Reference no: EM132661353

Problem 1: In a bank reconciliation, when the bank statement shows a debit balance, unpresented cheques are

Select one:

a. Added to the balance as per bank statement

b. Added to the business records balance

c. Deducted from the balance as per bank statement

d. Deducted from the business records balance

Problem 2: Under the direct write-off method, when $200 is determined to be uncollectable, the journal entry would be

Select one:

a. Debit Cash $200, Credit Accounts Receivable $200

b. Debit Bad Debts Expense $200, Credit Accounts Receivable $200

c. Debit Bad Debts Expense $200, Credit Cash $200

d. Debit Accounts Receivable $200, Credit Bad Debts Expense $200

Problem 3: Which of the following statements about unpresented cheques is correct?

Select one:

a. have been recorded on the company's books and paid by the bank

b. have not been recorded by the bank and the company

c. have been recorded by the bank but not yet by the company

d. have been drawn by the payer but not yet paid by the bank

Problem 4: To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by the employee authorised to sign cheques.

Select one:

True

False