A. cDepositor’s checks paid by the bank during the month.

A. Copies of outstanding checks at the end of the month.

B. Copies of bank debit memos issued during the month.
C. Copies of bank credit memos issued during the month
1. A credit memorandum issued by a bank will:
A. Not affect the depositor’s account balance.
B. Increase the depositor’s account balance.
C. Decrease the depositor’s account balance.
D. Be recorded as a debit to Cash on the depositor’s books.
2. The term “outstanding checks” refers to
B. Checks that have been lost in mail or for some other reason have been misplaced.
C. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
D. Depositor checks which have not yet cleared the banking system.
E. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
If the cash balance shown on a company’s accounting records is less than the cor Accounting Review
Materials
A. Bank charges not yet recorded by the company
3. Which will not require an adjusting entry on the depositor’s books?
A. Collection from
B. P 5,000.
C. Deposit of another company is credited to the account of enterprise.
D. Bank service charge
4. Which statement is true?
A. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
B. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
C. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
D. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
5. A proof of cash
A. Is a physical count of currencies on hand on balance sheet date.
B. Is a formal statement showing the total cash receipts during the year.
C. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
D. Is a summary of cash receipts and cash payments.

6. A proof of cash would be useful for

A. Discovering cash receipts that have not been recorded in the journal.
B. Discovering time lag in making deposits.
C. Discovering cash receipts and cash payments.
D. Discovering an inadequate separation of incompatible duties of employees.
7. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
8. The inventories of a service provider may simply be described as
A. generally accepted
B. is debited when petty cash fund proves out over
C. is debited when petty cash fund proves out short
D. is a contra account to Cash

9. A proof of cash would be useful for

E.Discovering cash receipts that have not been recorded in the journal.
F.Discovering time lag in making deposits.
G.Discovering cash receipts and cash payments.
H.Discovering an inadequate separation of incompatible duties of employees.
10. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
11. The inventories of a service provider may simply be described as
E. generally accepted
F. is debited when petty cash fund proves out over
G. is debited when petty cash fund proves out short
H. is a contra account to Cash
I. orted by the bank, all other things being equal.
E. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
F. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
12. A proof of cash
E. Is a physical count of currencies on hand on balance sheet date.
F. Is a formal statement showing the total cash receipts during the year.
G. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
H. Is a summary of cash receipts and cash payments.
Accounting Review Materials
B. Bank charges not yet recorded by the company
13. Which will not require an adjusting entry on the depositor’s books?
E. Collection from
F. P 5,000.
G. Deposit of another company is credited to the account of enterprise.
H. Bank service charge
14. Which statement is true?
G. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
H. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
I. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
J. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
15. A proof of cash
I. Is a physical count of currencies on hand on balance sheet date.
J. Is a formal statement showing the total cash receipts during the year.
K. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
L. Is a summary of cash receipts and cash payments.

16. A proof of cash would be useful for

J. Discovering cash receipts that have not been recorded in the journal.
K. Discovering time lag in making deposits.
L. Discovering cash receipts and cash payments.
M. Discovering an inadequate separation of incompatible duties of employees.
17. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
18. The inventories of a service provider may simply be described as
I. generally accepted
J. is debited when petty cash fund proves out over
K. is debited when petty cash fund proves out short
L. is a contra account to Cash
19. The journal entries for a bank reconciliation
A. are taken from the balance per bank section only
B. may include a debit to office expense for bank service charges
 C. may include a credit to Accounts Receivable for an NSF check
D. may include a debit to Accounts Payable for an NSF check
20. Which of the following items would not accompany a monthly bank statement?
D. Depositor’s checks paid by the bank during the month.
E. Copies of outstanding checks at the end of the month.
F. Copies of bank debit memos issued during the month.
G. Copies of bank credit memos issued during the month
21. A credit memorandum issued by a bank will:
E. Not affect the depositor’s account balance.
F. Increase the depositor’s account balance.
G. Decrease the depositor’s account balance.
H. Be recorded as a debit to Cash on the depositor’s books.
22. The term “outstanding checks” refers to
F. Checks that have been lost in mail or for some other reason have been misplaced.
G. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
H. Depositor checks which have not yet cleared the banking system.
I. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
If the cash balance shown on a company’s accounting records is less than the cor Accounting Review
Materials
C. Bank charges not yet recorded by the company
23. Which will not require an adjusting entry on the depositor’s books?
I. Collection from
J. P 5,000.
K. Deposit of another company is credited to the account of enterprise.
L. Bank service charge
24. Which statement is true?
K. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
L. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
M. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
N. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
25. A proof of cash
M. Is a physical count of currencies on hand on balance sheet date.
N. Is a formal statement showing the total cash receipts during the year.
O. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
P. Is a summary of cash receipts and cash payments.

