A. At July 31, Ramirez Company has the following bank information: cash balance per bank $8,039, outstanding checks $691, deposits in transit $1,163, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31. B. Differences between when a company records a transaction and when the bank records the same transaction are called timing differences. True or False? C. When performing a bank reconciliation, checks outstanding are added back to the bank balance. True or False?
A. At July 31, Ramirez Company has the following bank information: cash balance per bank $8,039, outstanding checks $691, deposits in transit $1,163, and a bank service charge $26. Determine the adjusted cash balance per bank at July 31. B. Differences between when a company records a transaction and when the bank records the same transaction are called timing differences. True or False? C. When performing a bank reconciliation, checks outstanding are added back to the bank balance. True or False?
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash And Marketable Securities
Section: Chapter Questions
Problem 31MCQ
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![A. At July 31, Ramirez Company has the following bank information:
cash balance per bank $8,039, outstanding checks $691, deposits in
transit $1,163, and a bank service charge $26.
Determine the adjusted cash balance per bank at July 31.
B. Differences between when a company records a transaction and
when the bank records the same transaction are called timing
differences. True or False?
C. When performing a bank reconciliation, checks outstanding are
added back to the bank balance.
True or False?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e3b35e9-5701-419e-a57f-0020e64dc699%2F650937af-bf2c-4490-9dff-2e2224c5638b%2Fpjhq256_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A. At July 31, Ramirez Company has the following bank information:
cash balance per bank $8,039, outstanding checks $691, deposits in
transit $1,163, and a bank service charge $26.
Determine the adjusted cash balance per bank at July 31.
B. Differences between when a company records a transaction and
when the bank records the same transaction are called timing
differences. True or False?
C. When performing a bank reconciliation, checks outstanding are
added back to the bank balance.
True or False?
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