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Multiple Choice Quiz 2
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1
A drawer is the person who writes the check.
A)True
B)False
2
The drawee is the person the bank is ordered to pay.
A)True
B)False
3
A blank endorsement is as safe as the restrictive endorsement.
A)True
B)False
4
A deposit in transit has not reached the bank for processing by the time the bank statement was prepared.
A)True
B)False
5
All checking accounts require a minimum balance to avoid interest costs.
A)True
B)False
6
Service charges result in a bank crediting one's account.
A)True
B)False
7
EFT avoids:
A)using computers
B)is never used today
C)requires a manual procedure
D)using paper checks
E)None of the above
8
An unrecorded deposit at an ATM 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
9
A credit from a bank:
A)lowers the checkbook balance
B)is done only monthly
C)means the checkbook balance will increase
D)is done only manually
E)None of the above
10
The ATM
A)always has a change
B)can handle both deposits as well as withdrawls
C)can be a free service only at the beginning of the month
D)has a $300 maximum withdrawal limit
11
The bank statement for Lee Co. revealed a balance of $1,200 while the checkbook balance showed $1,600. Checks outstanding totaled $50. A check printing charge for $7.00 was on the bank statement. There was a $100 NSF shown on the bank statement. There was a $600 deposit in transit. What is the reconciled balance?
A)$1,493
B)$1,750
C)$1,439
D)$1,705
E)None of the above
12
The checkbook balance of Blue Co. is $799.50. The bank statement reveals a balance of $2,300.18. The bank statement showed interest earned of $20, and a service charge of $16.55. There is a deposit in transit of $2,500.20. Outstanding checks totaled $322.53. The bookkeeper noticed a collection of a note by the bank for $4,000. Blue Co. forgot to deduct a check for $325.10 during the month. The reconciled balance is:
A)$4,4477.58
B)$4,427.85
C)$4,127.75
D)$4,477.85
E)None of the above
13
The bank statement of Lee Co. indicated a current balance of $30,100.50. The current checkbook balance indicated a balance of $28,510.88. In the reconciliation process a deposit in transit for $2,100.38 was discovered. Check number 561 for $3,000.10 was outstanding. The statement also revealed a NSF of $90.10 along with a note collected by the bank of $780. The reconciled balance is:
A)$29,02.78
B)$29,029.80
C)$29,200.78
D)$29,200.87
E)None of the above
14
The bank statement of June 30 for Lou Co. showed a balance of $1,795.10 while the checkbook showed a balance of $6,188.22. The bookkeeper of Lou Co. noticed from the bank statement the bank had collected a note for $1,200.10. There was a deposit in transit made on June 1 for $6,000.10 along with outstanding checks of $449.68. Check charges were $42.80. The reconciled balance is:
A)$7,195.10
B)$7,345.25
C)$7,345.52
D)$7,435.25
E)None of the above
15
The checkbook balance of Mia Co. is $1,200.66. The bank statement reveals a balance of $1,100.10. The bank statement showed interest earned of $6.50, a service charge of $20.00, along with a deposit in transit of $1,600.20. Outstanding checks totaled $1,413.14. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $400. Mia Co. forgot to deduct an ATM withdrawal during the month of $300. The reconciled balance is:
A)$1,587.16
B)$1,287.16
C)$1,278.61
D)$1,287.51
E)None of the above





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