26. A proof of cash would be useful for

N.
Discovering cash receipts that have not been recorded in the journal.
O.
Discovering time lag in making deposits.
P.
Discovering cash receipts and cash payments.
Q.
Discovering an inadequate separation of incompatible duties of employees.
27. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
Recognized as component of cost of sales in the period the writedown or Accounting Review Materials
D. Bank charges not yet recorded by the company
28. Which will not require an adjusting entry on the depositor’s books?
M. Collection from
N. P 5,000.
O. Deposit of another company is credited to the account of enterprise.
P. Bank service charge
29. Which statement is true?
O. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
P. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
Q. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
R. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
30. A proof of cash
Q. Is a physical count of currencies on hand on balance sheet date.
R. Is a formal statement showing the total cash receipts during the year.
 S. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
T. Is a summary of cash receipts and cash payments.

31. A proof of cash would be useful for

R. Discovering cash receipts that have not been recorded in the journal.
S. Discovering time lag in making deposits.
T. Discovering cash receipts and cash payments.
U. Discovering an inadequate separation of incompatible duties of employees.
32. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
33. The inventories of a service provider may simply be described as
M. generally accepted
N. is debited when petty cash fund proves out over
O. is debited when petty cash fund proves out short
P. is a contra account to Cash
34. The journal entries for a bank reconciliation
E. are taken from the balance per bank section only
F. may include a debit to office expense for bank service charges
G. may include a credit to Accounts Receivable for an NSF check
H. may include a debit to Accounts Payable for an NSF check
35. Which of the following items would not accompany a monthly bank statement?
H. Depositor’s checks paid by the bank during the month.
I. Copies of outstanding checks at the end of the month.
J. Copies of bank debit memos issued during the month.
K. Copies of bank credit memos issued during the month
36. A credit memorandum issued by a bank will:
I. Not affect the depositor’s account balance.
J. Increase the depositor’s account balance.
K. Decrease the depositor’s account balance.
L. Be recorded as a debit to Cash on the depositor’s books.
37. The term “outstanding checks” refers to
J. Checks that have been lost in mail or for some other reason have been misplaced.
K. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
L. Depositor checks which have not yet cleared the banking system.
M. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
If the cash balance shown on a company’s accounting records is less than the cor Accounting Review
Materials
E. Bank charges not yet recorded by the company
38. Which will not require an adjusting entry on the depositor’s books?
Q. Collection from
R. P 5,000.
S. Deposit of another company is credited to the account of enterprise.
T. Bank service charge
39. Which statement is true?
S. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
T. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
U. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
V. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
40. A proof of cash
U. Is a physical count of currencies on hand on balance sheet date.
V. Is a formal statement showing the total cash receipts during the year.
W. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
X. Is a summary of cash receipts and cash payments.

41. A proof of cash would be useful for

V. Discovering cash receipts that have not been recorded in the journal.
W. Discovering time lag in making deposits.
X. Discovering cash receipts and cash payments.
Y. Discovering an inadequate separation of incompatible duties of employees.
42. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
43. The inventories of a service provider may simply be described as
Q. generally accepted
R. is debited when petty cash fund proves out over
S. is debited when petty cash fund proves out short
T. is a contra account to Cash
Accounting Review Materials
F. Bank charges not yet recorded by the company
44. Which will not require an adjusting entry on the depositor’s books?
U. Collection from
V. P 5,000.
W. Deposit of another company is credited to the account of enterprise.
X. Bank service charge
45. Which statement is true?
W. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
 X. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
Y. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
Z. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
46. A proof of cash
Y. Is a physical count of currencies on hand on balance sheet date.
Z. Is a formal statement showing the total cash receipts during the year.
AA. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
BB. Is a summary of cash receipts and cash payments.

