Reference no: EM132774006

Problem 1: In reconciling the bank balance, an unrecorded debit memorandum for printing cheques should be

1) Noted as a memo

2) Added to the book balance of cash

3) Deducted from the book balance of cash

4) Added to the bank balance of cash

5) Deducted from the bank balance of cash

Problem 2: The Cash Over and Short account

1) Is used to record a credit balance in the cash account

2) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts

3) Is not necessary in a computerized accounting system

4) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts and is not necessary in a computerized accounting system

5) None of these