Question

wme following would be added to the balance per bank on a bank reconciliation? 8. Which of the following would be added to the ba a. Outstanding checks b. Deposits in transit c. Notes collected by the bank d. Service charges 9. A check returned by the bank marked "NSF" means a. no service fee. b. no signature found c. not satisfactorily filled out. d. not sufficient funds. 10. Deposits in transit a. have been recorded on the company's books but not yet by the bank. b. have been recorded by the bank but not yet by the company. c. have not been recorded by the bank or the company. d. are customers' checks that have not yet been received by the company. 11. In preparing a bank reconciliation, outstanding checks are a. added to the balance per bank. b. deducted from the balance per books. c. added to the balance per books. d. deducted from the balance per bank. 12. If a check correctly written and paid by the bank for $626 is incorrectly recorded on the company's books for $662, the appropriate treatment on the bank reconciliation would be to a. add $36 to the book's balance. b. subtract $36 from the book's balance. c. deduct $36 from the bank's balance. d. deduct $626 from the book's balance. 13. Accounts receivable are valued and reported on the balance sheet: a. in the investment section. b. at gross amounts less sales returns and allowances. c. at net realizable value. d. only if they are not past due. 14. The account Allowance for Doubtful Accounts is classified as a(n) a. liability b. contra account of Bad Debt Expense. c. expense. d. contra account to Accounts Receivable. 15. Two methods of accounting for uncollectible accounts are the: a. allowance method and the accrual method.

Answer 1

8. b. deposits in transit do service charges 9. Not sufficient funds 10. have been recorded on the company's books but not yet by the Bank. 11 a added to the balance perbank b. deducted from the balance per book, 12. b. subtract $36 from book's balance. 13 at gross value less sales retions and allowances, 14. с. €реме.