1. All cash receipts are deposited intact, and all cash disbursements are made by means of check.
This internal control is known as --
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a. Administrative control
b. Imprest system
c. Accounting control
d. Auditing control
 
Correct answer
b. Imprest system

 
2. Entries to record the replenishment of petty cash fund results in a debit to various expense
accounts and a credit to cash in bank. This accounting procedures typically exemplifies --
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a. Imprest petty cash system
 
b. Fluctuating petty cash system
c. Internal control
d. Administrative control

 
3. A cash short or over account --
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a. Is not generally accepted
b. Is debited when the petty cash fund proves out over
c. Is debited when the petty cash fund proves out short
 
d. Is a contra account to cash

 
4. Bank reconciliation -
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a. Is the process of transferring money in or out of a bank account.
b. Requires that every transaction which will result in a cash payment be verified, approved and recorded before
a bank check is prepared.
c. Is an analysis that reflects the bank transactions made by the depositor
d. Explains the difference between the bank balance and the balance shown in the depositor’s records.
 
 
5. The journal entries for bank reconciliation -
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a. are taken from the balance per bank only
b. may include a debit to office expense for bank service charges
 
c. may include a credit to accounts receivable for an NSF check
d. may include a debit to accounts payable for an NSF check

 
6. When preparing a bank reconciliation, bank credits are -
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a. Added to the bank statement balance
b. Deducted from the bank statement balance
c. Added to the balance per book
 
d. Deducted from the balance per book

 
7. Bank reconciliations are normally prepared monthly to identify adjustments in the depositor’s
records and to identify errors. Adjustments should be recorded by the depositor for --
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a. Bank errors, outstanding checks and deposits in transits
b. All items, except bank errors, outstanding checks and deposits in transits
 
c. Book errors and bank errors
d. Bank service charges, NSF checks, outstanding checks and deposits in transits

 
8. In preparing its bank reconciliation for the month of February. Orange Company has available the
following information:
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18,160
 
Correct answers

18,400
Correct Answer

 
9. The In preparing the bank reconciliation of Royal Company for the month of July, the following
information is available:
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54,450
 
 
10. In preparing its August 31, 2017 bank reconciliation, Energy Corp. has made available the
following information:
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55,650
 
 
11. An organization is reconciling its bank statement with its internal records. The cash balance per
bank statement is P 12,000 while the cash balance per company books is P 10,800. There are
P1,200 of bank charges that are not yet recorded, 1,800 of outstanding checks, P 3,000 of deposits
in transit, and P 3,600 of bank credits and collections not yet recorded in the company’s books. If
there are no bank or book errors, what is the correct cash balance?
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13,200
 
 
12. Monarch Company had the following bank reconciliation on March 31.
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89,200