Question

Outstanding checks haven't been presented to the bank for payment but have been subtracted in the checkbook. have been subtracted on the bank records but not the checkbook records. have been returned to the business for nonpayment. haven't been presented to the bank for payment and haven't been subtracted from the checkbook. Question 2 (5 points)

Answer 1

Ans 1 Outstanding checks are the checks which had been written by the entry but the same has not been presented by the check holder to the bank for payment. Due to this the balance as per cashbook is lower as compared to balance as per bank statement. Hence, the same is being reduced from the bank balance in the bank reconciliation statement. The correct answer will be "haven't been presented to the bank for payment and have been subtracted in the checkbook Ans 2 Bank Reconciliation is a process of identifying the difference that exist between the company's bank balance as per bank statement supplied by bank and cash balance as per company's accounting records. Bank Reconciliation April 30 Particulars Amount Amount Bank Balance $2,000 Add: Deposit in Transit $2,500 $2,500 $4,500 Deduct: Outstanding Checks Total Deduction $1,500 ($1,500) Adjusted Bank Balance $3,000 Cash Balance $3,250 Deduct $205 NSF Check Bank Service Charge Total Deduction $45 ($250) Adjusted Book Balance $3,000 The correct answer "$3000"

Particulars Treatment in Bank reconciliation Ans 3 Added to Company's Bank Balance Note Collected by the Bank Added to Company's Book Balance Deducted to Company's Book Balance Deducted to Company's Bank Balance Deposit in Transit Bank Service Charges Check Outstanding The correct answer is "Note Collected by the Bank" Ans 4 Advantage of online banking Convenience Can be done anytime and from any where Transaction speed : Is very high as compared to traditional system of check writing. In check system, the check is to be signed, then deposit in the bank and then bank send the same for clearing which takes a lot of time before clearance of the check whereas in online these all activities can be done at a click of keypad only. Effective Is very effective because of many checks had been made by the banks The correct answer is "All the above"