Chap 7 Quiz Flashcards
What is Bank charges
A fee that the bank imposes on a business for serving the business
What is ‘Cheque not yet credited’
A cheque deposited by the business not recorded by the bank yet
What is ‘Cheque not yet presented’
A cheque issued to a creditor who has not cashed in and hence not recorded by the bank
What is “Direct deposit’
Deposits made by debtors directly into the bank
What is ‘Direct payment’
Money paid directly by the bank to a creditor
What is ‘interest income’
Money paid by the bank to the business for keeping deposits with the bank
When cash is deposited, the bank statement will show a ______ entry and conversely when cash is withdraw, it will show a _________ entry
credit; debit
A bank interest expense will cause the bank account balance to be higher or lower than the bank statement balance
higher
A bank interest income will cause the bank account balance to be higher or lower than the bank statement balance
lower
A cheque not yet credited will cause the bank account balance to be higher or lower than the bank statement balance
higher
A cheque not yet presented will cause the bank account balance to be higher or lower than the bank statement balance
lower
A Direct deposit will cause the bank account balance to be higher or lower than the bank statement balance
lower
A Direct payemnt will cause the bank account balance to be higher or lower than the bank statement balance
higher
A Dishonoured cheque will cause the bank account balance to be higher or lower than the bank statement balance
higher
Which of the following will be recorded in the bank reconcilliation statement? Cheques not yet credited Direct payments Credit transfers Dishonoured cheques
Cheques not yet credited
