LSU ACCT 2000 LETITIA LOWE ARDOIN EXAM 2 QUESTIONS & ANSWERS 2026-202… EXAM
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
LSU ACCT 2000 Letitia Lowe
Ardoin Exam 2 Questions &
Answers 2026-2027 | Latest
Verified Exam (Rationales)
Verified Answers Exam Ready With Rationales
111 QUESTIONS
DOCUMENT OVERVIEW
This document provides 111 verified exam questions with correct answers and detailed rationales, focusing
on accounting principles and practices. It serves as a comprehensive resource for effective study and
review, ensuring mastery of key concepts necessary for academic success and certification preparation in
accounting. Students can utilize this material to reinforce their understanding and enhance their exam
readiness.
CONTENTS
01 • Bank Reconciliation 02 • Internal Controls 03 • Petty Cash and Expenses
04 • Adjustments and Errors 05 • Accrual Accounting 06 • Revenue Recognition
07 • Inventory Management 08 • Financial Statements 09 • Cost of Goods Sold
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 111
What does a check marked NSF mean?
CORRECT ANSWER
Not Sufficient Funds
RATIONALE
A check marked NSF indicates that the account on which it is drawn lacks sufficient funds to cover the transaction,
leading to its non-acceptance. This reflects the principle of financial solvency, where insufficient account balance
prevents the execution of a payment.
Q2 QUESTION 2 OF 111
In preparing a bank reconciliation, the adjusted cash balance per the bank is $12,540. If deposits in transit total
$4,250, a check was correctly paid in the amount of $250 by the bank, however it was recorded in the Cash
account as $520, and the cash balance per bank statement is $13,875, what amount represents outstanding
checks?
CORRECT ANSWER
$5,585
RATIONALE
Outstanding checks are calculated by adjusting the bank's cash balance with deposits in transit and errors in recording.
Here, the adjusted bank balance of $12,540 minus the cash balance per bank statement of $13,875, plus the discrepancy
from the incorrectly recorded check of $270, results in outstanding checks totaling $5,585.
Q3 QUESTION 3 OF 111
In preparing a bank reconciliation, the adjusted cash balance per bank is $8,278. If the cash balance per bank
statement is $10,141 and deposits in transit are $2,825, what amount represents outstanding checks for the most
recent banking period?
CORRECT ANSWER
$4,688
Page 2
, RATIONALE
Outstanding checks are calculated by subtracting the adjusted cash balance from the sum of the cash balance per bank
statement and deposits in transit; thus, $10,141 + $2,825 - $8,278 results in outstanding checks of $4,688. This reflects the
timing difference between recorded transactions and actual bank activity.
Q4 QUESTION 4 OF 111
A bank reconciliation for Lightening Company included the following items: $40 bank service charge; NSF check
of $125; bank error of $28; EFT collection from a customer for $1,245. Based on the information, Lightening
Company will adjust cash by what amount?
CORRECT ANSWER
$1,080
RATIONALE
Adjustments to cash include subtracting the $40 bank service charge and the $125 NSF check, while adding the $28 bank
error and the $1,245 EFT collection, resulting in a net adjustment of $1,080. This calculation reflects the accurate
reconciliation of bank and book cash balances, emphasizing the importance of identifying and correcting discrepancies.
Q5 QUESTION 5 OF 111
A month-end bank statement shows a balance of $26,000. Outstanding checks are $10,000, a deposit of $2,000
was in transit at month-end, and a check for $200 was erroneously charged by the bank against the account. What
is the correct balance in the bank account at month end?
Select answer from the options below
CORRECT ANSWER
$18,200
RATIONALE
To determine the correct bank balance, subtract the outstanding checks and erroneous charge from the bank statement
balance, then add the deposit in transit: $26,000 - $10,000 - $200 + $2,000 equals $18,200. This calculation illustrates
the reconciliation process essential in bank statement analysis.
Q6 QUESTION 6 OF 111
Page 3
, When preparing a bank reconciliation, which of the following items will affect the cash balance per the bank?
CORRECT ANSWER
Outstanding checks
RATIONALE
Outstanding checks reduce the cash balance reported by the bank because they represent payments that have been
issued but not yet processed by the bank, thereby creating a discrepancy between the company's records and the bank's
records. Recognizing this timing difference is critical for accurate bank reconciliation.
Q7 QUESTION 7 OF 111
At what point does the voucher system begin?
CORRECT ANSWER
Authorization
RATIONALE
Authorization initiates the voucher system by formally granting permission for services or goods to be provided,
establishing accountability and ensuring that resources are allocated according to predefined criteria. This process is
critical for maintaining financial oversight and operational efficiency within the system.
Q8 QUESTION 8 OF 111
When reconciling the bank statement against a company's book, checks that have been written by the company
and marked paid by the bank are referred to as _____________. A check that had been received from a customer,
deposited into the bank account and then was subsequently charged against the company bank account is known
as a(n) _______________.
CORRECT ANSWER
canceled checks; NSF check.
RATIONALE
Canceled checks represent payments that have cleared the bank, confirming that the funds have been disbursed from the
company's account, while an NSF check indicates insufficient funds, leading to a returned payment that affects cash flow
and reconciliation processes. Understanding these terms is critical for accurate financial management and bank
reconciliation.
