Question 1 Of 20: Outstanding Checks Have Been Subtracted

Question 1 Of 20outstanding Checksa Have Been Subtracted On The Bank

Question 1 of 20 Outstanding checks A. have been subtracted on the bank records but not the checkbook records. B. haven’t been presented to the bank for payment and haven’t been subtracted from the checkbook. C. haven’t been presented to the bank for payment but have been subtracted in the checkbook. D. have been returned to the business for nonpayment.

Question 2 of 20 A restrictive endorsement on a check A. can be further endorsed by someone else. B. is the safest endorsement for businesses. C. permits the bank to use its best judgment. D. None of the above

Question 3 of 20 Endorsing a check A. guarantees payment. B. transfers the right to deposit or transfer cash. C. cancels the transaction. D. All of the above

Question 4 of 20 Checks that have been processed by the bank and are no longer negotiable are A. outstanding checks. B. canceled checks. C. checks in process. D. blank checks.

Question 5 of 20 If the bank charged another company’s check against Shoe Depot’s account, this would be included on the bank reconciliation as a/an A. addition to the balance per books. B. subtraction from the balance per books. C. addition to the balance per bank. D. subtraction from the balance per bank.

Question 6 of 20 The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,980. Other information includes the following: · A check for $200 to pay the electric bill was recorded on the books as $20. · Included on the bank statement was a note collected by the bank for $400 plus interest of $30. · Checks outstanding totaled $260. · Bank service charges were $50. · Deposits in transit were $2,140. The adjusted cash balance at the end of August should be A. $9,810. B. $7,620. C. $7,980. D. $8,180.

Question 7 of 20 Advantages of online banking include A. convenience. B. transaction speed. C. effectiveness. D. All of the above

Question 8 of 20 A bank service charge would be included on the bank reconciliation as a/an A. addition to the balance per books. B. subtraction from the balance per books. C. addition to the balance per bank. D. subtraction from the balance per bank.

Question 9 of 20 How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? A. They would be added to the balance of the bank statement. B. They would be subtracted from the balance of the bank statement. C. They would be added to the balance per books. D. They would be ignored.

Question 10 of 20 Using the following information, determine the adjusted cash balance per bank for Santa’s Packaging on November 30. Cash balance on the bank statement $2,350 Customer’s check returned—NSF 500 Customer’s note collected by the bank 600 Deposits in transit, November ,400 Outstanding checks, November ,650 A. $1,250 B. $1,100 C. $1,550 D. $1,350

Question 11 of 20 The drawee is the A. person who writes the check. B. bank with which the drawer has an account. C. person to whom the check is payable. D. person who reconciles the account.

Question 12 of 20 Which of the following bank reconciliation items would be reflected in a journal entry? A. Error made by the bank B. Outstanding checks C. Bank service charges D. Deposit in transit

Question 13 of 20 Which item should be added to the company’s book balance during the bank reconciliation? A. Deposit in transit B. Check outstanding C. Bank service charge D. Note collected by the bank

Question 14 of 20 The first two numbers of the ABA code listed on the check represent the A. Federal Reserve District. B. check number. C. routing number. D. account number.

Question 15 of 20 The check is written and signed by the A. drawer. B. drawee. C. payee. D. payer.

Question 16 of 20 A bank statement includes bank charges. On the bank reconciliation, the item is a/an A. addition to the balance per company books. B. addition to the balance per bank statement. C. deduction from the balance per bank statement. D. deduction from the balance per company books.

Question 17 of 20 Scotch Services received a credit memorandum from the bank. During the bank reconciliation, it should A. increase its cash account on the company’s books. B. decrease its cash account on the company’s books. C. increase the ending cash balance on the bank statement. D. decrease the ending cash balance on the bank statement.

Question 18 of 20 Internal control over a company’s assets should include which of the following? A. Responsibilities and duties of employees will be divided. B. All cash receipts will be deposited into the bank the same day they arrive. C. All cash payments will be made by check (except petty cash). D. All of the above

Question 19 of 20 A blank endorsement on a check A. can be further endorsed by someone else. B. cannot be further endorsed by someone else. C. is the safest type of endorsement. D. permits only the original endorser to get the money.

Question 20 of 20 A full endorsement on a check A. is the same as a blank endorsement. B. can be endorsed only by the person or company named in the original endorsement. C. is the safest endorsement for businesses. D. None of the above

Question 1 Of 20outstanding Checksa Have Been Subtracted On The Bank

Outstanding checks are checks that have been issued by a company but have not yet cleared the bank. They are deducted from the company's checkbook balance but have not been subtracted from the bank's records because the bank has not yet processed these checks. Recognizing outstanding checks during bank reconciliation helps ensure that the company's cash records match the bank statement, accounting for timing differences in check processing.

Paper For Above instruction

Outstanding checks are a crucial component of bank reconciliations, representing checks issued by a company but not yet cleared by the bank. They are deducted from the checkbook balance to reconcile the company's internal records with the bank statement. These checks are typically recorded in the company's books at the time of issuance but remain pending until the bank processes them, often causing temporary discrepancies between the bank's and the company's balances. Properly managing outstanding checks ensures accurate financial reporting and internal control. They are vital for understanding cash flow timing and maintaining financial accuracy, especially when preparing financial statements, detecting fraudulent activity, or conducting internal audits. Recognizing outstanding checks aids in preventing overdrafts, ensuring that the actual cash available matches the recorded balance, and maintains the integrity of financial data. Accounting for outstanding checks during reconciliation aligns accounting practices with banking procedures, reinforcing trustworthiness in financial documentation. This process involves comparing the company's ledger with bank statements, identifying checks issued but not yet cleared, and adjusting balances accordingly to reflect the true cash position.

References

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