47. A proof of cash would be useful for

Z. Discovering cash receipts that have not been recorded in the journal.
AA. Discovering time lag in making deposits.
BB. Discovering cash receipts and cash payments.
CC.Discovering an inadequate separation of incompatible duties of employees.
48. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
49. The inventories of a service provider may simply be described as
U. generally accepted
V. is debited when petty cash fund proves out over
W. is debited when petty cash fund proves out short
X. is a contra account to Cash
50. The journal entries for a bank reconciliation
I. are taken from the balance per bank section only
J. may include a debit to office expense for bank service charges
K. may include a credit to Accounts Receivable for an NSF check
L. may include a debit to Accounts Payable for an NSF check
51. Which of the following items would not accompany a monthly bank statement?
L. Depositor’s checks paid by the bank during the month.
M. Copies of outstanding checks at the end of the month.
N. Copies of bank debit memos issued during the month.
O. Copies of bank credit memos issued during the month
52. A credit memorandum issued by a bank will:
M. Not affect the depositor’s account balance.
N. Increase the depositor’s account balance.
O. Decrease the depositor’s account balance.
P. Be recorded as a debit to Cash on the depositor’s books.
53. The term “outstanding checks” refers to
N. Checks that have been lost in mail or for some other reason have been misplaced.
O. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
P. Depositor checks which have not yet cleared the banking system.
Q. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
If the cash balance shown on a company’s accounting records is less than the cor Accounting Review
Materials
G. Bank charges not yet recorded by the company
54. Which will not require an adjusting entry on the depositor’s books?
Y. Collection from
Z. P 5,000.
AA. Deposit of another company is credited to the account of enterprise.
BB. Bank service charge
55. Which statement is true?
AA. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
BB. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
CC.An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
DD.The cash amount shown in the balance sheet must be the balance reported in the bank statement.
56. A proof of cash
CC.Is a physical count of currencies on hand on balance sheet date.
DD.Is a formal statement showing the total cash receipts during the year.
EE. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
FF. Is a summary of cash receipts and cash payments.

57. A proof of cash would be useful for

DD.Discovering cash receipts that have not been recorded in the journal.
EE. Discovering time lag in making deposits.
FF. Discovering cash receipts and cash payments.
GG. Discovering an inadequate separation of incompatible duties of employees.
58. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
59. The inventories of a service provider may simply be described as
Y. generally accepted
Z. is debited when petty cash fund proves out over
AA. is debited when petty cash fund proves out short
BB. is a contra account to Cash
a. loss occurs.
b. Recognized as operating expense in the period the writedown or loss occurs.
60. The inventories of a service provider may simply be described as
CC.generally accepted
DD.is debited when petty cash fund proves out over
EE. is debited when petty cash fund proves out short
FF. is a contra account to Cash

61. A proof of cash would be useful for

HH.Discovering cash receipts that have not been recorded in the journal.
II. Discovering time lag in making deposits.
 JJ. Discovering cash receipts and cash payments.
KK. Discovering an inadequate separation of incompatible duties of employees.
62. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
63. The inventories of a service provider may simply be described as
GG. generally accepted
HH.is debited when petty cash fund proves out over
II. is debited when petty cash fund proves out short
JJ. is a contra account to Cash
64. The journal entries for a bank reconciliation
M. are taken from the balance per bank section only
N. may include a debit to office expense for bank service charges
O. may include a credit to Accounts Receivable for an NSF check
P. may include a debit to Accounts Payable for an NSF check
65. Which of the following items would not accompany a monthly bank statement?
P. Depositor’s checks paid by the bank during the month.
Q. Copies of outstanding checks at the end of the month.
R. Copies of bank debit memos issued during the month.
S. Copies of bank credit memos issued during the month
66. A credit memorandum issued by a bank will:
Q. Not affect the depositor’s account balance.
R. Increase the depositor’s account balance.
S. Decrease the depositor’s account balance.
T. Be recorded as a debit to Cash on the depositor’s books.
67. The term “outstanding checks” refers to
R. Checks that have been lost in mail or for some other reason have been misplaced.
S. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
T. Depositor checks which have not yet cleared the banking system.
U. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
CC.If the cash balance shown on a company’s accounting records is less than the correct cash balance and
neither the company nor the bank has made any errors, there must be charge
68. Which statement is true?
EE. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
FF. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
GG. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
HH.The cash amount shown in the balance sheet must be the balance reported in the bank statement.
69. A proof of cash
GG. Is a physical count of currencies on hand on balance sheet date.
HH.Is a formal statement showing the total cash receipts during the year.
II. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
JJ. Is a summary of cash receipts and cash payments.

