Banking Exam Questions Chapter 4

Practical Business Math Procedures, 13e (Slater)

Chapter 4 Banking

1) ATMs have completely replaced the need for tellers.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (1) Explain trends in the banking industry.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

2) The payee is the person to whom the check is payable.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

3) All checks are required to have a preprinted check number.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

4) A check stub is completed after the check is written so records will be up to date.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

5) Mobile banking is increasing today.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (4) Explain the trends in mobile banking.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

6) Crediting an account by the bank means a decrease to that account.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

7) A blank endorsement is the safest type of endorsement.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

8) An endorsement may be in writing or by the use of a company stamp.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

9) A full endorsement is as safe as the restrictive endorsement.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

10) The use of smartphones in banking is decreasing.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (4) Explain the trends in mobile banking.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

11) Timing plays no role in differences between reconciling checkbook balances and bank balances.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

12) Outstanding checks have not reached the bank for processing by the time the bank statement has been prepared.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

13) Deposits in transit are the result of outstanding checks.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

14) Overdraft protection could be a positive factor if a deposit in transit occurs.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

15) More people use online banking today than 10 years ago.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (1) Explain trends in the banking industry.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

16) A reconciled balance is found on the front side of a bank statement.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

17) Online banking is always safe.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

18) NSF results in a bank crediting one's account.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

19) Electronic funds transfer does not use paper checks.

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

20) The effect of using an ATM card is the same as using a debit card; both result in money deducted from a checking account.

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

21) In the reconciliation process the unrecorded bank service charge is:

A) Added to checkbook balance

B) Deducted from checkbook balance

C) Added to bank statement balance

D) Deducted from bank statement balance

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

22) The process of analyzing the differences between the bank statement balance and the checkbook balance is:

A) Checks outstanding

B) Bank audit

C) Deposits in transit

D) Bank reconciliation

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

23) Outstanding checks:

A) Have been paid by the bank

B) Are checks returned to the payer

C) Are bank checks

D) Have not been received by the bank for processing

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

24) An unrecorded credit memo for collection of a note should be:

A) Ignored

B) Subtracted from checkbook balance

C) Added to checkbook balance

D) Added to bank balance

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

25) Online banking

A) Is never accepted by all banks

B) Still holds checks for 10 days

C) Is usually safe

D) Is very unsafe

E) None of these

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

26) Electronic funds transfer:

A) Uses paper checks

B) Uses some paper checks

C) Does not use paper checks

D) Is a manual transfer system

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (4) Explain the trends in mobile banking.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

27) Which of the following results in crediting the checkbook balance?

A) NSF

B) Service charge

C) Interest earned

D) Overdraft protection charge

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

28) Mia Wong's checking account had a balance of $3,100.55 on July 1. After looking at her bank statement, she noticed an NSF for $60.50, a service charge of $12.55, and a note collected for $600. There was one deposit in transit for $400 and no checks outstanding. What is the reconciled checkbook balance?

A) $3,527

B) $4,027.50

C) $3,627.50

D) $3,267.50

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

29) Citizen Bank sent a bank statement to Bane Co. showing an ending balance of $1,480. On the bank statement there was a service charge of $20. The bookkeeper of Bane Co. noticed in the reconciliation process a deposit in transit of $200 along with checks outstanding of $300. Complete the reconciliation for Bane assuming a beginning balance of $1,400.

A) $1,830.00

B) $1,138.00

C) $1,380.00

D) $1,360.00

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

30) The bank statement for Mat Co. revealed a balance of $900, and the checkbook balance showed $1,420. Checks outstanding totaled $35. A check printing charge for $5 was on the bank statement. There was a $50 NSF shown on the bank statement. There was a $500 deposit in transit. What is the reconciled balance?

