What bank service charges are

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Problem 1: Which of the following statements is true?

a.Sound internal control practice dictates that all cash payments should be made by check.

b.Petty cash can be substituted for a checking account to expedite the payment of all disbursements.

c.The person handling the cash should also prepare the bank reconciliation.

d.Good cash management practices dictate that a company should maintain as large a balance as possible in its Good Cash account.

Problem 2: When preparing a bank reconciliation, bank service charges are

a.added to the bank statement balance.

b.added to the company's book balance.

c.deducted from the bank statement balance.

d.deducted from the company's book balance.

Reference no: EM132789976

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