70. A proof of cash would be useful for

LL. Discovering cash receipts that have not been recorded in the journal.
MM. Discovering time lag in making deposits.
Accounting Review Materials
H. Bank charges not yet recorded by the company
71. Which will not require an adjusting entry on the depositor’s books?
DD.Collection from
EE. P 5,000.
FF. Deposit of another company is credited to the account of enterprise.
GG. Bank service charge
72. Which statement is true?
II. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
JJ. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
KK. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
LL. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
73. A proof of cash
KK. Is a physical count of currencies on hand on balance sheet date.
LL. Is a formal statement showing the total cash receipts during the year.
MM. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
NN.Is a summary of cash receipts and cash payments.

74. A proof of cash would be useful for

NN.Discovering cash receipts that have not been recorded in the journal.
OO. Discovering time lag in making deposits.
PP. Discovering cash receipts and cash payments.
QQ. Discovering an inadequate separation of incompatible duties of employees.
75. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
 a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
76. The inventories of a service provider may simply be described as
KK. generally accepted
LL. is debited when petty cash fund proves out over
MM. is debited when petty cash fund proves out short
NN.is a contra account to Cash
77. The journal entries for a bank reconciliation
Q. are taken from the balance per bank section only
R. may include a debit to office expense for bank service charges
S. may include a credit to Accounts Receivable for an NSF check
T. may include a debit to Accounts Payable for an NSF check
78. Which of the following items would not accompany a monthly bank statement?
T. Depositor’s checks paid by the bank during the month.
U. Copies of outstanding checks at the end of the month.
V. Copies of bank debit memos issued during the month.
W. Copies of bank credit memos issued during the month
79. A credit memorandum issued by a bank will:
U. Not affect the depositor’s account balance.
V. Increase the depositor’s account balance.
W. Decrease the depositor’s account balance.
X. Be recorded as a debit to Cash on the depositor’s books.
80. The term “outstanding checks” refers to
V. Checks that have been lost in mail or for some other reason have been misplaced.
W. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
X. Depositor checks which have not yet cleared the banking system.
Y. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
HH.If the cash balance shown on a company’s accounting records is less than the correct cash balance and
neither the company nor the bank has made any errors, there must be charge
81. Which statement is true?
MM. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
NN.Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
OO. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
PP. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
82. A proof of cash
OO. Is a physical count of currencies on hand on balance sheet date.
PP. Is a formal statement showing the total cash receipts during the year.
QQ. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
RR.Is a summary of cash receipts and cash payments.

83. A proof of cash would be useful for

RR.Discovering cash receipts that have not been recorded in the journal.
SS. Discovering time lag in making deposits.
Accounting Review Materials
I.Bank charges not yet recorded by the company
84. Which will not require an adjusting entry on the depositor’s books?
II. Collection from
JJ. P 5,000.
KK. Deposit of another company is credited to the account of enterprise.
LL. Bank service charge
85. Which statement is true?
QQ. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
RR.Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
SS. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
TT. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
86. A proof of cash
SS. Is a physical count of currencies on hand on balance sheet date.
TT. Is a formal statement showing the total cash receipts during the year.
UU.Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
VV. Is a summary of cash receipts and cash payments.