A) $1,045

B) $1,095

C) $1,040

D) $1,365

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

31) From the following the reconciled balance is:

A) $74,959.10

B) $47,959.10

C) $74,459.10

D) $74,559.10

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

32) Jim Lee received his bank statement from Bayne Bank indicating a balance of $7,980. Lee's checkbook showed a balance of $6,800. Jim noticed that checks outstanding were $1,330. The bank statement also revealed an NSF check for $120 and a service charge of $30. The reconciled balance is:

A) $6,560

B) $6,530

C) $6,950

D) $6,650

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

33) The checkbook balance of Lester Co. was $922.55. The bank statement revealed a balance of $3,881.14. The bank statement showed interest earned of $77 and a service charge of $38.22, along with a deposit in transit of $9,555.88. Outstanding checks totaled $6,142.88. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $6,815.00. Lester Co. forgot to deduct a check for $482.19 during the month. The reconciled balance is:

A) $7,924.14

B) $7,429.18

C) $7,294.14

D) $7,429.14

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

34) The beginning checkbook balance of Shelley Co. was $5,559.10. The bank statement showed a bank balance of $7,888.44. The bookkeeper of Shelley Co. noticed a $111.10 deposit in transit along with check numbers 90 and 97 for $499.88 and $1,256.45, respectively, as outstanding. The bank statement credited Shelley's account for $750.99 for a note collected. The bank statement revealed a check printing charge of $66.88. The reconciled balance is:

A) $6,423.12

B) $6,243.21

C) $6,423.21

D) $4,623.21

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

35) The bank statement of Ali Co. indicated a current balance of $32,900.10. The current checkbook balance indicated a balance of $34,509.11. In the reconciliation process a deposit in transit for $6,821.11 was discovered. Check number 600 for $3,988.33 was outstanding. The statement also revealed an NSF of $110.11 along with interest earned by Ali of $1,333.88. The reconciled balance is:

A) $35,237.88

B) $34,237.88

C) $35,723.88

D) $35,732.88

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

36) Jill Gracie's current checkbook balance is $8,900.15. She opened up the bank statement and saw the bank's balance at $7,000.10. After reviewing her records with the bank statement, she discovered a deposit on July 1 not recorded on the statement for $9,821.55. A check written for $7,986.05 had not been returned by the bank. This month the company earned interest of $33.10. The bank charged the company $48.10 for printing new checks. Jill also discovered that a check written for $49.55 was not recorded in the check stubs. The reconciled balance is:

A) $8,835.60

B) $8,358.60

C) $8,735.60

D) $8,835.06

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

37) The bank statement of July 31, for Savon Co. showed a balance of $6,008.10, and the checkbook showed a balance of $1,900.40. The bookkeeper of Savon Co. noticed from the bank statement that the bank had collected a note for $666.66. There was a deposit in transit made on July 1, for $1,100.10 along with the outstanding checks of $4,580.54. Check charges were $39.40. The reconciled balance is:

A) $5,227.66

B) $2,572.66

C) $2,527.66

D) $5,272.66

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

38) On December 31, the checkbook balance of Ray Co. was $5,420.95. The bank statement balance showed $5,102.88. Checks outstanding totaled $813.53. The statement did not show a deposit in transit of $1,102.95. Check charges were $15.88. The company earned interest income of $29.32 that was shown on the report. The bookkeeper forgot to record a check for $42.09. The reconciled balance is:

A) $5,392.30

B) $5,923.03

C) $5,932.03

D) $5,392.03

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

39) Jane Co.'s checkbook currently has a balance of $295.10. The bank statement shows a balance of $205.10. The statement revealed interest income of $10.03 along with check charges of $2.95. Jane recorded a $200 check as $150. Deposits in transit were $402.80. Check numbers 85, 88, and 92 for $90.80, $108.10, and $156.82 were not returned with the statement. The reconciled balance is:

A) $302.18

B) $242.18

C) $242.51

D) $252.18

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

40) The checkbook balance of Roger Co. is $982.50. The bank statement reveals a balance of $1,051.82. The bank statement showed interest earned of $3.82 and a service charge of $15, along with a deposit in transit of $210. Outstanding checks totaled $270.50. The bookkeeper in further analyzing the bank statement noticed a collection of a note by the bank for $200. Roger Co. forgot to deduct a check for $180 during the month. The reconciled balance is:

A) $831.32

B) $991.32

C) $831.23

D) $991.23

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

41) Checks written that do not appear on your bank statement are:

A) Paid from the previous month

B) Not written correctly

C) Appear as a deposit

D) Credited to savings

E) None of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

42) Which of the following are debited from a checking account?

A) ATM withdrawal

B) Returned check fee

C) Monthly service charge

D) Monthly electronic payment of utilities

E) All are debits

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

43) Sandi's checking account had a balance of $4627.36; her bank statement's balance was $10,275.46. A service fee of $37.00 also appeared on her statement. What was the total of all outstanding checks?

