21. When a "debit memo" is included in a bank statement, what effect does that have on the cash balance?
22. What is a deposit in transit?
23. What term is used for a customer's check that is returned by the bank on which it was drawn because the customer did not have enough funds to pay the check?
24. Are outstanding checks an adjustment to the book balance, the bank balance, or not used in a bank reconciliation?
25. Is the establishment of a petty cash fund an asset source, asset use, asset exchange, or claims exchange transaction?
26. What is the purpose of establishing a petty cash fund?
27. Petty cash funds are maintained on an imprest basis. Explain the advantage of using the imprest basis in accounting for petty cash.
28. What are the primary roles of the independent auditor? What professional license is required of an independent auditor?
29. What is meant by the term "materiality?"
30. List three of the five primary roles of the independent auditor (CPA).