Question 1

In the reconciliation process the unrecorded bank service charge is:

Accepted Answer

A)  Added to checkbook balance
B)  Deducted from checkbook balance
C)  Added to bank statement balance
D)  Deducted from bank statement balance
E)  None of theseF) B) and D)
G) A) and E)

Question 2

The payee is the person to whom the check is payable.

Accepted Answer

A) True 
 B)False

Question 3

On December 31, the checkbook balance of Ray Co. was $5,420.95. The bank statement balance showed $5,102.88. Checks outstanding totaled $813.53. The statement did not show a deposit in transit of $1,102.95. Check charges were $15.88. The company earned interest income of $29.32 that was shown on the report. The bookkeeper forgot to record a check for $42.09. The reconciled balance is:

Accepted Answer

A)  $5,392.30
B)  $5,923.03
C)  $5,932.03
D)  $5,392.03
E)  None of theseF) All of the above
G) C) and D)

Question 4

A check stub is completed after the check is written so records will be up to date.

Accepted Answer

A) True 
 B)False

Question 5

Match the following terms with their definitions.
-Deposits in transit

Accepted Answer

A)  Document that records deposit
B)  Added to bank balance
C)  Used in mobile banking
D)  Automatic teller machines
E)  One to receive amount of checkF) Bank adds to your accountG) Record keeping deviceH) Bounced checkI) Check must be deposited to payee's accountJ) A report sent by bankK) Total credit card sales minus credit accountsL) Identifies to whom check is to be transferredM) Bank is charging your accountN) No restrictionsO) One who writes a checkP) Eliminates the use of paper checksQ) Signing back of checksR) Comparing bank balance to checkbook balanceS) Not processed by bank yetT) G) and I)
U) B) and K)

Question 6

Citizen Bank sent a bank statement to Bane Co. showing an ending balance of $1,480. On the bank statement there was a service charge of $20. The bookkeeper of Bane Co. noticed in the reconciliation process a deposit in transit of $200 along with checks outstanding of $300. Complete the reconciliation for Bane assuming a beginning balance of $1,400.

Accepted Answer

A)  $1,830.00
B)  $1,138.00
C)  $1,380.00
D)  $1,360.00
E)  None of theseF) None of the above
G) C) and E)

Question 7

Online banking

Accepted Answer

A)  Is never accepted by all banks
B)  Still holds checks for 10 days
C)  Is usually safe
D)  Is very unsafe
E)  None of theseF) A) and B)
G) B) and D)

Question 8

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

Accepted Answer

\[\begin{array} { r r }
\text { Book } ...

Question 9

Debbie's checkbook balance was $2,715.50. She wrote checks totaling $5,298.13 during the month of May. Deposits made during the month were $250.16 on May 1. On May 15, her payroll check was electronically processed for $2980.66; on May 22, a check from the IRS was electronically processed for $2,550. On May 27, she recorded $534.10 for payments debited to her account for auto insurance and utilities. What is her checkbook balance?

Accepted Answer

$2,715.50 +   $$250.16 ...

Question 10

On Dec. 31 the checkbook balance of Aster Co. was $1,241.05. The bank statement balance was $1,510. Checks outstanding were $3,052.03. The statement revealed a deposit in transit of $2,800.10 as well as a bank service charge of $12.03. The company earned interest income of $29.05. Complete a bank reconciliation for Aster Co.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> $1,241.05 + $29.05 ...

Question 11

NSF results in a bank crediting one's account.

Accepted Answer

A) True 
 B)False

Question 12

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

Accepted Answer

A) True 
 B)False

Question 13

Deposits in transit are the result of outstanding checks.

Accepted Answer

A) True 
 B)False

Question 14

Checks written that do not appear on your bank statement are:

Accepted Answer

A)  Paid from the previous month
B)  Not written correctly
C)  Appear as a deposit
D)  Credited to savings
E)  None of theseF) A) and E)
G) C) and E)

Question 15

Match the following terms with their definitions.
-Net deposit

Accepted Answer

A)  Document that records deposit
B)  Added to bank balance
C)  Used in mobile banking
D)  Automatic teller machines
E)  One to receive amount of checkF) Bank adds to your accountG) Record keeping deviceH) Bounced checkI) Check must be deposited to payee's accountJ) A report sent by bankK) Total credit card sales minus credit accountsL) Identifies to whom check is to be transferredM) Bank is charging your accountN) No restrictionsO) One who writes a checkP) Eliminates the use of paper checksQ) Signing back of checksR) Comparing bank balance to checkbook balanceS) Not processed by bank yetT) O) and R)
U) A) and F)

Question 16

ATMs have completely replaced the need for tellers.

