Which of the following is added to the cash balance per bank statement when preparing a bank
reconciliation statement?
1/1
a. Credit memo
b. Debit memo
c. Outstanding check
d. Deposit in transit
 
 
Under the imprest system of handling petty cash funds, the petty cash fund account is credited
when
1/1
a. disbursement is made out of the fund.
b. the fund is replenished.
c. the fund is not replenished and the fund is adjusted for the disbursements during the period.
 
d. the imprest balance of the fund is increased.

 
The adjusting entry to recognize an expense that has been incurred but not yet paid involves a
debit and a credit to
0/1
a. an asset account and a liability account, respectively.
b. an asset or contra asset account and an expense account, respectively.
 
c. an expense account and a liability account, respectively.
d. a receivable account and a revenue account, respectively.

 
If the Cash Short and Over account has a credit balance at the end of the period and the
investigation for the discrepancy was without merit, the balance would be reported in the financial
statements as
1/1
a. receivable from an employee.
b. loss.
c. other liabilities.
d. other income or gain.
 
 
The overdraft per bank statement of ABC Co. was ₱36,088 as of March 31, 20x1. The following
information was gathered: (a) Interest on overdraft for the quarter ended March 20x1 – ₱1,248 (not
yet entered in cash book). (b)Check deposited with the bank but did not yet clear – ₱4,680. (c)
Check issued but not yet presented for payment – ₱6,110. (d) A check for ₱2,600, discounted with
the bank earlier, was dishonored. ABC Co. is not yet aware of the dishonor. How much is the
overdraft per ABC’s cashbook on March 31, 20x1?
1/1
a. 37,518
b. 43,201
c. 33,670
 
d. 46,370

 
It is a formal record where transactions are initially recorded.
1/1
a. Journal entries
b. Ledger
c. Master file
d. Journal
 
 
Trask Corporation's checkbook balance on December 31, 2001 was ₱8,000. In addition, Trask held
the following items in its safe on December 31: (a) Check payable to Trask Corporation, dated
January 2, 2002, not included in December 31 checkbook balance ₱2,000 (b) Check payable to
Trask Corporation, deposited on December 20 and included in the December 31 checkbook
balance but returned by the bank on December 30, stamped "NSF." The check was redeposited on
Jan. 2, 2002 and cleared on Jan. 7 , ₱400 (c) Post-dated checks not reflected in the checkbook
balance ₱150 (d) Check drawn on Trask Corporation's account, payable to a vendor, dated and
recorded December 31, but not mailed until January 15, 2002, deducted from checkbook balance
₱1,000. What is the proper amount to be shown as cash on Trask's Statement of Financial Position
at December 31, 2001?
1/1
a. ₱7,600.
b. ₱8,000.
c. ₱8,600.
 
d. ₱9,750.

 
The Eric Manufacturing Company received its bank statement for the month ending May 31. The
bank statement indicates a balance of ₱32,400. The cash account as of the close of business on
May 31 has a balance of ₱8,350. In reconciling the balances, the following items were discovered:
(a) Collection by bank of note for ₱1,500 less collection fees of ₱250. (b)Deposits in transit,
₱51,000. (c)The bank charged the depositor ₱800 for overdrafts.(d)Checks outstanding on May 31,
₱79,100. (e)A check issued to Scott Corp. for ₱4,500 was not recorded in Eric Company's books.
The check cleared the bank in May. How much is the adjusted balance of cash?
1/1
a. 4,300
 
b. 5,200
c. 6,600
d. 9,800

 
At December 31, 20x3, Beth Co. had the following balances in the accounts it maintains at XYZ
Bank: ***Checking account #101 ₱175,000 ***Checking account #201 ₱(10,000) ***Money market
account ₱25,000 ***90-day certificate of deposit, due 2/28/x4, ₱50,000 ***180-day certificate of
deposit, due 3/15/x4, ₱80,000. Beth Co. classifies debt securities acquired three months or less
before maturity date as cash equivalents. In its December 31, 20x3 statement of financial position,
what amount should Beth Co. report as cash and cash equivalents?
0/1
a. 330,000
b. 250,000
 
c. 240,000
d. 225,000

 
When a bank receives cash from a depositor, the bank credits which of the following accounts?
0/1
a. Cash on hand
 
b. an appropriate income account
c. Cash in bank
d. Deposit liability

 
Entity A is preparing its March 31, 20x1 bank reconciliation. The following information was
determined: •The cash balance per books is ₱280,000, while the cash balance per bank statement
is ₱320,000. •Credit memo – ₱20,000 •Debit memo – ₱15,000 •Deposits in transit – ₱75,000
•Outstanding checks – ₱25,000 •The disbursements per books are overstated by ₱45,000. •The
bank debits are understated by ₱40,000. How much is the adjusted balance of cash?
1/1
a. 370,000
b. 330,000
 
c. 285,000
d. 380,000

 
On March 1, an entity received ₱3,000 from a client as an advance for 12 months’ worth of delivery
services. The entity initially recorded the receipt as a debit to cash and a credit to delivery service
revenue. The adjusting entry on December 31 would include a
0/1
a. debit to delivery service revenue for ₱2,500.
b. credit to unearned delivery service revenue for ₱500.
c. credit to delivery service revenue for ₱500.
d. No adjusting entry is required because the delivery service exactly covers a one-year period.
 
