QUESTION 23 On the bank reconciliation, deposits in transit should be:

QUESTION 23

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

QUESTION 24

1. On a bank reconciliation, you adjust for a customer's NSF check by:
2. increasing the bank balance by the amount of the NSF check
3. reducing the bank balance by the amount of the NSF check
4. increasing the book balance by the amount of the NSF check
5. reducing the book balance by the amount of the NSF check

QUESTION 25

1. The bank statement balance of $7,850 does not include $1,200 in checks outstanding and $750 deposits in transit. When the bank balance is adjusted, it will be:
2. $7,415
3. $7,385
4. $7,850
5. $7,400
6. $8,300

QUESTION 26

1. When creating a trial balance, the accounts are listed in which order?
2. Assets, Liabilities, Revenue, Equity, Expenses
3. Alphabetical by account title
4. Assets, Expenses, Equity, Liabilities, Revenue
5. Assets, Liabilities, Expenses, Revenue, Equity
6. Assets, Liabilities, Equity, Revenue, Expenses

QUESTION 28

1. During the bank reconciliation, you realize that the bank deposited another company's funds into your account. To adjust for this error, you must:
2. increase the book balance by the amount of the deposit
3. increase the bank balance by the amount of the deposit
4. reduce the book balance by the amount of the deposit
5. reduce the bank balance by the amount of the deposit

QUESTION 29

1. If a trial balance is in balance, it means there are no errors within the accounting records.
2.  True
3.  False

QUESTION 30

1. While reviewing a trial balance, you notice the following account balances. Which one is likely to be an error?
2. Account Payable with a credit balance of $6,600
3. Account Receivable with a debit balance of $4,000
4. Accumulated Depreciation with a debit balance of $8,000
5. Allowance for Doubtful Accounts with a credit balance of $200
6. Inventory with a debit balance of $43,000