Accepted Answer

A) True 
 B)False

Question 17

From the following calculate the final balance that was to be carried forward in your check stubs as of the end of October:
Oct. 1 Beg. Balance $1,200.50
Oct. 8 Deposit $300.00
Oct. 12 Check written to Bloom Co. $382.65
Oct. 16 Deposit $400.00
Oct. 28 Check written to Flex Co. $185.99
Oct. 31 Check written to Ryan Co. $88.92

Accepted Answer

Add the deposits and...

Question 18

Outstanding checks:

Accepted Answer

A)  Have been paid by the bank
B)  Are checks returned to the payer
C)  Are bank checks
D)  Have not been received by the bank for processing
E)  None of theseF) B) and D)
G) A) and D)

Question 19

Match the following terms with their definitions.
-Restrictive endorsement

Accepted Answer

A)  Document that records deposit
B)  Added to bank balance
C)  Used in mobile banking
D)  Automatic teller machines
E)  One to receive amount of checkF) Bank adds to your accountG) Record keeping deviceH) Bounced checkI) Check must be deposited to payee's accountJ) A report sent by bankK) Total credit card sales minus credit accountsL) Identifies to whom check is to be transferredM) Bank is charging your accountN) No restrictionsO) One who writes a checkP) Eliminates the use of paper checksQ) Signing back of checksR) Comparing bank balance to checkbook balanceS) Not processed by bank yetT) B) and D)
U) B) and I)

Exam 4: Banking

NSF results in a bank crediting one's account.

Correct Answer
verified

Correct Answer
verified
$1,241.05 + $29.05 ...
View Answer

A check stub is completed after the check is written so records will be up to date.

Correct Answer
verified

Checks written that do not appear on your bank statement are:

Correct Answer
verified

Online banking

Correct Answer
verified

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

Correct Answer
verified

Correct Answer
verified

Match the following terms with their definitions. -Restrictive endorsement

Correct Answer
verified

In the reconciliation process the unrecorded bank service charge is:

Correct Answer
verified

Correct Answer
verified
$2,715.50 + $$250.16 ...
View Answer

Outstanding checks:

Correct Answer
verified

The payee is the person to whom the check is payable.

Correct Answer
verified

ATMs have completely replaced the need for tellers.

Correct Answer
verified

Correct Answer
verified
Add the deposits and...
View Answer

Correct Answer
verified

Deposits in transit are the result of outstanding checks.

Correct Answer
verified

Match the following terms with their definitions. -Deposits in transit

Correct Answer
verified

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

Correct Answer
verified
\[\begin{array} { r r }
\text { Book } ...
View Answer

Match the following terms with their definitions. -Net deposit

Correct Answer
verified

Exam 4: Banking

NSF results in a bank crediting one's account.

Correct AnswerverifiedShow Answer

Correct Answerverified $1,241.05 + $29.05 ...View AnswerShow Answer

A check stub is completed after the check is written so records will be up to date.

Correct AnswerverifiedShow Answer

Checks written that do not appear on your bank statement are:

Correct AnswerverifiedShow Answer

Online banking

Correct AnswerverifiedShow Answer

Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match the following terms with their definitions. -Restrictive endorsement

Correct AnswerverifiedShow Answer

In the reconciliation process the unrecorded bank service charge is:

Correct AnswerverifiedShow Answer

Correct Answerverified $2,715.50 + $$250.16 ...View AnswerShow Answer

Outstanding checks:

Correct AnswerverifiedShow Answer

The payee is the person to whom the check is payable.

Correct AnswerverifiedShow Answer

ATMs have completely replaced the need for tellers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAdd the deposits and...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Deposits in transit are the result of outstanding checks.

Correct AnswerverifiedShow Answer

Match the following terms with their definitions. -Deposits in transit

Correct AnswerverifiedShow Answer

John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

Correct Answerverified\[\begin{array} { r r } \text { Book } ...View AnswerShow Answer

Match the following terms with their definitions. -Net deposit

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
$1,241.05 + $29.05 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$2,715.50 + $$250.16 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Add the deposits and...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
\[\begin{array} { r r }
\text { Book } ...
View Answer

Correct Answer
verified