Chapter 5 AP and EOC Questions with
Quality Answers 2025/2026 Updated.
In preparing a bank reconciliation, the adjusted cash balance per bank is $9,685. If the cash
balance per bank statement is $11,873 and deposits in transit are $3,429, what amount
represents outstanding checks for the most recent banking period?
A)$5,617
B)$7,821
C) $6,256
D) $2,188 - Answer A) 5,617
While reconciling the bank statement against the company book, the employee identified
several checks written by the company were marked paid by the bank. In addition, the
employee found that the customer wrote one of the checks and deposited it several days ago,
which was not added to the company's bank statement balance. What is one potential
difference between these checks?
A) The checks paid by the bank are referred to as outstanding checks whereas, the check not
added to the account was a canceled check.
B) The checks paid by the bank are NSF checks whereas, the check not added to the account is
also known as an outstanding check.
C) The checks paid by the bank are referred to as canceled checks whereas, the check not added
to the account was an NSF check.
D) The checks paid by the bank are referred to as outstanding checks whereas, the check not
added to the account was an NSF check. - Answer C) The checks paid by the bank are
referred to as canceled checks whereas, the check not added to the account was an NSF check.
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?
A) $1,863
B) $4,688
C) $12,966
, What is the most likely reason for this lack of reconciliation between the books and the bank
statement?
A) fraud by the bank
B) time lag
C) an error by the bank
D) an error by the company - Answer B) time lag
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?
A) $16,200
B) $38,200
C) $18,200
D) $20,600 - Answer C) $18,200
A month-end bank statement shows a balance of $45,500. Outstanding checks are $9,500, a
deposit of $3,500 was in transit at month-end, and a deduction error of $250 was made by the
bank against the account. The correct balance in the bank account at the month-end is
_________________.
A) $46,750.
B) $51,500.
C) $39,250.
D) $39,750. - Answer D) $39,750
What does a check marked NSF mean?
A) no signature found
B) not satisfactorily filled out
C) no service fee
D) not sufficient funds - Answer D) not sufficient funds
Quality Answers 2025/2026 Updated.
In preparing a bank reconciliation, the adjusted cash balance per bank is $9,685. If the cash
balance per bank statement is $11,873 and deposits in transit are $3,429, what amount
represents outstanding checks for the most recent banking period?
A)$5,617
B)$7,821
C) $6,256
D) $2,188 - Answer A) 5,617
While reconciling the bank statement against the company book, the employee identified
several checks written by the company were marked paid by the bank. In addition, the
employee found that the customer wrote one of the checks and deposited it several days ago,
which was not added to the company's bank statement balance. What is one potential
difference between these checks?
A) The checks paid by the bank are referred to as outstanding checks whereas, the check not
added to the account was a canceled check.
B) The checks paid by the bank are NSF checks whereas, the check not added to the account is
also known as an outstanding check.
C) The checks paid by the bank are referred to as canceled checks whereas, the check not added
to the account was an NSF check.
D) The checks paid by the bank are referred to as outstanding checks whereas, the check not
added to the account was an NSF check. - Answer C) The checks paid by the bank are
referred to as canceled checks whereas, the check not added to the account was an NSF check.
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?
A) $1,863
B) $4,688
C) $12,966
, What is the most likely reason for this lack of reconciliation between the books and the bank
statement?
A) fraud by the bank
B) time lag
C) an error by the bank
D) an error by the company - Answer B) time lag
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?
A) $16,200
B) $38,200
C) $18,200
D) $20,600 - Answer C) $18,200
A month-end bank statement shows a balance of $45,500. Outstanding checks are $9,500, a
deposit of $3,500 was in transit at month-end, and a deduction error of $250 was made by the
bank against the account. The correct balance in the bank account at the month-end is
_________________.
A) $46,750.
B) $51,500.
C) $39,250.
D) $39,750. - Answer D) $39,750
What does a check marked NSF mean?
A) no signature found
B) not satisfactorily filled out
C) no service fee
D) not sufficient funds - Answer D) not sufficient funds