87. A proof of cash would be useful for

TT. Discovering cash receipts that have not been recorded in the journal.
UU.Discovering time lag in making deposits.
VV. Discovering cash receipts and cash payments.
WW. Discovering an inadequate separation of incompatible duties of employees.
88. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
 a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
89. The inventories of a service provider may simply be described as
OO. generally accepted
PP. is debited when petty cash fund proves out over
QQ. is debited when petty cash fund proves out short
RR.is a contra account to Cash
90. The journal entries for a bank reconciliation
U. are taken from the balance per bank section only
V. may include a debit to office expense for bank service charges
W. may include a credit to Accounts Receivable for an NSF check
X. may include a debit to Accounts Payable for an NSF check
91. Which of the following items would not accompany a monthly bank statement?
X. Depositor’s checks paid by the bank during the month.
Y. Copies of outstanding checks at the end of the month.
Z. Copies of bank debit memos issued during the month.
AA. Copies of bank credit memos issued during the month
92. A credit memorandum issued by a bank will:
Y. Not affect the depositor’s account balance.
Z. Increase the depositor’s account balance.
AA. Decrease the depositor’s account balance.
BB. Be recorded as a debit to Cash on the depositor’s books.
93. The term “outstanding checks” refers to
Z. Checks that have been lost in mail or for some other reason have been misplaced.
AA. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
BB. Depositor checks which have not yet cleared the banking system.
CC.Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
MM. If the cash balance shown on a company’s accounting records is less than the correct cash
balance and neither the company nor the bank has made any errors, there must be charge
94. Which statement is true?
UU.Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
VV. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
WW. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
XX. The cash amount shown in the balance sheet must be the balance reported in the bank statement.
95. A proof of cash
WW. Is a physical count of currencies on hand on balance sheet date.
XX. Is a formal statement showing the total cash receipts during the year.
YY. Is a four column bank reconciliation showing the reconciliation of cash balance per book and per bank at
the beginning and end of the current month and reconciliation of cash receipts and cash disbursements
of the bank and the depositor during the current month.
ZZ. Is a summary of cash receipts and cash payments.

96. A proof of cash would be useful for

XX. Discovering cash receipts that have not been recorded in the journal.
YY. Discovering time lag in making deposits.
Accounting Review Materials
J.Bank charges not yet recorded by the company
97. Which will not require an adjusting entry on the depositor’s books?
NN.Collection from
OO. P 5,000.
PP. Deposit of another company is credited to the account of enterprise.
QQ. Bank service charge
98. Which statement is true?
YY. Bank service charge will cause the cash balance per ledger to be higher than that reported by the bank,
all other things being equal.
ZZ. Outstanding checks will cause balance per ledger to be greater than the balance reported by the bank,
all other things being equal.
AAA. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
BBB. The cash amount shown in the balance sheet must be the balance reported in the bank
statement.
99. A proof of cash
AAA. Is a physical count of currencies on hand on balance sheet date.
BBB. Is a formal statement showing the total cash receipts during the year.
CCC. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
DDD. Is a summary of cash receipts and cash payments.

100. A proof of cash would be useful for

ZZ. Discovering cash receipts that have not been recorded in the journal.
AAA. Discovering time lag in making deposits.
BBB. Discovering cash receipts and cash payments.
CCC. Discovering an inadequate separation of incompatible duties of employees.
101. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
102. The inventories of a service provider may simply be described as
SS. generally accepted
TT. is debited when petty cash fund proves out over
UU.is debited when petty cash fund proves out short
VV. is a contra account to Cash
103. The journal entries for a bank reconciliation
Y. are taken from the balance per bank section only
Z. may include a debit to office expense for bank service charges
AA. may include a credit to Accounts Receivable for an NSF check
BB. may include a debit to Accounts Payable for an NSF check
104. Which of the following items would not accompany a monthly bank statement?
BB. Depositor’s checks paid by the bank during the month.
CC.Copies of outstanding checks at the end of the month.
DD.Copies of bank debit memos issued during the month.
EE. Copies of bank credit memos issued during the month
105. A credit memorandum issued by a bank will:
CC. Not affect the depositor’s account balance.
DD. Increase the depositor’s account balance.
EE. Decrease the depositor’s account balance.
FF. Be recorded as a debit to Cash on the depositor’s books.
106. The term “outstanding checks” refers to
DD.Checks that have been lost in mail or for some other reason have been misplaced.
EE. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
FF. Depositor checks which have not yet cleared the banking system.
GG. Depositor checks which have been processed by the bank but have not yet been recorded by
the depositor.
RR.If the cash balance shown on a company’s accounting records is less than the correct cash balance and
neither the company nor the bank has made any errors, there must be charge
107. Which statement is true?
CCC. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
DDD. Outstanding checks will cause balance per ledger to be greater than the balance reported by
the bank, all other things being equal.
EEE. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
FFF. The cash amount shown in the balance sheet must be the balance reported in the bank
statement.
108. A proof of cash
EEE. Is a physical count of currencies on hand on balance sheet date.
FFF. Is a formal statement showing the total cash receipts during the year.
GGG. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
HHH. Is a summary of cash receipts and cash payments.

