Bank Reconciliation(Quick Test #2)

1. Reconciling the bank statement is a procedure that can improve a company’s internal __________.

2. Checks written by a company but not yet clearing its bank checking account are referred to as __________ checks.

3. Checks received from customers on December 31, but not deposited until January 2 are referred to as deposits __________ __________.

4. Recording $980 as $890 is known as a __________ error.

5. Endorsing checks received with “Pay to the order of First Bank” or “For Deposit Only” are known as __________ endorsements.

6. The checks that have been paid by the bank and appear on the bank statement are said to have __________ the bank.

7. EFT is the acronym for __________ funds transfer.

8. The __________ deposit of an employee’s pay into the employee’s bank account and the __________ deposit of payroll taxes to the federal and state governments are examples of EFTs.

9. The acronym for a check returned because of insufficient funds is __________.

10. The name appearing on the front of a check after the words “Pay to the order” is the __________.

11. A check is __________ on the bank whose name appears on the check.

12. An order given to the bank by a checking account customer instructing the bank not to pay a specific check is a __________ __________ order.

13. A company wrote a check for $98, but recorded it as $89 in its accounting records. In the bank reconciliation the $9 difference will be __________ __________ __________ the balance per books.

14. A company recorded a deposit as $45, but the actual deposit was $54. In the bank reconciliation the $9 difference will be __________ __________ __________ the balance per books.

15. Outstanding checks may explain why a company’s book balance is __________ than the balance shown on its bank statement.

16. In a bank reconciliation, which checks will be deducted to arrive at the adjusted or correct balance per books?

17. Checks received from customers on December 31 but not deposited until the next day should be reported as __________ as of December 31.

18. Voiding a check that has been outstanding for several months will increase the adjusted balance per __________.

19. Which of the following does not describe canceled checks?

20. Deposits in transit are the same as __________.

21. Having the person who writes and signs checks also reconcile the bank statement is __________ internal control.

22. A bank debit memo listed on the bank statement will be recorded as __________ __________ to the balance per books.

23. Which item will result in a credit to the Cash account?

24. A journal entry is necessary for the items noted as adjustments to the balance per __________.

25. A company’s bank statement shows a balance of $1,234 on December 31. The company’s general ledger shows a balance of $658. The bank statement reports a service charge of $14. The amount of outstanding checks is $590. The adjusted or correct cash balance to be reported on the balance sheet for this account is $__________.