A) $10,238.48

B) $5,685.10

C) $5,611.11

D) $6,115.10

E) None of the above

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

44) When you are reconciling a bank statement, it's recommended that you do the following:

A) List your balance

B) List your bank statements balance

C) Record checks outstanding

D) Record deposits outstanding

E) All of these

Difficulty: 1 Easy

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

45) Concord Pizza's checkbook balance is $1,799.59. The bank statement has a balance of $2,314.22. Interest earned on the statement was $35.50. With checks outstanding of $504.13 and a monthly service charge of $25.00, the reconciled balance is:

A) $793

B) $1,027.59

C) $2,046.35

D) $2,071.35

E) None of these

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

Match the following terms with their definitions.

A) Document that records deposit

B) Added to bank balance

C) Used in mobile banking

D) Automatic teller machines

E) One to receive amount of check

F) Bank adds to your account

G) Record keeping device

H) Bounced check

I) Check must be deposited to payee's account

J) A report sent by bank

K) Total credit card sales minus credit accounts

L) Identifies to whom check is to be transferred

M) Bank is charging your account

N) No restrictions

O) One who writes a check

P) Eliminates the use of paper checks

Q) Signing back of checks

R) Comparing bank balance to checkbook balance

S) Not processed by bank yet

46) Net deposit

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

47) Deposit tickets

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

48) Nonsufficient funds

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

49) Bank reconciliation

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

50) Restrictive endorsement

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

51) Outstanding checks

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

52) Full endorsements

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

53) Endorsements

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

54) Credit memo

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

55) Smartphone

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

56) Bank statement

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

57) Drawer

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

58) Payee

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

59) Blank endorsement

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

60) Deposits in transit

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

61) Check register

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

62) Debit memo

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

63) ATM

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

64) Electronic funds transfer

Difficulty: 1 Easy

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Remember

Type: Static

Accessibility: Keyboard Navigation

Answers: 46) K 47) A 48) H 49) R 50) I 51) S 52) L 53) Q 54) F 55) C 56) J 57) O 58) E 59) N 60) B 61) G 62) M 63) D 64) P

65) Calculate the balance carried forward:

Add the deposits to the previous balance and then subtract the check amount(s).

Difficulty: 2 Medium

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

66) Calculate the balance carried forward:

Add the deposits to the previous balance and then subtract the check amount(s).

Difficulty: 2 Medium

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

67) Calculate the balance carried forward:

Add the deposits to the previous balance and then subtract the check amount(s).

Difficulty: 2 Medium

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

68) Calculate the statement balance:

Subtract the checks processed from the original balance, add the deposits, and subtract the service charge.

Difficulty: 2 Medium

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

69) Calculate the statement balance:

$910.11 - $615.30 + $291.88 - $12.10 = $574.59.

Difficulty: 2 Medium

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

70) Calculate the statement balance:

$1,871.44 - $891.85 + $160.50 - $14.11 = $1,125.98.

Difficulty: 2 Medium

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

71) Compute the reconciled balance:

Subtract the NSF and service charge and add the interest to the checkbook balance. Add the DIT and subtract the outstanding checks from the bank statement balance.

Difficulty: 2 Medium

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

72) Moore Company has a checkbook balance of $1,999.10. The bank statement indicated a balance of $1,981.54. Moore noticed on his bank statement a bounced check for $52.88 along with a service charge of $12.10. Interest earned on the checking account amounted to $33.81. Moore noticed that a deposit of $350 had not been recorded on the bank statement. Checks written for $363.61 had not yet been processed by the bank. What is the adjusted reconciled balance?

$1,981.54 + $350 - $363.61 = $1,967.93; $1,999.10 - $12.10 + $33.81 - $52.88 = $1,967.93

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

73) Roger Ran's checkbook balance on April 30, was $1,498, and his bank statement balance for same period was $1,210.88. He discovered from his canceled checks that a check for $30 had been recorded in the check register for $20. The bank deducted a service charge of $12.55 from Roger's account. A deposit mailed on April 29, for $310.99 did not appear on the statement. Roger noticed that checks number 110 and number 118 for $16.88 and $29.54 were not returned with the canceled checks. What is the adjusted reconciled balance?