 
Jane Co. is preparing its September 30, 20x1 bank reconciliation. Relevant information is as
follows: Balance per books ₱1,480; Balance per bank statement ₱2,800; Collection on note by bank
(including ₱250 interest) ₱2,500; NSF check returned by bank ₱500; Bank service charges for
December ₱70; Deposits in transit ₱2,200 Outstanding checks (including certified checks of ₱100)
₱1,000. [Additional Information]: ***A ₱600 loan amortization of Jane Co. was erroneously debited
by the bank to Tarzan Co.’s account. Jane made the correct entry. ***A ₱650 collection of accounts
receivable was erroneously recorded in the books as ₱560. The actual amount deposited to the
bank is ₱650. The compound entry to reconcile the accounts includes a ---
1/1
a. net debit to cash for ₱2,020.
 
b. net credit to cash for ₱700.
c. credit to notes receivable for ₱2,500.
d. net debit to accounts receivable for ₱590.

 
Which of the following is not considered an internal control over cash?
1/1
a. rotating duties among employees with cashier responsibilities
b. separating the responsibilities for cash custody and cash recording
c. management’s operating style
 
d. voucher system

 
A company paid its property taxes on October 1 for the period October 1, year 1 to September 30,
year 2. When the payment was made, the company debited property taxes expense and credited
cash for ₱8,000. The adjusting entry at December 31, year 1 would include which of the following:
1/1
a. debit prepaid property taxes, ₱6,000.
 
b. credit prepaid property taxes, ₱6,000.
c. credit property tax expense, ₱2,000.
d. debit property tax expense, ₱6,000.
 
The total credits in the statement of financial position columns of a worksheet are ₱2,161,200, while
the total debits in the income statement columns are ₱740,400. The total debits in the adjusted trial
balance are ₱2,970,000. How much is the profit (loss) for the period?
1/1
a. 68,400
 
b. 80,800
c. (68,400)
d. (80,800)

 
Alaking Co. received cash to be held in trust for Ambit Co. under an escrow agreement. How should
Alaking Co. report the amount received in its financial statements?
1/1
a. as part of cash
b. as a liability
c. as an asset and a liability
 
d. as an off-balance sheet item that is disclosed in the notes

 
Journal entries based on the bank reconciliation are required on the depositor’s books for:
0/1
a. additions to the balance according to the depositor’s records
b. deductions from the balance according to the depositor’s records
c. both a and b
 
d. both additions to and deductions from the balance according to the bank’s records

 
Sneeze Co. established a petty cash fund of ₱1,400. The following were the fund disbursements
during the period:Freight-out -- ₱740; Transportation expense -- ₱240; Office supplies expense--
₱230; Miscellaneous expense-- ₱170. In addition to the receipts (source documents) for the above
items, the petty cash box contained ₱8 in coins and an IOU of ₱8 from the secretary handling the
fund. The IOU is to be treated as salary advance. The company uses a cash over and short
account, as needed. The company decided to decrease the petty cash fund to ₱1,000 after
replenishing the fund. How much is the cash (shortage) or overage during the period?
1/1
a. (4)
 
b. 4
c. (12)
d. 12

 
The policies and procedures used to safeguard assets, ensure accurate business information, and
ensure compliance with laws and regulations are called
1/1
a. voucher system.
b. bank reconciliation.
c. internal controls.
 
d. proof of cash.

 
The amount of the outstanding checks is included on the bank reconciliation as:
0/1
a. an addition to the balance per bank statement
b. a deduction from the balance per bank statement
c. an addition to the balance per depositor’s records
 
d. a deduction from the balance per depositor’s records

Problem Solving:
2 of 4 points
Proof of Cash. Input your answers: No peso sign, no spaces after comma.

 
What is the balance per book as of June 30?
1/1

15,822
 
 
What is the correct cash balance to be shown on Eastern Company’s statement of financial position
on July 31?
1/1

120,585
 
The following is for the next four questions:
 
What are the total cash disbursements per books for the month of July 2017?
···/1

212,657
 
 
What are the total cash receipts per books for the month of July?
···/1

236,452