Accounting 201 - Chapter 4

31 Questions | Total Attempts: 327

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Accounting Quizzes & Trivia

There are some rules that every accountant should follow when preparing financial statements and are laid down in form of concepts. Are you familiar with the basic accounting concepts we covered in the previous class? Take up this quiz and see which one you did not grasp fully. All the best!


Questions and Answers
  • 1. 
    When preparing a bank reconciliation, which of the following items should be subtracted from the bank balance?
    • A. 

      Deposits in transit

    • B. 

      Bank service charges

    • C. 

      EFT cash receipts

    • D. 

      Outstanding checks

  • 2. 
    When preparing a bank reconciliation, which of the following items should be added to the book balance?
    • A. 

      EFT receipts

    • B. 

      Deposits in transit

    • C. 

      Collection items

    • D. 

      Both EFT receipts and collection items

  • 3. 
    The checks that have been paid by the bank on behalf of the depositor, which are included with the bank statement, are called:
    • A. 

      Outstanding checks

    • B. 

      Canceled checks

    • C. 

      Checks in transit

    • D. 

      NSF checks

  • 4. 
    • A. 

      Errors in the accounting process by the company

    • B. 

      Errors made by the bank

    • C. 

      Differences between the cash basis and accrual basis of accounting

    • D. 

      The timing difference in recording transactions

  • 5. 
    Which of the following items will cause a difference between the book balance and the bank balance
    • A. 

      Timing deposits

    • B. 

      Bank collections

    • C. 

      Canceled checks

    • D. 

      Outstanding voided checks

  • 6. 
    A bank charge of $40 for imprinting checks would appear on the bank reconciliation as a(n) __________ to (or from) the _____ balance.
    • A. 

      Addition; bank

    • B. 

      Deduction; bank

    • C. 

      Addition; book

    • D. 

      Deduction; book

  • 7. 
    Herbert Company deposited $25,000 in its bank on the same day as—but after—the bank prepared Herbert Company’s bank statement.  The deposit should appear on the bank reconciliation as a(n) __________ and is called a(n) __________.
    • A. 

      Addition to the bank balance; outstanding deposit

    • B. 

      Addition to the bank balance; deposit in transit

    • C. 

      Deduction to the bank balance; deposit in transit

    • D. 

      Deduction to the bank balance; outstanding deposit

  • 8. 
    • A. 

      Deductions from the bank balance; checks in transit

    • B. 

      Deductions from the bank balance; outstanding checks

    • C. 

      Additions to the bank balance; checks in transit

    • D. 

      Additions to the bank balance; check items

  • 9. 
    In a bank reconciliation, a NSF check is
    • A. 

      Added to the bank balance

    • B. 

      Added to the book balance

    • C. 

      Deducted from the book balance

    • D. 

      Deducted from the bank balance

  • 10. 
    In a bank reconciliation, an EFT cash receipt is
    • A. 

      Added to the bank balance

    • B. 

      Added to the book balance

    • C. 

      Deducted from the book balance

    • D. 

      Deducted from the bank balance

  • 11. 
    In a bank reconciliation, an EFT cash payment is
    • A. 

      Added to the bank balance

    • B. 

      Added to the book balance

    • C. 

      Deducted from the book balance

    • D. 

      Deducted from the bank balance

  • 12. 
    Interest paid by the bank to a company’s account should appear on the bank reconciliation as
    • A. 

      Added to the bank balance

    • B. 

      Added to the book balance

    • C. 

      Deducted from the book balance

    • D. 

      Having no impact on the book balance

  • 13. 
    A bank collected $200 on behalf of its customer.  The $200 should appear on the bank reconciliation as
    • A. 

      Added to the bank balance

    • B. 

      Added to the book balance

    • C. 

      Deducted from the book balance

    • D. 

      Having no impact on the book balance

  • 14. 
    In a bank reconciliation, items recorded by the company, but not yet been recorded by the bank, include
    • A. 

      Interest

    • B. 

      Outstanding checks

    • C. 

      NSF checks

    • D. 

      Bank service charges

  • 15. 
    In a bank reconciliation, items recorded by the bank, but not yet recorded by the company, include
    • A. 

      Deposits in transit

    • B. 

      Bank collections

    • C. 

      Outstanding checks

    • D. 

      Both deposits in transit and outstanding checks

  • 16. 
    The person who prepares the bank reconciliation
    • A. 

      Should also be responsible for cash receipts

    • B. 

      Should also be responsible for cash disbursements

    • C. 

      Should be responsible for both cash receipts and cash disbursements.

    • D. 

      Should have no other cash duties

  • 17. 
    If a bookkeeper mistakenly records a disbursement as $810 instead of the correct amount of $180, the error should be shown on the bank reconciliation as a(n):
    • A. 

      $180 addition to the books

    • B. 

