1.) At the end of the day, the cash register tape shows $1,120 in cash sales but the count of cash in the register is $1,160. The proper entry to account for this excess is:

Multiple Choice

• Debit Cash $1,120; credit Sales $1,120.

• Debit Cash $1,160; credit Sales $1,160.

• Debit Cash $1,160; credit Sales $1,120; credit Cash Over and Short $40.

• Debit Cash $1,120; debit Cash Over and Short for $40; credit Sales $1,160.

• Debit Cash Over and Short $40; credit Cash $40.

2.) If a check correctly written and paid by the bank for $402 is incorrectly recorded in the company's books for $344, how should this error be treated on the bank reconciliation?

Multiple Choice

• Add $58 to the book balance.

• Subtract $58 from the book balance.

• Subtract $58 from the bank's balance.

• Subtract $58 from the bank's balance and add $58 to the book's balance.

• Add $58 to the bank's balance.

3.) Outstanding checks refer to checks that have been:

Multiple Choice

• Written, recorded, sent to payees, and received and paid by the bank.

• Written and not yet recorded in the company books.

• Held as blank checks.

• Written by the depositor, subtracted on the depositor’s books, and sent to the payee but not yet turned in for payment at the bank statement date.

• Issued by the bank.

4.) At the end of the day, the cash register's record shows $1,262, but the count of cash in the cash register is $1,251. The correct entry to record the cash sales is

Multiple Choice

• Debit Cash $1,251; debit Cash Over and Short $11; credit Sales $1,262.

• Debit Cash $1,262; credit Sales $1,262.

• Debit Cash $1,262; credit Cash Over and Short $1,251; credit Sales $11.

• Debit Cash $1,251; Credit Sales $1,251.

• Debit Cash Over and Short $11, credit Sales $11.