$1,210.88 + $310.99 - $16.88 - $29.54 = $1,475.45; $1,498 - $10 - $12.55 = $1,475.45

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

74) Valdez Company opened a special checking account. The charge for each check written was $.55 or a $6 a month minimum service charge (whichever is greater). At the beginning of the month, the company checkbook balance was $695.18. Valdez Company wrote 14 checks totaling $312.88. Deposits of $188.10 and $195.10 were made during the month. What is Valdez's checkbook balance to start the next month (include cost of check writing)?

$695.18 - (14 × $.55) - $312.88 + $188.10 + $195.10 = $757.80

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

75) The checkbook of Vance Company had a balance of $2,210.55. The bank statement showed a balance of $4,918.18. The bank collected a $2,000 note minus a $5 service charge. There was a deposit in transit of $610.88. Several checks outstanding totaled $1,196.17. Vance collected $42.33 in interest on the checking account. Vance recorded a $300 check for $400. The bank service charge is $14.99. What is the adjusted reconciled balance?

The check record error equals $100. $2,210.55 + $2,000 - $5 + $42.33 + $100 - $14.99 = $4,332.89; $4,918.18 + $610.88 - $1,196.17 = $4,332.89.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

76) From the following calculate the final balance that was to be carried forward in your check stubs as of the end of October:

Oct. 1 Beg. Balance $1,200.50

Oct. 8 Deposit $300.00

Oct. 12 Check written to Bloom Co. $382.65

Oct. 16 Deposit $400.00

Oct. 28 Check written to Flex Co. $185.99

Oct. 31 Check written to Ryan Co. $88.92

Add the deposits and subtract the check amounts from the beginning balance to get $1,242.94.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

77) On November 1, 20xx, Broom Company received a bank statement that showed a $2,950 balance. Broom showed a $4,010 checking account balance. The bank did not return check number 124 for $1,080 and check number 138 for $720. A $3,200 deposit made on October 30 was in transit. The bank charged Broom $12 for check printing and $18 for an NSF check. Broom forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Broom. Prepare bank reconciliation.

BROOM COMPANY

Bank Reconciliation as of November 1, 20xx

CHECKBOOK BALANCE BANK BALANCE

Broom Balance of Cash $4,010 Bank Statement Balance $2,950

ADD: ADD:

Collection of Note…. 400 Deposits in transit… 3,200

$4,410 $6,150

Deduct: Deduct:

Check Printing… $12 Outstanding checks

ATM………… 30 No. 124 $1,080

NSF………… 18 No. 138 720

60 $1,800

Reconciled Balance: $4,350 Reconciled Balance: $4,350

$4,010 + $400 - $12 - $30 - $18 = $4,350; $2,950 + $3,200 - $1,080 - $720 = $4,350.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

78) On December 31, 20xx, Brown Company's checkbook showed an $8,195.32 balance. Brown's bank statement showed a balance of $8,400.50. Check number 311 for $395.10 and check number 418 for $115.46 were outstanding. A $310.30 deposit was in transit. The bank charged a $10 service charge. The statement showed a $14.92 earned interest income. Complete Brown's bank reconciliation.

BROWN COMPANY

Bank Reconciliation as of December 31, 20xx

CHECKBOOK BALANCE BANK BALANCE

Brown Balance of Cash $8,195.32 Bank Statement Balance $8,400.50

ADD: ADD:

Interest Income 14.92 Deposits in transit… 310.30

$8,210.24 $8,710.80

Deduct: Deduct:

Service Charge $10 Outstanding checks

No. 311 $395.10

No. 418 115.46

510.56

Reconciled Balance: $8,200.24 Reconciled Balance: $8,200.24

$8,195.32 + $14.92 - $10 = $8,200.24; $8,400.5 + $310.30 - $395.10 - $115.46 = $8,200.24

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

79) On May 31, 20xx, Kane Company's bank statement showed a $9,900.50 bank balance. The bank statement also showed that it collected a $1,200 note for Kane Company. A $1,315.80 deposit made on May 31 was in transit. Check number 314 for $48.50 and check number 485 for $465.12 were outstanding. Kane's bank charges $.15 per processed check. This month Kane wrote 68 checks. Kane has a $9,512.88 checkbook balance. Prepare a reconciled balance.

