Answered: When banks allowed the business to…

When banks allowed the business to withdraw money even when the account has no funds is known as _______. a. Accounts payable b. Unearned revenues c. Outstanding expenses d. Bank overdrafts

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 1LTAI

See similar textbooks

Related questions

Q: Capital Select one: a. The money invested in a business b. The ending or relaxing of legal…

A: The amount invested by the owner of the business in a business is know as Capital

Q: When does the business maintain Petty cash? a. Shortage of cash in business b. Business purchased on…

A: The petty cash book is prepared for the daily expenses of the business.

Q: Identify if it will Increase, Decrease or No effect. 1.What will happen to the company’s liquidity…

A: 1.What will happen to the company’s liquidity when some of its products are sold from inventory?…

Q: Deposits in transit a. b. C. d. Select one: a. have been recorded on the company's books but not yet…

A: At the time of reconciliation of bank statement with company own books, there can be some…

Q: which of the following transactions will result in the increase and decrease in liability? a.…

A: Liability is increased when the amount is borrowed when the liability is paid it is decreased by…

Q: Which of the following is not correct about the negative cash flows? O a. You cannot cover your…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: A company uses the direct write-off method to account for bad debts. What is the impact on the…

A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…

Q: A company uses the direct write-off method to account for bad debts. What are the effects on the…

A: Direct write off method indicates that account receivable are directly charged and decreased against…

Q: When we get a line of credit from the bank Check All That Apply a)Assets increase b)Expenses…

A: The assets are the accounts owned by the business. The liabilities are the amount due to be paid to…

Q: If $2,000 is withdrawn from the bank by a customer, the bank's Assets rise O Assets and liabilities…

A: When the customer withdraws money, in his books, the cash account is debited and bank account is…

Q: The speculative motive is the need to hold cash O a. To pay outstanding checks b.…

A: There are many objectives of maintaining cash with company but there are speculation objectives also…

Q: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been…

A: Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from…

Q: What do you mean by Duration theory? a. Bank customer must have maximum balance in his account b.…

A: The question is multiple choice question. Required Choose the Correct Answer.

Q: The collection of cash from customers to which they owe to the entity from its past rendering of…

A: Lets understand the basics. When entity sale the goods on the credit then the buyer known as the…

Q: Which of the following statement is true ? Answer choices : I. Increase in collection of cash…

A: Inventory- Inventory, like cash, bank deposits, and accounts receivable, is a current asset. The…

Q: ing source of finance allows the holders to withdraw more than their balance ? a. Commercial Paper…

A: Financial instruments are instruments that have some monetary value and are created due to the…

Q: Interest on overdraft account, entered in the bank account will result in a. Increase in Bank book…

A: Introduction: Overdraft: Withdrawal of cash more than available balance is called overdraft.

Q: B. 772,150 C. 779,650

A: Adjusted cash balance refers to the physical document which reflects the details about the desired…

Q: Business received a cheques from a customer on Thursday at 7 PM. The entry for this will result in…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: Which of the following statement is incorrect regarding Cash and Cash Equivalents? a. Postage…

A: Cash and Cash Equivalent - It refers to the various value of company's assets which are can be…

Q: It is the amount collected by the business in advance from the customers before the business…

A: A. Bank overdraft is facility by the bank to borrow the amount of money B. Outstanding expenses is a…

Q: If an owner makes a withdrawal of cash from the business bank account, then there has been a…

A: Withdrawals from business decreases asset and owner's equity.

Q: Deposits made by a company but not yet reflected in a bank statement are called: a.Credit…

A: Bank reconciliation statement: Bank reconciliation statement is to be prepared by the customer of…

Q: Which of the following statements are correct? I. A company's choice of accounting principles for…

A: Correct statement are as follows : I. A company's choice of accounting principles for financial…

Q: The companies dispose their accounts receivables due to a. Shortage of accounting staff b. Billing…

A: Option (c) is the correct answer

Q: Over/Under: Alpha's bookkeeper made a mistake by erroneously recording a loan from Beta Bank as a…

A: Every transaction has dual effect on the accounting equation. Total Assets = Total liabilities +…

Q: A bank loan approved for the business that has been paid into the bank account will have the…