109. A proof of cash would be useful for

DDD. Discovering cash receipts that have not been recorded in the journal.
EEE. Discovering time lag in making deposits.
SS. rect cash balance and neither the company nor the bank has made any errors, there must be charge
110. Which statement is true?
GGG. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
HHH. Outstanding checks will cause balance per ledger to be greater than the balance reported by
the bank, all other things being equal.
III. An error made by a bank by charging an amount to the depositor’s account requires a correcting entry in
the depositor’s own records.
JJJ.The cash amount shown in the balance sheet must be the balance reported in the bank statement.
111. A proof of cash
III. Is a physical count of currencies on hand on balance sheet date.
JJJ.Is a formal statement showing the total cash receipts during the year.
KKK. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
LLL. Is a summary of cash receipts and cash payments.

112. A proof of cash would be useful for

FFF. Discovering cash receipts that have not been recorded in the journal.
GGG. Discovering time lag in making deposits.
HHH. Discovering cash receipts and cash payments.
III. Discovering an inadequate separation of incompatible duties of employees.
113. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
114. The inventories of a service provider may simply be described as
 WW. generally accepted
XX. is debited when petty cash fund proves out over
YY. is debited when petty cash fund proves out short
ZZ. is a contra account to Cash
115. The journal entries for a bank reconciliation
CC.are taken from the balance per bank section only
DD.may include a debit to office expense for bank service charges
EE. may include a credit to Accounts Receivable for an NSF check
FF. may include a debit to Accounts Payable for an NSF check
116. Which of the following items would not accompany a monthly bank statement?
FF. Depositor’s checks paid by the bank during the month.
GG. Copies of outstanding checks at the end of the month.
HH.Copies of bank debit memos issued during the month.
II. Copies of bank credit memos issued during the month
117. A credit memorandum issued by a bank will:
GG. Not affect the depositor’s account balance.
HH. Increase the depositor’s account balance.
II. Decrease the depositor’s account balance.
JJ. Be recorded as a debit to Cash on the depositor’s books.
118. The term “outstanding checks” refers to
HH.Checks that have been lost in mail or for some other reason have been misplaced.
II. Customer checks which have been returned by the bank because the customer’s bank would not honor
them.
JJ. Depositor checks which have not yet cleared the banking system.
KK. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
119. If the cash balance shown on a company’s accounting records is less than the correct cash balance and
neither the company nor the bank has made any errors, there must be
K. Deposits credited by the bank but not yet recorded by the company.
L. Deposits in transit
M. Outstanding checks
N. Bank charges not yet recorded by the company
120. Which will not require an adjusting entry on the depositor’s books?
TT. Collection from customer deposited in the amount of P 100,000 but recorded by the depositor only as P
10,000.
UU.Check in payment of account payable amounting to P 50,000 is recorded by the depositor as P 5,000.
VV. charge
121. Which statement is true?
KKK. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
LLL. Outstanding checks will cause balance per ledger to be greater than the balance reported by
the bank, all other things being equal.
MMM. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
NNN. The cash amount shown in the balance sheet must be the balance reported in the bank
statement.
122. A proof of cash
MMM. Is a physical count of currencies on hand on balance sheet date.
NNN. Is a formal statement showing the total cash receipts during the year.
OOO. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
PPP. Is a summary of cash receipts and cash payments.