      $180 deduction from the books

    • C. 

      $630 addition to the books

    • D. 

      $630 deduction from the books

  • 18. 
    If the bank records a deposit of $1,500 as $150, the error should be shown on a bank reconciliation as a(n):
    • A. 

      Deduction from the book balance of $1,350

    • B. 

      Deduction from the bank balance of $1,350

    • C. 

      Addition to the bank balance of $1,350

    • D. 

      Addition to the book balance of $1,350

  • 19. 
    There are two records of a business’s cash—the
    • A. 

      Cash account in the general ledger and the petty cash box

    • B. 

      Cash account in the general ledger and the journal entries from the bank reconciliation.

    • C. 

      Bank statement and the cash account in the general ledger

    • D. 

      Bank statement and the cash in petty cash

  • 20. 
    The bank statement showed a NSF check of $300.  In a bank reconciliation, this would be shown as a
    • A. 

      $300 deduction from the bank balance

    • B. 

      $300 addition to the bank balance

    • C. 

      $300 deduction from the book balance.

    • D. 

      $300 addition to the book balance

  • 21. 
    A bank reconciliation included an outstanding check of $1,300 for the purchase of supplies. The journal entry to record this reconciling item
    • A. 

      Should debit Supplies and credit Cash for $1,300

    • B. 

      Should debit Cash and credit Supplies for $1,300

    • C. 

      Should debit Accounts Receivable and credit Cash for $1,300

    • D. 

      Is not required

  • 22. 
    A bank statement included a NSF check from customer Kim Fields for $2,100.  The journal entry to record this reconciling item should
    • A. 

      Debit NSF and credit Cash for $2,100

    • B. 

      Debit Cash and credit Accounts Receivable for $2,100

    • C. 

      Debit Accounts Receivable and credit Cash for $2,100

    • D. 

      Debit Cash and credit NSF for $2,100

  • 23. 
    If a bank statement included a bank collection and related interest revenue, the journal entry to record this reconciling item should include a:
    • A. 

      Debit to Cash

    • B. 

      Credit to Cash

    • C. 

      Debit to Note Receivable

    • D. 

      Debit to Note Payable

  • 24. 
    If a bank reconciliation included deposits in transit amounting to $3,700, the journal entry to record this reconciling item:
    • A. 

      Should debit Deposit in Transit and credit Cash for $3,700

    • B. 

      Should debit Cash and credit Deposit in Transit for $3,700

    • C. 

      Should debit Accounts Receivable and credit Cash for $3,700

    • D. 

      Is not required

  • 25. 
    If a bank statement includes an EFT payment of $945 for insurance, the journal entry to record this reconciling item should include a:
    • A. 

      Debit to Cash for $945

    • B. 

      Debit to Accounts Payable for $945

    • C. 

      Credit to Cash for $945

    • D. 

      Credit to Prepaid Insurance for $945

  • 26. 
    The book side of a bank reconciliation includes
    • A. 

      Deposits in transit, bank collections and NSF checks

    • B. 

      NSF checks, bank collections and interest earned on the checking account

    • C. 

      Outstanding checks and deposits in transit

    • D. 

      Outstanding checks, NSF checks and cost of printed checks.

  • 27. 
    Which of the following would need to be journalized from the bank reconciliation
    • A. 

      All items listed under the bank side

    • B. 

      All items listed on the book side

    • C. 

      All items on the book and bank side

    • D. 

      None of the above

  • 28. 
    Cash Sales from the cash register tapes totaled $882. There is a change fund of $100. The cash count indicates that $984 is in the cash drawer. What journal entry would be required?
    • A. 

      Debit Miscellaneous Expense for $2; credit Cash Short and Over for $2

    • B. 

      Debit Cash for $982, Cash* Short and Over for $2; credit Revenues for $984

    • C. 

      Debit Cash Short and Over for $2; credit Miscellaneous Expense $2

    • D. 

      Debit Cash for $884; credit Revenues for $882, and Cash Short and Over for $2

  • 29. 
    The entry to establish the change fund is: DEBIT                                     CREDIT
    • A. 

      Miscellaneous Expense Cash

    • B. 

      Miscellaneous Expense Change Fund

    • C. 

      Change Fund Cash

    • D. 

      Cash Change Fund

  • 30. 
    A fund with a small amount of cash on hand for minor disbursements is called a
    • A. 

      Petty cash fund.

    • B. 

      Miscellaneous expense fund.

    • C. 

      Slush fund

    • D. 

      Cash fund

  • 31. 
    The entry to establish the petty cash fund is: DEBIT                             CREDIT
    • A. 

      Miscellaneous Expense Cash

    • B. 

      Miscellaneous Expense Petty Cash

    • C. 

      Petty Cash Cash

    • D. 

      Cash Petty Cash