Question: Select the alternative that best answers each question or completes each statement. 12. During the process of preparing the bank reconciliation, a. interest earned on

Select the alternative that best answers each question or completes each statement.

12. During the process of preparing the bank reconciliation, a. interest earned on the bank account balance is subtracted and NSF checks are added to the balance as per company records. b. interest earned on the bank account balance and NSF checks are deducted from the balance as per company records. c. interest earned on the bank account balance and NSF checks are added to the balance as per company records. d. interest earned on the bank account balance is added and NSF checks are subtracted from the balance as per company records. 13. Internal control systems do NOT consist of policies and procedures that a. protect company resources from improper use b. help the company achieve its financial goals c. guarantee that the person will not incur bankruptcy (broken bank) d. ensure that financial information and records are accurate and accurate

14. When preparing the bank reconciliation, outstanding checks are included. a. is subtracted from the balance according to company records. b. are added to the balance according to the bank statement. c. are subtracted from the balance according to the bank statement. d. are added to the balance sheet according to company records.

15. Along with the bank statement, you receive a notification about the collection of service charges (bank service charges). When preparing the bank reconciliation, this item a. is subtracted from the cash balance according to company records. b. is added to the balance according to the bank statement. c. is subtracted from the balance according to the bank statement. d. is added to the cash balance according to company records.

16. With the bank statement you can receive notifications of increases or decreases to the balance of cash deposited in the bank. An example of a bank notification of a transaction causing an increase is: a. check returned for insufficient funds (NSF check) b. collection of a note receivable c. bank service charges d. notification that a check for $375 was noted on the bank's deposit slip as $735

17. A check written for $635 was erroneously recorded as $365 in the company's records. This item should be included in the bank reconciliation as: a. is subtracted from the cash balance according to company records. b. is added to the balance according to the bank statement. c. is subtracted from the balance according to the bank statement. d. is added to the cash balance according to company records.

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