Wk 4 – Practice Topic 11- An Example of an Internal Control—
The Bank Reconciliation Quick Check
Points
20
:
Graded on Mar 12 at 19:41
Your Submission:
Submission
(70.00%)
Score:
Grade Time: Mar 12 at 19:41
Submitted On: Mar 12 at 19:41
1. What is petty cash?
o Small amounts of cash kept for miscellaneous purposes
o Cash used to offset the amounts owed to inventory suppliers
o Cash required by banks to be kept on deposit
o Cash used to pay for rent, insurance, and advertising
/
o From a bank’s perspective, customers’ deposits are liabilities. CORRECT ANSWER
o State banking regulations require banks to use different accounting practices.
o Bank accounting practices were created in 1943, before the debit-and-credit rules were adopted.
o Banks are required to guarantee the safety of all customer deposits.
FEEDBACK
(0.0%)
Incorrect. From a bank’s perspective, customers’ deposits are liabilities.
These deposit liabilities are increased with credits and decreased with
debits. So, a debit memo decreases a customer’s account balance, meaning
that the liability to the customer is decreased. The debit-and-credit rules
were adopted LONG before 1943, clear back at least to 1494.
3. What is an “NSF check”?
o A check that a company sends to a supplier that is then deposited in the bank account of the supplier
o A check that is not honored by a bank because of insufficient cash in the check writer’s account
o A check that a company receives from a customer that it then deposits in its bank account
The Bank Reconciliation Quick Check
Points
20
:
Graded on Mar 12 at 19:41
Your Submission:
Submission
(70.00%)
Score:
Grade Time: Mar 12 at 19:41
Submitted On: Mar 12 at 19:41
1. What is petty cash?
o Small amounts of cash kept for miscellaneous purposes
o Cash used to offset the amounts owed to inventory suppliers
o Cash required by banks to be kept on deposit
o Cash used to pay for rent, insurance, and advertising
/
o From a bank’s perspective, customers’ deposits are liabilities. CORRECT ANSWER
o State banking regulations require banks to use different accounting practices.
o Bank accounting practices were created in 1943, before the debit-and-credit rules were adopted.
o Banks are required to guarantee the safety of all customer deposits.
FEEDBACK
(0.0%)
Incorrect. From a bank’s perspective, customers’ deposits are liabilities.
These deposit liabilities are increased with credits and decreased with
debits. So, a debit memo decreases a customer’s account balance, meaning
that the liability to the customer is decreased. The debit-and-credit rules
were adopted LONG before 1943, clear back at least to 1494.
3. What is an “NSF check”?
o A check that a company sends to a supplier that is then deposited in the bank account of the supplier
o A check that is not honored by a bank because of insufficient cash in the check writer’s account
o A check that a company receives from a customer that it then deposits in its bank account
