Question 1The one characteristic that all entries recorded in a cash payments journal have in common isthat they all represent purchases of merchandise.a credit to the cash account.that they are all posted to the accounts payable subsidiary ledger.a debit to the accounts payable or purchases accounts.Flag this QuestionQuestion 2If a transaction cannot be recorded in a special journalthe company must refuse to enter into the transaction.it is recorded in the general journal.it is recorded directly in the accounts in the general ledger.it is recorded as an adjustment on the work sheet.Flag this QuestionQuestion 3Posting a sales journal to the accounts in the general ledger requires adebit to Cash and a credit to Sales.debit to Sales and a credit to Inventory.debit to Accounts Receivable and a credit to Inventory.debit to Accounts Receivable and a credit to Sales.Flag this QuestionQuestion 4A petty cash fund of $100 is replenished when the fund contains $3 in cash and receipts for $93. The entry to replenish the fund wouldcredit Cash Over and Short for $4.credit Miscellaneous Revenue for $4.debit Cash Over and Short for $4.debit Miscellaneous Expense for $4.Flag this QuestionQuestion 5A petty cash fund is generally established in order topay for all merchandise purchased on account.pay employees’ wages.make loans internally to employees.pay relatively small expenditures.Flag this QuestionQuestion 6The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2,300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer’s check for $320 was returned because it was NSF. A customer’s check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97. The correct balance in the cash account was$45,512.$45,548.$45,728.$45,848.Flag this QuestionQuestion 7Deposits in transithave been recorded on the company’s books but not yet by the bank.have been recorded by the bank but not yet by the company.have not been recorded by the bank or the company.are checks from customers which have not yet been received by the company.Flag this QuestionQuestion 8An adjusting entry is not required foroutstanding checks.collection of a note by the bank.NSF checks.bank service charges.Flag this QuestionQuestion 9Notification by the bank that a deposited customer check was returned NSF requires that the company make the following adjusting entry:debit accounts receivable, credit cashdebit cash, credit accounts receivabledebit miscellaneous expense, credit cashNo adjusting entry is necessary.Flag this QuestionQuestion 10If a check correctly written and paid by the bank for $428 is incorrectly recorded on the company’s books for $482, the appropriate treatment on the bank reconciliation would be toadd $54 to the bank’s balance.add $54 to the book’s balance.deduct $54 from the bank’s balance.deduct $428 from the book’s balance.
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