Chapter 5.2, Problem 2AYU

Why is it a good practice to post daily to the accounts receivable or accounts payable ledgers?

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

Which of the following statements is correct? a.Outstanding checks are checks not yet issued by the depositor to the payee and not yet reflected on the bank statement. b.Certified checks should be deducted from the total outstanding checks c.If the check contains a conflict between amount in words and amount in figures, it is usually accept by the bank provided, the depositor promises to correct it later within the day. d.In DAIF, the depositor has, on its face, sufficient funds in his account, although it is not available yet at the time the check was drawn, whereas in DAUD, the depositor lacks sufficient funds in his account to pay the check.

If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off?

Which of the following best describes a voucher? A supporting document prepared for each cash receipt or disbursement A promise to pay an amount owed within a discount period A written authorization prepared for each check written A written record sent to a payee along with the signed check

If a check correctly written and paid by the bank for $512 is incorrectly recorded in the company's books for $443, how should this error be treated on the bank reconciliation?

The process of determining any differences between a bank statement balance and a checkbook balance is known as _______________.         Calculating bank service charge         Calculating outstanding deposits         Reconciling the bank statement         Issuing a stop payment order

If an accountant mistakenly uses the General journal to record a payment of cash for a bill that is due, instead of the Cash Payments journal, will this mistake cause the corresponding accounts in the General ledger to be off? Explain.

In many cases, banks do not permit depositors to spend the proceeds of a deposit until several days have elapsed. What risks do banks face in the check-clearing process? Does this justify holds on checks?