MBA 5100 - Quiz 5 questions and
answers
a bank reconciliation should be prepared periodically because✔✔any differences
between the depositor's records and the bank's records should be determined, and
any errors made by either party should be discovered and corrected.
Day Time Company records the receipts from cash sales of $41,200 as $12,400.
What adjustment is required by the bank?✔✔no adjustment needed
A cashed check for $1,900 was erroneously recorded by the bank as $9,100. How is
the error adjusted in a bank reconciliation?✔✔the amount is added to the cash
balance in the bank section of the reconciliation
The ratio of cash to monthly cash expense is computed as✔✔cash and cash
equivalents divided by monthly cash expenses
If a company's net cash flows from operating activities is $1,500,000 for a year and
its end of the year cash and cash equivalents balance is $750,000, determine the
company's ratio of cash to monthly cash expenses✔✔6:1
=1,500,000/750,000
=2
2/12 months = 1/6
6:1
The bank statement of Jade Co. shows a balance of $4,555 as of December 31. The
following reconciling items were identified:
(i) deposit not recorded in bank statement, $50
(ii) total outstanding checks, $105
(iii)Check of $100 returned because of not sufficient funds (NSF)
What is the adjusted balance according to the bank statement?✔✔$4,500
= 4,555 + 50 - 105
Denominator in the ratio of cash to monthly cash expense is calculated as
______.✔✔net cash flows from operations/12
Anna erroneously records a check drawn for $385 at $853. This error is adjusted on
the bank reconciliation as✔✔$450 addition to balance per books
A check drawn by a depositor for $810 in payment of a liability was recorded by the
depositor as $180. The $630 difference would be included on the bank reconciliation
as a ______.✔✔deduction from the cash balance per books
answers
a bank reconciliation should be prepared periodically because✔✔any differences
between the depositor's records and the bank's records should be determined, and
any errors made by either party should be discovered and corrected.
Day Time Company records the receipts from cash sales of $41,200 as $12,400.
What adjustment is required by the bank?✔✔no adjustment needed
A cashed check for $1,900 was erroneously recorded by the bank as $9,100. How is
the error adjusted in a bank reconciliation?✔✔the amount is added to the cash
balance in the bank section of the reconciliation
The ratio of cash to monthly cash expense is computed as✔✔cash and cash
equivalents divided by monthly cash expenses
If a company's net cash flows from operating activities is $1,500,000 for a year and
its end of the year cash and cash equivalents balance is $750,000, determine the
company's ratio of cash to monthly cash expenses✔✔6:1
=1,500,000/750,000
=2
2/12 months = 1/6
6:1
The bank statement of Jade Co. shows a balance of $4,555 as of December 31. The
following reconciling items were identified:
(i) deposit not recorded in bank statement, $50
(ii) total outstanding checks, $105
(iii)Check of $100 returned because of not sufficient funds (NSF)
What is the adjusted balance according to the bank statement?✔✔$4,500
= 4,555 + 50 - 105
Denominator in the ratio of cash to monthly cash expense is calculated as
______.✔✔net cash flows from operations/12
Anna erroneously records a check drawn for $385 at $853. This error is adjusted on
the bank reconciliation as✔✔$450 addition to balance per books
A check drawn by a depositor for $810 in payment of a liability was recorded by the
depositor as $180. The $630 difference would be included on the bank reconciliation
as a ______.✔✔deduction from the cash balance per books