123. A proof of cash would be useful for

JJJ.Discovering cash receipts that have not been recorded in the journal.
KKK. Discovering time lag in making deposits.
LLL. Discovering cash receipts and cash payments.
MMM. Discovering an inadequate separation of incompatible duties of employees.
124. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
125. The inventories of a service provider may simply be described as
AAA. generally accepted
BBB. is debited when petty cash fund proves out over
CCC. is debited when petty cash fund proves out short
DDD. is a contra account to Cash
126. The journal entries for a bank reconciliation
GG. are taken from the balance per bank section only
HH.may include a debit to office expense for bank service charges
II. may include a credit to Accounts Receivable for an NSF check
JJ. may include a debit to Accounts Payable for an NSF check
127. Which of the following items would not accompany a monthly bank statement?
JJ. Depositor’s checks paid by the bank during the month.
KK. Copies of outstanding checks at the end of the month.
LL. Copies of bank debit memos issued during the month.
MM. Copies of bank credit memos issued during the month
128. A credit memorandum issued by a bank will:
KK. Not affect the depositor’s account balance.
LL. Increase the depositor’s account balance.
MM. Decrease the depositor’s account balance.
NN. Be recorded as a debit to Cash on the depositor’s books.
129. The term “outstanding checks” refers to
LL. Checks that have been lost in mail or for some other reason have been misplaced.
MM. Customer checks which have been returned by the bank because the customer’s bank would
not honor them.
NN.Depositor checks which have not yet cleared the banking system.
OO. Depositor checks which have been processed by the bank but have not yet been recorded by
the depositor.
130. If the cash balance shown on a company’s accounting records is less than the correct cash balance and
neither the company nor the bank has made any errors, there must be
O. Deposits credited by the bank but not yet recorded by the company.
P. Deposits in transit
Q. Outstanding checks
R. Bank charges not yet recorded by the company
131. Which will not require an adjusting entry on the depositor’s books?
WW. Collection from customer deposited in the amount of P 100,000 but recorded by the depositor
only as P 10,000.
XX. Check in payment of account payable amounting to P 50,000 is recorded by the depositor as P 5,000.
132.
S. Deposits credited by the bank but not yet recorded by the company.
T. Deposits in transit
U. Outstanding checks
V. Bank charges not yet recorded by the company
133. Which will not require an adjusting entry on the depositor’s books?
YY. Collection from customer deposited in the amount of P 100,000 but recorded by the depositor only as P
10,000.
ZZ. Check in payment of account payable amounting to P 50,000 is recorded by the depositor as P 5,000.
AAA. Deposit of another company is credited to the account of enterprise.
BBB. Bank service charge
134. Which statement is true?
OOO. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
PPP. Outstanding checks will cause balance per ledger to be greater than the balance reported by
the bank, all other things being equal.
QQQ. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
RRR. The cash amount shown in the balance sheet must be the balance reported in the bank
statement.
135. A proof of cash
QQQ. Is a physical count of currencies on hand on balance sheet date.
RRR. Is a formal statement showing the total cash receipts during the year.
SSS. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
TTT. Is a summary of cash receipts and cash payments.

136. A proof of cash would be useful for

NNN. Discovering cash receipts that have not been recorded in the journal.
OOO. Discovering time lag in making deposits.
PPP. Discovering cash receipts and cash payments.
QQQ. Discovering an inadequate separation of incompatible duties of employees.
137. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
138. The inventories of a service provider may simply be described as
EEE. generally accepted
 FFF. is debited when petty cash fund proves out over
GGG. is debited when petty cash fund proves out short
HHH. is a contra account to Cash
139. The journal entries for a bank reconciliation
KK. are taken from the balance per bank section only
LL. may include a debit to office expense for bank service charges
MM. may include a credit to Accounts Receivable for an NSF check
NN.may include a debit to Accounts Payable for an NSF check
140. Which of the following items would not accompany a monthly bank statement?
NN.Depositor’s checks paid by the bank during the month.
OO. Copies of outstanding checks at the end of the month.
PP. Copies of bank debit memos issued during the month.
QQ. Copies of bank credit memos issued during the month
141. A credit memorandum issued by a bank will:
OO. Not affect the depositor’s account balance.
PP. Increase the depositor’s account balance.
QQ. Decrease the depositor’s account balance.
RR. Be recorded as a debit to Cash on the depositor’s books.
142. The term “outstanding checks” refers to
PP. Checks that have been lost in mail or for some other reason have been misplaced.
QQ. Customer checks which have been returned by the bank because the customer’s bank would
not honor them.
RR.Depositor checks which have not yet cleared the banking system.
SS. Depositor checks which have been processed by the bank but have not yet been recorded by the
depositor.
143. If the cash balance shown on a company’s accounting records is less than the correct cash balance
and neither the company nor the bank has made any errors, there must be
W. Deposits credited by the bank but not yet recorded by the company.
X. Deposits in transit
Y. Outstanding checks
Z. Bank charges not yet recorded by the company
144. Which will not require an adjusting entry on the depositor’s books?
CCC. Collection from customer deposited in the amount of P 100,000 but recorded by the depositor
only as P 10,000.
DDD. Check in payment of account payable amounting to P 50,000 is recorded by the depositor as
P 5,000.
EEE. Deposit of another company is credited to the account of enterprise.
FFF. Bank service charge
145. Which statement is true?
SSS. Bank service charge will cause the cash balance per ledger to be higher than that reported by
the bank, all other things being equal.
TTT. Outstanding checks will cause balance per ledger to be greater than the balance reported by
the bank, all other things being equal.
UUU. An error made by a bank by charging an amount to the depositor’s account requires a
correcting entry in the depositor’s own records.
VVV. The cash amount shown in the balance sheet must be the balance reported in the bank
statement.
146. A proof of cash
UUU. Is a physical count of currencies on hand on balance sheet date.
VVV. Is a formal statement showing the total cash receipts during the year.
WWW. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
XXX. Is a summary of cash receipts and cash payments.

