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    Alyssa Epi
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    Outstanding checks are added to the adjusted book balance to arrive at the unadjusted bank balance when reconciling a bank statement using the book to bank method. An outstanding check most likely caused the adjusted book balance to be less than the unadjusted bank balance with no errors, as outstanding checks have been issued but not yet deducted from the bank balance. Both statements about petty cash fund accounting are false - it is credited for replenishments and an adjusting entry is needed under the fluctuating balance method. Petty cash fund is debited when establishing or increasing the fund balance. A special check is drawn against the bank's account, while an ordinary check is drawn against the issuer's bank account.

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    Special check

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    Outstanding checks are added to the adjusted book balance to arrive at the unadjusted bank balance when reconciling a bank statement using the book to bank method. An outstanding check most likely caused the adjusted book balance to be less than the unadjusted bank balance with no errors, as outstanding checks have been issued but not yet deducted from the bank balance. Both statements about petty cash fund accounting are false - it is credited for replenishments and an adjusting entry is needed under the fluctuating balance method. Petty cash fund is debited when establishing or increasing the fund balance. A special check is drawn against the bank's account, while an ordinary check is drawn against the issuer's bank account.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    6 views1 page

    Special Check

    Uploaded by

    Alyssa Epi
    Outstanding checks are added to the adjusted book balance to arrive at the unadjusted bank balance when reconciling a bank statement using the book to bank method. An outstanding check most likely caused the adjusted book balance to be less than the unadjusted bank balance with no errors, as outstanding checks have been issued but not yet deducted from the bank balance. Both statements about petty cash fund accounting are false - it is credited for replenishments and an adjusting entry is needed under the fluctuating balance method. Petty cash fund is debited when establishing or increasing the fund balance. A special check is drawn against the bank's account, while an ordinary check is drawn against the issuer's bank account.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    8. Mr.

    Shu is preparing a bank reconciliation for the month of January using the book to bank
    method. Which of the following items is added to the adjusted book balance to arrive at the unadjusted
    bank balance? Outstanding check

    9. At the end of a particular month, the adjusted book balance as recorded in the company's books
    is less than the unadjusted bank balance in the bank statement. There were no errors during the month.
    Which of the following items most likely caused this? Outstanding check

    10. Statement 1: The Petty Cash Fund account is credited whenever the fund is replenished under
    the Imprest Fund System.

    Statement 2: At the end of a period, it is necessary to prepare an adjusting journal entry to record
    the company expenses not yet replenished when a company is using the Fluctuating Balance Method.
    Both statements are false

    11. Which of the following instances will the account Petty Cash Fund be debited? When
    establishing the petty cash fund and when increasing its balance.

    12. Which of the following is the difference between an ordinary check and a special check such as a
    manager check? A special check is drawn against the account of the bank while an ordinary check is
    drawn against the issuer's bank account.

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