Page 4
P R O F E S S I O N A L P R A C T I C E M AT E R I A L S
LSU ACCT 2000 Letitia Lowe
Ardoin Exam 2 Questions &
Answers 2026-2027 | Latest
Verified Exam (Rationales)
Verified Answers Exam Ready With Rationales
111 QUESTIONS
DOCUMENT OVERVIEW
This document provides 111 verified exam questions with correct answers and detailed rationales, focusing
on accounting principles and practices. It serves as a comprehensive resource for effective study and
review, ensuring mastery of key concepts necessary for academic success and certification preparation in
accounting. Students can utilize this material to reinforce their understanding and enhance their exam
readiness.
CONTENTS
01 • Bank Reconciliation 02 • Internal Controls 03 • Petty Cash and Expenses
04 • Adjustments and Errors 05 • Accrual Accounting 06 • Revenue Recognition
07 • Inventory Management 08 • Financial Statements 09 • Cost of Goods Sold
Page 1
, E XA M Q U EST I O N S
Q1 QUESTION 1 OF 111
What does a check marked NSF mean?
CORRECT ANSWER
Not Sufficient Funds
RATIONALE
A check marked NSF indicates that the account on which it is drawn lacks sufficient funds to cover the transaction,
leading to its non-acceptance. This reflects the principle of financial solvency, where insufficient account balance
prevents the execution of a payment.
Q2 QUESTION 2 OF 111
In preparing a bank reconciliation, the adjusted cash balance per the bank is $12,540. If deposits in transit total
$4,250, a check was correctly paid in the amount of $250 by the bank, however it was recorded in the Cash
account as $520, and the cash balance per bank statement is $13,875, what amount represents outstanding
checks?
CORRECT ANSWER
$5,585
RATIONALE
Outstanding checks are calculated by adjusting the bank's cash balance with deposits in transit and errors in recording.
Here, the adjusted bank balance of $12,540 minus the cash balance per bank statement of $13,875, plus the discrepancy
from the incorrectly recorded check of $270, results in outstanding checks totaling $5,585.
Q3 QUESTION 3 OF 111
In preparing a bank reconciliation, the adjusted cash balance per bank is $8,278. If the cash balance per bank
statement is $10,141 and deposits in transit are $2,825, what amount represents outstanding checks for the most
recent banking period?
CORRECT ANSWER
$4,688
Page 2
, RATIONALE
Outstanding checks are calculated by subtracting the adjusted cash balance from the sum of the cash balance per bank
statement and deposits in transit; thus, $10,141 + $2,825 - $8,278 results in outstanding checks of $4,688. This reflects the
timing difference between recorded transactions and actual bank activity.
Q4 QUESTION 4 OF 111
A bank reconciliation for Lightening Company included the following items: $40 bank service charge; NSF check
of $125; bank error of $28; EFT collection from a customer for $1,245. Based on the information, Lightening
Company will adjust cash by what amount?
CORRECT ANSWER
$1,080
RATIONALE
Adjustments to cash include subtracting the $40 bank service charge and the $125 NSF check, while adding the $28 bank
error and the $1,245 EFT collection, resulting in a net adjustment of $1,080. This calculation reflects the accurate
reconciliation of bank and book cash balances, emphasizing the importance of identifying and correcting discrepancies.
Q5 QUESTION 5 OF 111
A month-end bank statement shows a balance of $26,000. Outstanding checks are $10,000, a deposit of $2,000
was in transit at month-end, and a check for $200 was erroneously charged by the bank against the account. What
is the correct balance in the bank account at month end?
Select answer from the options below
CORRECT ANSWER
$18,200
RATIONALE
To determine the correct bank balance, subtract the outstanding checks and erroneous charge from the bank statement
balance, then add the deposit in transit: $26,000 - $10,000 - $200 + $2,000 equals $18,200. This calculation illustrates
the reconciliation process essential in bank statement analysis.
Q6 QUESTION 6 OF 111
Page 3
, When preparing a bank reconciliation, which of the following items will affect the cash balance per the bank?
CORRECT ANSWER
Outstanding checks
RATIONALE
Outstanding checks reduce the cash balance reported by the bank because they represent payments that have been
issued but not yet processed by the bank, thereby creating a discrepancy between the company's records and the bank's
records. Recognizing this timing difference is critical for accurate bank reconciliation.
Q7 QUESTION 7 OF 111
At what point does the voucher system begin?
CORRECT ANSWER
Authorization
RATIONALE
Authorization initiates the voucher system by formally granting permission for services or goods to be provided,
establishing accountability and ensuring that resources are allocated according to predefined criteria. This process is
critical for maintaining financial oversight and operational efficiency within the system.
Q8 QUESTION 8 OF 111
When reconciling the bank statement against a company's book, checks that have been written by the company
and marked paid by the bank are referred to as _____________. A check that had been received from a customer,
deposited into the bank account and then was subsequently charged against the company bank account is known
as a(n) _______________.
CORRECT ANSWER
canceled checks; NSF check.
RATIONALE
Canceled checks represent payments that have cleared the bank, confirming that the funds have been disbursed from the
company's account, while an NSF check indicates insufficient funds, leading to a returned payment that affects cash flow
and reconciliation processes. Understanding these terms is critical for accurate financial management and bank
reconciliation.
Page 4