A: Accounting Equation is the primary principle of accounting and also an important element in the…

Q: Assume a company has a $350 credit (not cash) sale. How would the transaction appear if thebusiness…

A: As per accrual concept of accounting, all incomes and expenses of the particular period should be…

Q: It is the amount collected by the business in advance from the customers before the business…

A: Under the accrual basis of accounting business transactions are recorded in books of accounts as and…

Q: TRUE OR FALSE. If the statement is INCORRECT, explain why the statement is INCORRECT. 1. Company…

A: Analysis of the given options:: 1. Company policies related to cash are guidelines by which the…

Q: All of the following about expense recognition principle are false, except: O a. Business requests a…

A: As per the accrual basis of accounting, we need to record the transaction when it occurred,…

Q: Interest on Loan account, debited by the bank will a. Decrease in Bank book balance. b. Increase in…

A: Interest on bank loan is charged by bank on loan owned by firm or individual.

Q: A company seeking a line of credit at a bank was turned down. Among other things, the bank stated…

A: Current Ratio: A current ratio is comparison between the current assets and current liabilities…

Q: Select TWO true statements about money. a. Base money is equal to cash plus commercial bank reserves…

A: Money: Money as a means of transaction is playing a significant role in today's world economy. Money…

Q: 3. What accounting principle is being violated in the following: a. The owner mixed up his personal…

A: a.) Economic or business entity concept is violated - as per business entity concept the transaction…

Q: Financial statement users assess a business liquidity and solvency to see whether a business is…

A: Solution Concept Liquidity The term liquidity means how quickly can the assets be…

Q: Which of the following is not an example of a cash outflow? Select one: a. Purchase of…

A: Cash outflow: It can be defined as the disbursement or payment in cash for meeting the expenditures…

Q: QUESTION 22 Which of the following is a disadvantage when a business accepts credit cards or debit…

A: Answer 22) The business needs to pay the processing fee, whenever they accept credit cards or debit…

Q: 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no…

A: Bank reconciliation statement is the Statement that provides the reason or explaination of…

Q: What is the normal balance for the following accounts? (Highlight the answer) (For example:…

A: Financial Statement Items: Financial Items means, for the Relevant Period, the aggregate amount of…

Q: The new bookkeeper forgot to record the payment of an accounts payable to a supplier. What impact…

A: Introduction: Balance sheet: All Assets and liabilities are shown in balance sheet. It tells the net…

Q: Which is NOT an example of a type of event that is not currently recognized in the financial…

A: Lets understand the basics. There are certain events which are not affecting financial statement…

Q: Which of the following demonstrates that a company is managing its receivables well? a.The company…

A: Managing receivables well can be said when there is enough liquidity to fund the daily operations…

Question

When banks allowed the business to withdraw money even when the account has no funds is known as _______. a. Accounts payable b. Unearned revenues c. Outstanding expenses d. Bank overdrafts

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

VIEW

Answer:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bank
When a business borrows money from a bank on a non-interest-bearing note, how are the bank discount and proceeds calculated?
Which of the following does not explain the differences between the bank statement balance and the customers cash balance? a. Deposit in transit b. Canceled checks c. An NSF check d. Errors e. Interest income
Upon review of your company’s bank statement, you discover that you recently deposited a check from a customerthat was rejected by your bank as NSF. Which of the following describes the actions to be taken when preparingyour company’s bank reconciliation?Balance per Bank Balance per Booka. Decrease No changeb. Increase Decreasec. No change Decreased. Decrease Increase
Identify transaction NOT belonging to Cash Equivalents O a. Bank Balance O b. Bank Overdraft O c. Short-term deposits in bank Od. Interest paid
Which of the following adjusts the company’s balance of cash in a bank reconciliation? a. Interest earned. b. Checks outstanding. c. Deposits outstanding. d. An error by the bank.
Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections already forwarded to the bank for deposit but too late to appear in the bank statement c.matured time deposits transferred by bank to the current account d.notes receivable collected by the bank in favor of the depositor e.charges for penalty
On a ban reconcialiation, customer's checks that are returned for lack of funds would be a. deducted from the balance per company records b. deducted from the balance per bank statement c. added to the balance per bank statement d. added to the balance per company records