QUESTION 1 During a bank reconciliation, it is discovered that a deposit has been recorded by the bank, but it is not in the company's records. On...

QUESTION 1

1. During a bank reconciliation, it is discovered that a deposit has been recorded by the bank, but it is not in the company's records. On the reconciliation, this deposit should be:
2. Deducted from the book side
3. Added to the bank side
4. Deducted from the bank side and added to the book side
5. Deducted from the bank side
6. Added to the book side

QUESTION 2

1. On the bank reconciliation, outstanding checks should be:
2. Deducted from the book side
3. Added to the book side
4. Deducted from the bank side and added to the book side
5. Deducted from the bank side
6. Added to the bank side

QUESTION 3

1. The bank statement shows a balance of $7,000. Comparison of the bank statement to the depositor records shows an outstanding check of $1,000 and a deposit in transit of $275. In addition, it is discovered that another company's $250 check has been erroneously charged against your firm's account. The reconciled bank balance is:
2. $7,475
3. $6,025
4. $6,525
5. $6,275
6. $6,250

QUESTION 4

1. Your company writes a check for the correct amount of $123, but records it in the ledger as $132. To adjust for this in a bank reconciliation, you would:
2. increase the bank balance by $9
3. increase the book balance by $9
4. reduce the book balance by $9
5. reduce the bank balance by $9

QUESTION 7

1. The unadjusted trial balance shows total debits of $66,000 and total credits of $68,600. If there is only one type of error, which type would you look for?
2. Transposition
3. Misclassification
4. Slide
5. Doubling

QUESTION 8

1. After completing the bank reconciliation, journal entries are required:
2. only for adjustments made to the bank side
3. for adjustments made to the book side and for adjustments made to the bank side
4. only for adjustments made to the book side

QUESTION 9

1. Which of these errors is easiest to find and correct?
2. Failure to record a transaction
3. Crediting Sales Revenue instead of Account Receivable for a payment
4. Common Stock has a balance listed in the debit column of the trial balance
5. Incorrect estimation of bad debts expense
6. Incorrect computation of the Interest Expense accrual

QUESTION 10

1. A trial balance may reveal:
2. a classification error
3. a bank reconciliation error
4. an omission error
5. a transposition error