TRUE/FALSE (2 points each) 1. To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who is the same employee that writes out checks and records the bank deposits. A) True B) False 2. The responsibility for ordering, receiving, and paying for merchandise should be assigned to the same individual. A) True B) False MULTIPLE CHOICE (3 points each) 3. An example of a cash equivalent is A) a 120-day short-term investment. notes receivable. accounts receivable. a 60-day short-term investment. B) C) D) 4. Deposits in transit A) have been recorded on the company's books but not yet by the bank, B) have been recorded by the bank but not yet by the company. C) have not been recorded by the bank or the company. D) are checks from customers which have not yet been received by the company. 5. On a bank reconciliation, a Company should record interest it earned on their checking account as a(n) A) deduction from the balance per books. addition to the balance per books. C) addition to the balance per bank. D) deduction from the balance per bank. B)