10) Journal entries that are necessitated by reconciling items on the book side of the reconciliation all include either a debit to Cash or a credit to Cash.
11) If the bank reconciliation includes interest revenue, a journal entry is required which debits Cash and credits Interest revenue.
12) Which of the following is a benefit of online banking?
A) The business can reconcile to the bank's balance at any time.
B) The bank reconciliation is not necessary.
C) The business can reduce their internal controls over cash receipts.
D) A company's book balance will always equal the bank's balance.
13) Which of the following items will NOT appear on the book side of the reconciliation?
A) The bank collected a note receivable of $1,000.
B) A nonsufficient funds check of $75 was returned to the bank.
C) A deposit was in transit.
D) The bank charged a service fee of $20.
14) A check was written by a business for $205, but recorded in the cash payments journal as $502. How would this error be included on the bank reconciliation?
A) A deduction on the bank side
B) An addition on the book side
C) An addition on the bank side
D) A deduction on the book side
15) The bank recorded a $2,000 deposit as $200. How would this information be included on the bank reconciliation?
A) A deduction on the bank side
B) A deduction on the book side
C) An addition on the book side
D) An addition on the bank side
16) The bank collected a note receivable of $1,000. How would this information be included on the bank reconciliation?
A) An addition on the bank side
B) A deduction on the book side
C) An addition on the book side
D) A deduction on the bank side
17) A check of $75 deposited by a company was returned to the bank for nonsufficient funds. How would this information be included on the bank reconciliation?
A) A deduction on the bank side
B) An addition on the bank side
C) An addition on the book side
D) A deduction on the book side
18) Check Number 6135 for $576 was incorrectly entered as $657. Which adjustment needs to be made?
A) Decrease the book balance.
B) Decrease the bank statement balance.
C) Increase the book balance.
D) Increase the bank statement balance.
19) Check Number 367 for $33.52 was incorrectly entered as $33.25. Which adjustment needs to be made?
A) Decrease the book balance.
B) Decrease the bank statement balance.
C) Increase the book balance.
D) Increase the bank statement balance.