KANE COMPANY

Bank Reconciliation as of May 31, 20xx

CHECKBOOK BALANCE BANK BALANCE

Kane Balance of Cash $9,512.88 Bank Statement Balance $9,900.50

ADD: ADD:

Collection of Note 1,200.00 Deposits in transit… 1,315.80

$10,712.88 $11,216.30

Deduct: Deduct:

Check Charge Outstanding checks

68 × .15 10.20 No. 314 $48.50

No. 485 465.12

513.62

Reconciled Balance: $10,702.68 Reconciled Balance: $10,702.68

9,512.88 + 1,200 - 10.20 = 10,702.68; 9,900.50 + 1,315.80 - 48.50 - 465.12 = 10,702.68.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

80) The Swell Co. had a beginning checkbook balance of $1,792.15. Record the following in the check stubs provided: 200x

A. Oct. 17 check number 162 payable to Ray Co. for $282.88 for supplies

B. $700.50 deposit Oct. 19 (record deposit on second check stub)

C. Oct. 25 check number 163 payable to Flynn Co. for $382.41 for insurance

Subtract the check amounts and add the amount deposited to the balance brought forward to get $1,827.36.

Difficulty: 3 Hard

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

81) The Losponato Co. had a beginning checkbook balance of $1,982.15. Record the following in the check stubs provided: 200x

A. Oct. 19 check number 155 payable to Bill Co. for $185.66 for supplies

B. $1,200.85 deposit Oct. 21 (record deposit on second check stub)

C. Oct. 24 check number 156 payable to Fudge Co. for $421.88 for entertainment expenses

$1,982.15 - $185.66 + $1,200.85 - $421.88 = $2,575.46.

Difficulty: 3 Hard

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (2) Correctly prepare deposit slips and write checks.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

82) From the following, prepare a bank reconciliation for the J. Company:

Service charge $10

Checks outstanding $730

NSF $100

Deposits in transit $1,040

Checkbook balance $2,000

Bank balance $1,580

$2,000 - $100 - $10 = $1,890; $1,580 + $1,040 - $730 = $1,890.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

83) From the following, prepare a bank reconciliation for Blue Co.:

Service charge $20

Checks outstanding $1,460

NSF $200

Deposits in transit $2,080

Checkbook balance $4,000

Bank balance $3,160

$4,000 - $200 - $20 = $3,780; $3,160 + $2,080 - $1,460 = $3,780.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

84) On Dec. 31 the checkbook balance of Rose Co. was $755.09. The bank statement balance was $602.05. Checks outstanding were $249.54. The statement revealed a deposit in transit of $401.95 as well as a bank service charge of $13.05. The company earned interest income of $12.42. Complete a bank reconciliation for Rose Co.

$755.09 + $12.42 - $13.05 = $754.46; $602.05 + $401.95 - $249.54 = $754.46.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

85) On Dec. 31 the checkbook balance of Aster Co. was $1,241.05. The bank statement balance was $1,510. Checks outstanding were $3,052.03. The statement revealed a deposit in transit of $2,800.10 as well as a bank service charge of $12.03. The company earned interest income of $29.05. Complete a bank reconciliation for Aster Co.

$1,241.05 + $29.05 - $12.03 = $1,258.07; $1,510 + $2,800.10 - $3,052.03 = $1,258.07.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

86) John Murray has a beginning checkbook balance of $110. The beginning bank balance is $135, and deposits in transit amounted to $50. Checks outstanding were $80. John also noticed a bank service charge of $5. What should the reconciled balance be?

$110 - $5 = $105; $135 + $50 - $80 = $105.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

87) Andy Finn received a bank statement from Jon Bank indicating a balance of $3,000. Based on Andy's check stubs, the ending checkbook balance was $3,600. Checks outstanding were number 110 for $150, number 115 for $90, and number 118 for $75. Andy noticed a deposit in transit for $900 as well as a bank service charge for $15. Complete the reconciliation for Andy.

$3,600 - $15 = $3,585; $3,000 + $900 - $150 - $90 - $75 = $3,585.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

88) Abe Frill received a bank statement from the Cloudy Bank indicating a balance of $12,000. Abe's checkbook showed a balance of $11,200. Deposits in transit were $2,000, and checks outstanding totaled $2,900. The bank service charge was $100. Complete the reconciliation.

$1,200 - $100 = $11,100; $12,000 + $2,000 - $2,900 = $11,100.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

89) John Small was looking over his bank statement and jotted down the following information:

Calculate the ending checkbook balance for John.

