Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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The
person who signs the check is called the: a. | drawee | b. | drawer | c. | payee | d. | bank
examiner | | |
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2.
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A
check drawn by a depositor for $195 in payment of a liability was recorded in the journal as
$915. This item would be included on the bank reconciliation as a(n): a. | addition to the
balance per the depositor's records | b. | addition to the balance per the bank
statement | c. | deduction from the balance per the bank
statement | d. | deduction from the balance per the depositor's
records | | |
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3.
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Journal entries based on the bank reconciliation are required in the depositor's
accounts for: a. | outstanding
checks | b. | deposits in transit | c. | bank
errors | d. | book errors | | |
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4.
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Accompanying the bank statement was a debit memorandum for bank service charges.
What entry is required in the depositor's accounts? a. | debit
Miscellaneous Administrative Expense; credit Cash | b. | debit Cash;
credit Other Income | c. | debit Cash; credit Accounts Payable | d. | debit Accounts
Payable; credit Cash | | |
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