MODULE 2

Question 1

a report that is prepared for the purpose of bringing the balances of
(a) cash per records
(b) per bank statement agreement

Answer 1

bank reconciliation statement

Question 2

what balances does bank reconciliation statement bringing

Answer 2

cash per records
per bank statement agreement

Question 3

2 common causes of discrepancy

Answer 3

time lag
errors in the entries

Question 4

prevent one parties from recording the transaction to the same period as the other party

Answer 4

time lag

Question 5

either party made this mistakes in recording transaction

Answer 5

errors in the entries

Question 6

cash balances in the accounting records as the end of the current month

Answer 6

balance per books, end

Question 7

the cash balance as of the end of the current month in the financial reports

Answer 7

balance per bank statement, end.

Question 8

are additions made by the bank to the depositor’s bank account but not yet recorded by the depositor

Answer 8

credit memos

Question 9

• collections made by the bank on behalf of the depositor
• interest income earned by the depositor
• proceeds from loan directly credited or added the bank to the depositor’s account

Answer 9

credit memos

Question 10

are deductions made by the bank to the depositors bank acc but not yet recorded by the depositor

Answer 10

debit memos

Question 11

a. bank service charges
b. no sufficient bank checks (NSF) or drawn against insufficient funds check (DAIF)
c. automatic debits
d. payment of loans

Answer 11

debit memos

Question 12

no sufficient bank checks (NSF) or…

Answer 12

draw against insufficient funds check (DAIF)

Question 13

errors committed by the depositor

Answer 13

book errors

Question 14

deposits already made but not yet received by the bank, or received by the bank but not yet credited to the depositor’s bank acc

Answer 14

deposits in transit

Question 15

checks drawn and released to payers but are not yet encashed with the bank

Answer 15

outstanding checks

Question 16

exclude certified checks and stale checks

Answer 16

outstanding checks

Question 17

errors committed by the bank

Answer 17

bank errors

Question 18

correction of erros

Answer 18

inverse relationship
direct relationship

Question 19

to correct an overstated credit, you need make a debit

to correct an overstated debit, you need make a credit

Answer 19

inverse relationship

Question 20

to correct an understated credit, you need to make a credit

to correct an understated debit, you need to make a debit

Answer 20

direct relationship

Question 21

form of bank reconciliation statement

Answer 21

LEFT:
balance per books, end.
Add: credit memos (CM)
Less: Debit memos (DM)
Add/less: Bank errors
ADJUSTED BALANCE

RIGHT:
Bal. per statement end
Add: Deposits in transit (DIT)
Less: Outstanding checks (OC)
Add/less: Bank errors
ADJUSTED BALANCE

Question 22

IDENTIFYING ______ ENSURES THE _______ OF FINANCIAL RECORDS

Answer 22

DISCREPANCIES
ACCURACY

Question 23

___________ THE BANK STATEMENT WITH THE COMPANY’S RECORDS HELP CATCH ______, _____, _____ IN THE ___________

Answer 23

RECONCEILING

ERRORS, MISSIONS, INACURRACIES

ACCOUNTING SYSTEM

Question 24

basic internal controls

Answer 24

bank reconciliation
imprest system
check disbursement voucher
petty cash voucher

Question 25

require that all cash receipts should be deposited intact and all cash disbursement should be made through checks

Answer 25

imprest system

Question 26

used to provide reasonable assurance that each check written is properly authorized

Answer 26

check disbursement voucher

Question 27

use to provide reasonable assurance that all disbursements are properly authorized

Answer 27

petty cash voucher