Add the amount of the note collected and subtract the NSF and printing charges from the beginning balance. The outstanding checks are not subtracted. $202.02 + $100.00 - $15.00 - $29.82 = $257.20

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

90) On the bank statement, Bill notices a beginning bank balance of $500.25. Bill knew he had written his nephew a check for $25 that had not been returned to him by the bank. What effect does this $25 have on the bank reconciliation process?

Difficulty: 2 Medium

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Understand

Type: Static

Accessibility: Keyboard Navigation

91) The beginning balance of the check register was $492.88. During the month, deposits were made for $210 and $499.88. Checks were written for $18.25, $19.82, and $309.82. What is the ending balance of the check register?

$492.88 + $210 + $499.88 - $18.25 - $19.82 - $309.82 = $854.87.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

92) John Mills has asked you to compute his checkbook balance from the following:

The outstanding check amount is not subtracted from the beginning checkbook balance; subtract only the charges and add the note collected. $4,255.88 + $1,010.25 - $825.00 - $42.80 - $55.00 = $4,343.33

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

93) Bill Morse had a balance of $422.88 in his check register. The bank notified him that Alice Wrong had insufficient funds to cover her check that Bill deposited. The bank indicated that Bill's bank balance was being reduced. Bill felt that this was unfair since he never "bounces" his own checks. Is he justified? Please explain.

It is bank policy to deduct all NSF charges from the depositor's account.

Difficulty: 3 Hard

Topic: LU 04-01 The Checking Account

Learning Objective: 04-01 (1) Define and state the purpose of signature cards, checks, deposit slips, check stubs, check registers, and endorsements.

Bloom's: Analyze

Type: Static

Accessibility: Keyboard Navigation

94) As the bookkeeper of Moore Co., you are asked to complete a bank reconciliation from the following:

Checkbook balance: $48,621.80

Bank balance: 57,190.52

Deposits in transit: 3,369.08

Note collected: 4,000.00

Outstanding checks: 7,957.80

Bank service charge: 20.00

$48,621.80 + $4,000 - $20 = $52,601.80; $57,190.52 + $3,369.08 - $7,957.80 = $52,601.80.

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

95) Using the info provided, determine the statement balance.

Balance last statement: $3,371.12

Checks processed: 1,214.44

Deposits received: 60.00

Service charge: 10.20

Statement balance: ?

3,371.12 + 60 - 1,214.44 - 10.20

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

96) Norm's concrete company had the following activity on its bank statement last month:

Beginning balance: $12,133.14

Deposits of: $600.00; $613.13; $1,176.25

Total checks written: $10,233.76

Service fee: $40.00

Ending balance: ?

12,133.14 + 600 + 613.13 + 1,176.25 - 10,233.76 - 40 = 4,248.76

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

97) Debbie's checkbook balance was $2,715.50. She wrote checks totaling $5,298.13 during the month of May. Deposits made during the month were $250.16 on May 1. On May 15, her payroll check was electronically processed for $2980.66; on May 22, a check from the IRS was electronically processed for $2,550. On May 27, she recorded $534.10 for payments debited to her account for auto insurance and utilities. What is her checkbook balance?

$2,715.50 + $$250.16 + $2980.66 + $2550 - $5298.13 - $534.10

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

98) Jodie has a checkbook balance of $733.17; she wrote a check payable to Finney's Gym for $24.99 on June 1 and another check for $382.77 payable to Ford Credit on June 10. On June 28, her payroll check from Maryville College for $2,210.54 was deposited electronically. What was her balance on June 28?

What is Jodie's balance on June 28?

$733.17 - $24.99 - $382.77 + $2,210.54 = $2,535.95

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation

99) David had the following activity with his checking account during the month of July: Starting checkbook balance of $701.13

• July 15 electronic payroll deposit of $1,807.44

• Online payment of $109.17 to Ameren Utilities

• Online payment of $104.00 to Gas Company

• Checks written on July 15 totaling $984.15

• On July 27, he received an electronic payroll deposit of $1,807.43

What was David's checkbook balance as of July 31?

($701.13 + $1,807.44+ $1,807.43) - ($109.17 + $104 + $984.15) = $3,118.68

Difficulty: 3 Hard

Topic: LU 04-02 Bank Statement and Reconciliation Process; Latest Trends in Mobile Banking

Learning Objective: 04-02 (2) Define and state the purpose of the bank statement.; 04-02 (3) Complete a check register and a bank reconciliation.

Bloom's: Apply

Type: Static

Accessibility: Keyboard Navigation