139.Osborn Company assembled the following information in completing its March bank reconciliation: balance per bank $3,820; outstanding checks $775; deposits in transit $1,250; NSF check $80; bank service charge $25; cash balance per books $4,400. As a result of this reconciliation, Osborn will
a.reduce its cash account by $475.
b.reduce its cash account by $25.
c.increase its cash account by $55.
d.reduce its cash account by $105.
140.Tavarez Company assembled the following information in completing its July bank reconciliation: balance per bank $15,280; outstanding checks $3,100; deposits in transit $5,000; NSF check $320; bank service charge $100; cash balance per books $17,600. As a result of this reconciliation, Tavarez will
a.reduce its cash account by $1,900.
b.reduce its cash account by $100.
c.increase its cash account by $220.
d.reduce its cash account by $420.
141.If a check correctly written and paid by the bank for $491 is incorrectly recorded on the company’s books for $419, the appropriate treatment on the bank reconciliation would be to
a.add $72 to the book’s balance.
b.subtract $72 from the book’s balance.
c.deduct $72 from the bank’s balance.
d.deduct $491 from the book’s balance.
142.In the month of May, Grimm Company Inc. wrote checks in the amount of $46,250. In June, checks in the amount of $63,290 were written. In May, $42,340 of these checks were presented to the bank for payment, and $54,415 in June. What is the amount of outstanding checks at the end of May?
a.$8,875
b.$3,910
c.$12,785
d.$17,750
143.In the month of May, Grimm Company Inc. wrote checks in the amount of $46,250. In June, checks in the amount of $63,290 were written. In May, $42,340 of these checks were presented to the bank for payment, and $54,415 in June. What is the amount of outstanding checks at the end of June?
a.$8,875
b.$3,910
c.$12,785
d.$17,750
144.Cash equivalents include each of the following
except
a.bank certificates of deposit.
b.money market funds.
c.petty cash.
d.U.S. Treasury bills.
145.Which of the following would
not
be reported on the balance sheet as a cash equivalent?
a.Money market fund
b.Sixty-day certificate of deposit
c.Six-month Treasury bill
d.Money market savings certificate
146.Compensating balances are a restriction on the use of a company's cash and should be
a.reported as a current asset.
b.reported as a noncurrent asset.
c.disclosed in the financial statements.
d.reported as a reduction of cash.
147. The principles of internal control include all of the following
except
a.establishment of responsibility.
b.combining of duties.
c.physical, mechanical, and electronic controls.
d.independent internal verification.
148. An example of poor internal control is
a.The accountant should not have physical custody of the asset nor access to it.
b.The custodian of an asset should not maintain or have access to the accounting records.
c.One person should be responsible for handling related transactions.
d.A salesperson makes the sale, and a different person ships the goods.