147. A proof of cash would be useful for

RRR. Discovering cash receipts that have not been recorded in the journal.
SSS. Discovering time lag in making deposits.
TTT. Discovering cash receipts and cash payments.
UUU. Discovering an inadequate separation of incompatible duties of employees.
148. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
149. The inventories of a service provider may simply be described as
YYY. r.
ZZZ. Is a four column bank reconciliation showing the reconciliation of cash balance per book and
per bank at the beginning and end of the current month and reconciliation of cash receipts and cash
disbursements of the bank and the depositor during the current month.
AAAA. Is a summary of cash receipts and cash payments.

150. A proof of cash would be useful for

VVV. Discovering cash receipts that have not been recorded in the journal.
 WWW. Discovering time lag in making deposits.
XXX. Discovering cash receipts and cash payments.
YYY. Discovering an inadequate separation of incompatible duties of employees.
151. The amount of any writedown of inventory to net realizable value and all losses of inventory shall be
a. Deferred until the related inventory is sold.
b. Recognized as other expense in the period the witedown or loss occurs.
c. Recognized as component of cost of sales in the period the writedown or loss occurs.
d. Recognized as operating expense in the period the writedown or loss occurs.
152. The inventories of a service provider may simply be described as
a. Unbilled services c. Billed services
b. Work in progress d. Services inventory
153. Freight and other handling charges incurred in the transfer of goods from the consignor to consignee
are
 a. Inventoriable by the consignor
b. Expense on the part of the consignor
c. Inventoriable by the consignee
d. Expense on the part of the consignee
154. Reporting inventories at amount greater than cost can best be justified on the basis of
a. Industry practice c. Verifiability
b. Matching d. Substance over form
155. Which of the following terms represents the deduction from the invoice price of purchased goods
granted by suppliers for early payment?
a. Trade discount c. Sales discount
b. Purchase returns and allowances d. Purchase discount
156. A company purchases items it intends to resell at a profit. Such a transaction is an example of the
process of  
a. the acquisition/sales process c. the sales/payment process
b. the acquisition/payment process d. the acquisition/collection process
157. A company has two choices when it comes to physically accounting for and reconciling its inventory
and updating its records. The method that updates inventory aftervv each sale that is made is commonly
known as the
a. perpetual inventory method c. weighted average method
b. periodic inventory method d. first in, first out inventory method
158. Which one of the following costs is not considered part of inventory?
a. Freight costs to have the goods delivered to our warehouse.
b. Set up cost for displaying the inventory.
c. Both freight costs to have the goods delivered to our warehouse and set up cost for
displaying inventory is considered costs of inventory.
d. Neither freight costs to have the goods delivered to our warehouse nor set up cost for
displaying inventory are considered costs of inventory.
159. This cost flow assumption conforms to most actual physical inventory flows.
a. FIFO method c. Weighted-
b. Replacement average method
cost method d. Specific
identification method
160. 1st Statement: Goods in transit shipped FOB shipping point should be included in the buyer’s ending
inventory.
2nd Statement: Under the periodic inventory system, cost of goods sold is not recorded until the end
of the accounting period.
a. True; False c. True; True
b. False; True d. False; False