Division of Cebu Province

Argao 1 District
Usmad National High School
Usmad, Argao, Cebu

1st Summative Test

Name:_____________________________________Date:_____________________Score:________________

Direction: Read carefully and analyze each item. Encircle the best answer.

1. These are cash items deposited in foreign countries and are denominated in different foreign currencies.
a. Stale check b. Customer check c. Foreign Currency Bank Account d. Savings Deposit
2. These are checks received from customers.
a. Stale check b. Customer check c. Foreign Currency Bank Account d. Savings Deposit
3. These are checks issued by bank cashiers.
a. Cashier’s Check b. Traveler’s Check c. Saving’s Account d. Manager’s Check
4. These are checks issued by bank managers.
a. Cashier’s Check b. Traveler’s Check c. Saving’s Account d. Manager’s Check
5. These are checks issued by the company to suppliers and creditors and not encashed on time.
a. Stale check b. Customer check c. Foreign Currency Bank Account d. Savings Deposit
6. These are checks prepared by the company that will be delivered to corporate creditors or suppliers.
a. Stale Check b. Undelivered Check c. Foreign Currency Bank Account d. Savings Deposit
7. These are company checks that are already delivered to the payee but they cannot be encashed or deposited yet because
the date indicated in the check has not yet arrived.
a. Stale check b. Undelivered check c. Foreign Currency Bank Account d. Postdated check
8. This bank account usually earns interest income over the time that money was deposited in such an account.
a. Stale Check b. Checking Account c. Foreign Currency Bank Account d. Savings Deposit
9. It is a generally accepted medium of financial exchange, a legal tender used to pay debts
a. check b. money c. note d. voucher
10. Which bank document is used by clients to get money from the banks?
a. deposit slip b. payment slip c. bank statement d. withdrawal slip
11. Which document is used by clients to put money in the bank?
a. deposit slip b. payment slip c. bank statement d. withdrawal slip
12. What kind of account carries the convenience of withdrawing by check?
a. checking account b. recurring deposit c. savings account. d. time deposit
13. What kind of account has a fixed maturity date and higher interest rate?
a. current account b. recurring deposit c. savings account. d. time deposit
14. Which instrument is used for payment of goods and services as a substitute for cash?
a. check b. deposit slip c. payment slip d. withdrawal slip
15. What happens when a check was failed to be claimed after six months?
a. It becomes a postdated check. c. It becomes a receivable.
b. It becomes a stale check. d. It becomes an investment
16. It is a statement prepared to reconcile the difference between cash book and bank balance.
a. Bank Statement c. Income Statement
b. Bank Reconciliation Statement d. Financial Statement
17. How many reciprocal accounts should be reconciled in a bank reconciliation?
a. 1 b. 2 c. 3 d. 4
18. After all the adjustments made, what should be the result of the reciprocal accounts have?
a. Different balance b. Same balance c. Unpredicted Balance d. Zero balance
19. Bank reconciliations statement prepared __________ to show that the cash balance per book and bank records has no
discrepancy.
a. Annually b. Daily c. Monthly d. Quarterly
20. These are items added made by the bank but not yet recorded by the depositor.
a. Credit Memo b. Debit Memo c. Deposit in Transit d. NSF
21. A cash or check deposit recorded by the company but not recorded by the bank that deposited after the cut-off.
a. Credit Memo b. Debit Memo c. Deposit in Transits d. NSF Checks
22. These are items deducted made by the bank but not yet recorded by the depositor.
a. Credit Memo b. Debit Memo c. Deposit in Transits d. Outstanding Checks
23. Which is not a bank reconciling items?
a. Bank errors b. Deposit in Transits c. NSF Checks d. Outstanding Checks
24. Which is not a book reconciling items?
 a. Credit Memo b. Debit Memo c. NSF Checks d. Outstanding Checks
25. Which of the following is not an example of a Credit Memo?
a. Bank Service Charge c. Interest Income earned by the account holder
b. A collection made by the bank d. Proceed from loan added by the bank
26. Which of the following is an example of a Debit Memo?
a. Automatic payments of bills on behalf of the account holder
b. A collection made by the bank on behalf of the account holder
c. Deposit in Transit
d. Outstanding Checks
27. Why is bank reconciliation being prepared?
a. To gather data from the company’s record and bank statement
b. It explains the difference between the reposted cash balance per book and bank
c. Provide information for adjusting journal entries
d. For reporting
28. Items that are erroneously recorded by the company.
a. Book errors b. Bank errors c. Collection by the banks d. Payments of Loan
29. Items that are correctly recorded by the company but erroneously recorded by the bank
a. Book errors b. Bank errors c. Collection by the bank d. Payment of Loan
30. KITKIT company has a P1,860,000 balance per book, a P311,000 deposit in transit, P53,000 outstanding checks, a
P56,000 credit memo, and a P129,000 NSF check. What is the adjusted cash balance?
a. P1,585,000 b. P1,975,000 c. P1,787,000 d. P1,722,000
31. Masigasig Company issued a check for Ᵽ56, and it cleared the bank for Ᵽ56. However, the company recorded the check
on its cash ledger as Ᵽ66. How is the difference of Ᵽ10 be treated on the bank reconciliation?
a. Add to BOOK Balance c. Add to BANK Balance
b. Deduct from BOOK Balance d. Deduct from BANK Balance
32. Boyet Computer Store recorded a check withdrawal of P78,400 as P76,400. The check cleared the bank at the correct
amount of P78,400. What is the adjusted correct cash balance per book?
a. P78,400 addition to the book balance. c. P2,000 addition to the book balance.
b. P78,400 deduction from the book balance. d. P2,000 deduction from the book balance.
33. XYZ company's records show a cash balance of P31,200, but the bank statement shows a balance of P30,000. If there is
only one reconciling item, the P1,200 difference would most likely be a(an)
a. credit memo. b. overstated book credit. c. outstanding check. d. NSF check
34. Each bank accounts are insured from the PDIC for up to what amount?
a. P250,000 b. P500,000 c. P300,000 d. P1,000,000
35. PDIC is an institution that insures bank deposits. What does it stand for?
a. Philippine Dangerous Income Check
b. Philippine Deposit Insurance Corporation
c. Philippine Depository Insurance Company
d. Philippine International Insurance Check

“When you believe in yourself, anything is possible. Wishing you the best of luck on your Summative Test.”