A check drawn by a company for 340 in payment of a liability was recorded in the journal as 430 . This itemwould be included on the bank reconciliation as a(n)
a. addition to the balance per the company's records
b. addition to the balance per the bank statement
c. deduction from the balance per the bank statement
d. deduction from the balance per the company's records
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Q. 2) The cash budget ________.
A) is one of the financial statements required by the SEC and FASB
B) is used by management to anticipate any cash flow shortages
C) has three sections: operating, investing, and financing
D) all of these
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Q. 3) _____________________________
_ is a service whereby data changes are automatically transmitted over the Internet on a continuous basis to an off-site server maintained by a third party.
Fill in the blank(s) with correct word
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Q. 4) Which of the following accounts is NOT used to account for merchandise sales transactions?
a. Sales
b. Sales Tax Payable
c. Sales Returns and Allowances
d. Accounts Payable
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Q. 5) 100,000 of 9, 10-year bonds were issued for 106,710 when the market rate of interest was 8. The bonds pay interest once a year.
1. How much interest will be paid in cash in the first year?
2. How much interest expense will be reported for the first year, assuming the company uses effective-interest amortization?
3. How much interest expense will be reported for the first year, assuming the company uses straight-line amortization?
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Q. 6) A debit or credit memo describing entries in the company's bank account may be enclosed with the bankstatement. An example of a credit memo is
a. deposited checks returned for insufficient funds
b. a promissory note left for collection
c. a service charge
d. notification that a customer's check for 375 was recorded by the company as 735 on the deposit ticket
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