2,515.04 |
| | B) | $2,510.54 |
| | C) | $2,515.40 |
| | D) | $2,557.90 |
| | E) | None of the above |
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| 15 | |
The checkbook balance of Roger Co. is $982.50. The bank statement reveals a balance of $1,051.82. The bank statement showed interest earned of $3.82, a service charge of $15.00, along with a deposit in transit of $210.00. Outstanding checks totaled $270.50. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $200. Roger Co. forgot to deduct a check for $180 during the month. The reconciled balance is: |
| | A) | $831.32 |
| | B) | $991.32 |
| | C) | $831.23 |
| | D) | $991.23 |
| | E) | None of the above |
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