Why are bank reconciliations required?

Why are bank reconciliations required?

To help identify any bank errors.

To help ensure the company has completely recorded all cash transactions.

All of the other answers are correct.

To help identify transactions of which the company was previously unaware, such as bank service fees.

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Question 2

1 pts

Which of the following statements about liquidity is correct?

Bankers are concerned about liquidity, but shareholders would not be.

Liquidity considers the long-term viability of a company.

It refers to the ability of a company to meet its short-term obligations.

A company that is profitable will always have strong liquidity.

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Question 3

1 pts

What is the name of the process that management implements to ensure the safety of assets, the reliability of its financial reporting and compliance with relevant laws?

IFRS

Accrual accounting

Internal control

GAAP

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Question 4

1 pts

Which of the following would cause a trial balance to be 'out of balance'?

An entry recorded with only debits.

All of the other answers are correct.

An entry recorded twice.

An entry recorded to the wrong account.

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Question 5

1 pts

A company sells gift certificates to be used by customers for future services. The sale of the gift certificates should be recorded with _________________________ .

a credit to accounts receivable.

a credit to unearned revenue.

a credit to sales revenue.

a debit to sales revenue.

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Question 6

1 pts

If a company writes a cheque to a supplier on November 29th, but it has not cleared the bank account on November 30th, it will appear on the November 30th bank reconciliation as a/an:

deduction from the General Ledger Balance.

addition to the General Ledger Balance

addition to the Bank Balance

deduction from the Bank Balance.

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Question 7

1 pts

Which of the following entry would be the adjusting entry to record earned but unpaid wages for the period?

DR Wages expense, CR Cash

DR Wages expense, CR Wages payable (L)

DR Wages payable (L), CR Wages expense

DR Unearned Wages (L), CR Cash

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Question 8

1 pts

A friend promises to pay you $1,000 in five years. As a result of the concept of the time value of money, this promise has an economic value to you today of _______________ .

exactly $1000.

less than $1000.

more than $1000.

None of the other answers is correct.

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Question 9

1 pts

If the company makes the following journal entry to record bad debt expense, which method of accounting for bad debts is it using?

DR Bad debts expense XXX

CR Allowance for doubtful accounts XXX

The allowance method

The net realisable value method

The direct method

The deferral method

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Question 10

1 pts

Andrew Company sold goods to customers in 2017 at selling price of $1,800,000. 60% of the customers paid on account, and from these, the company collected 80% of amounts owing during 2017. How much cash was collected from customers in 2017?

$864,000

$1,080,000

None of the other answers is correct.

$1,584,000