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In: Accounting

Q1. Outstanding cheques from the prior period which clear the bank in the current period? A....

Q1. Outstanding cheques from the prior period which clear the bank in the current period?

A. should be deducted from the balance per bank.

B. should be added to the balance per books.

C. should be deducted from the balance per books.

D. do not affect the current period’s bank reconciliation.

Q2. Which of the following is not true with respect to the reporting of cash?

A. Cash equivalents are normally combined with cash and reported as a current asset.

B. Compensating balances are minimum cash balances required by the bank.

C. Cash overdrafts are reported as contra-assets.

D. Restricted cash can be either a current or a non-current asset, depending on when it is expected to be used.

Q3. When a note is dishonoured (but eventual collection is expected), the payee’s entry includes a?

A. credit to Accounts Receivable.

B. debit to Interest Expense.

C. debit to Cash.

D. credit to Notes Receivable.

Expert Solution

Feedback is welcomed.

ekkarill92 answered 2 years ago

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