Correct answer
AE 111 Midterm Formative Assessment All items except bank errors,
outstanding checks and deposits in
2 transit
Assessment Proper
Bank statements provide information
8 of 20 points
about all of the following, except *
A bank reconciliation is *
Checks cleared during the period
A financial statement that lists all of
the bank balances of an entity.
NSF checks
A merger of two banks that
previously were competitors. Bank charges for the period
A statement sent by the bank to Errors made by the depositor
depositor on a monthly basis.
Correct answer
A schedule that accounts for the Errors made by the depositor
differences between cash balance
shown on the bank statement and the
cash balance shown on the general Which statement in relation to bank
ledger. reconciliation is true? *
Bank reconciliation are normally Bank service charge will cause the
prepared on a monthly basis to identify cash balance per ledger to be higher
than that reported by the bank, all
adjustments needed in the depositor’s
other things being equal.
records and to identify bank errors.
Adjustments on the part of the Credit memos will cause the cash
depositor should be recorded for * balance per ledger to be higher than
that reported by the bank, all other
things being equal.
Bank errors, outstanding checks and
deposits in transit
Outstanding checks will cause the
cash balance per ledger to be greater
All items except bank errors, than the balance reported by the bank,
outstanding checks and deposits in all other things being equal
transit
The cash amount reported in the
Book errors, bank errors, deposits in statement of financial position must
transit and outstanding checks be the balance reported in the bank
statement.
Outstanding checks and deposits in
transit
Correct answer If the balance shown in the bank
Bank service charge will cause the statement is less than the correct cash
cash balance per ledger to be higher balance and neither the entity nor the
than that reported by the bank, all
other things being equal. bank has made any errors, there must
be *
If the cash balance shown in the
accounting record is less than the Deposits credited by the bank but not
yet recorded by the depositor
correct cash balance and neither the
entity nor the bank has made any errors, Outstanding checks
there must be *
Deposits in transit
Deposits credited by the bank but not
recorded by the depositor Bank charges not yet recorded by the
depositor
Deposits in transit
Correct answer
Outstanding checks Deposits in transit
Bank charges not yet recorded by the
depositor Which of the following would be added
to the balance per bank statement to
Which of the following must be arrive at the correct cash balance? *
deducted from the bank statement
Outstanding check
balance in preparing a bank
reconciliation which ends with adjusted
Bank service charge
cash balance? *
Deposit in transit
Deposit in transit
A customer note collected by the
Outstanding check bank on behalf of the depositor
Reduction of loan charged to the Which of the following items must be
account of the depositor
added to the cash balance per ledger in
Certified check preparing a bank reconciliation which
ends with adjusted cash balance? *
Correct answer
Outstanding check Note receivable collected by bank in
favor of the depositor and credited to
the account of the depositor
NSF customer check
Service charge
Erroneous bank debit
Which statement in relation to a
certified check is not true? *
A certified check is a liability of the
bank certifying it
A certified check will be accepted by
many persons who would not
otherwise accept a personal check.
A certified check is one drawn by a
bank upon itself
A certified check should not be
included in the outstanding checks
Correct answer
A certified check is one drawn by a
bank upon itself
