Question 1

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-a $1,000 note from one of your customers was collected by the bank

Accepted Answer

The collection of the $1,000 note from the customer would increase the company's cash balance, so it would be added to the company's books. It would also be reflected on the bank statement as a deposit, so it would also be added to the bank statement balance.

Question 2

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-EFT deposit from a customer

Accepted Answer

An EFT deposit from a customer would be added to the company's books because it represents money that the company has received but has not yet recorded. It would also be added to the bank statement balance because the bank has received the deposit and has recorded it on the statement.

Question 3

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-bank service charge

Accepted Answer

Bank service charges are expenses for the company and are subtracted from the company's books to reflect the decrease in the company's cash balance due to these charges.

Question 4

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-NSF check

Accepted Answer

An NSF (Non-Sufficient Funds) check means that the check did not clear because there were not enough funds in the account. Therefore, it needs to be subtracted from the company's books. It has already been subtracted from the bank statement balance by the bank, so it does not need to be further adjusted on the bank statement side.

Question 5

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-deposit in transit

Accepted Answer

Deposits in transit are amounts that have been recorded by the company but not yet reflected on the bank statement. Therefore, they are added to the bank statement balance during the bank reconciliation process to reconcile the company's book balance with the bank statement balance.

Question 6

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-charges for some other company's safe deposit box were posted to your account

Accepted Answer

The answer of Assign the letter to indicate whether the...

Question 7

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation.
-interest revenue earned by the note above

Accepted Answer

Interest revenue earned by the note is revenue earned by the company and should be added to the company's books, not the bank statement balance. Therefore, the correct choice is A, added to the company's books.

Quiz 7: Sarbanes-Oxley, Internal Control, and Cash

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -a $1,000 note from one of your customers was collected by the bank

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -EFT deposit from a customer

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -bank service charge

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -NSF check

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -deposit in transit

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -charges for some other company's safe deposit box were posted to your account

Assign the letter to indicate whether the following items would be added or subtracted from the company's books or the bank statement during the construction of a bank reconciliation. -interest revenue earned by the note above