Bank accounts to administer payroll are often on an imprest basis, as in they are usually at zero balance except for near pay period ends when funds are transferred from another account to service and direct deposits to employees. O True False

Bank accounts to administer payroll are often on an imprest basis, as in they are usually at zero balance except for near pay period ends when funds are transferred from another account to service and direct deposits to employees. O True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The adjusting entries for a bank reconciliation Select the correct response: May include a debit to…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Which of the following reconciling items may not result from bank side reccords of a bank account?…

A: Bank Reconciliation statement is a statement prepared to reconcile the cash book balance and bank…

Q: he amount of the outstanding checks is included on the bank reconciliation as a(n) Select one: A.…

A: >Outstanding checks are the checks that have been written and given to a party, but that party…

Q: Factoring" occurs when a business sells some of its accounts receivable to another insitution so it…

A: Accounts receivables are asset for a business because they can be converted into cash when they…

Q: On a ban reconcialiation, customer's checks that are returned for lack of funds would be a.…

A: PLEASE LIKE THE ANSWER CORRECT ANSWER IS "a" i.e., deducted from the balance per company records

Q: If a check correctly written and paid by the bank for $502 is incorrectly recorded in the company's…

A: Bank reconciliation statement is prepared by the management at a particular time period. It helps to…

Q: On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable $…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: rtificates of deposit maturing during the current operating cycle or within one year shall not be…

A: Solution Concept Cash and cash equivalent is presented in the balance sheet as a current assets Cash…

Q: Match each term associated with a bank reconciliation with its description. Terms Descriptions…

A: Bank Reconciliation Statement: Bank statement is prepared by bank. The company maintains its own…

Q: 3. Prepare journal entries for items (a)-() from the bank reconciliation. (If no entry ls required…

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

Q: The bank does not subtract the amount of your payment from the beginning balance but charges you…

A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period, as…

Q: cash balance

A: If the cash balance shown in the company’s cash records is more than the correct cash balance and…

Q: Which of the following statements is correct?

A: Answer: Checks are those document that are issued to give or receive any amount. a.Outstanding…

Q: Which of the following statements about a forged drawer's signature on a check is true? A.) A…

A: A forged drawer’s signature represents the instrument or checks to contain the forged signature of…

Q: use the cash balance per ledger to be greater tl ual by charging an amount to the depositor's acce…

A: Bank reconciliation is a statement made in order to ascertain the reasons for the difference between…

Q: Differences between the balance the bank reports on the bank statement and the balance the business…

A: Introduction:- Bank reconciliation is the process of comparing data the cash balance on a company’s…

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: The journal entries for a bank reconciliation . are taken from the "balance per bank" section only.…

A: A bank reconciliation is a statement that is prepared to match the bank balance as per the books of…

Q: f an accountant mistakenly uses the General journal to record a payment of cash for a bill that is…

Q: The following reconciling items are applicable to the bank reconciliation for Ellington Company.…

A: The objective of this question is to identify which of the given items in a bank reconciliation…

Q: Babasiga Lions Ltd. receives a cheque for $1000 records it in cash book and deposits it on the same…

A: Lets understand the basics. Bank reconciliation is as name suggest reconcile the balance as per bank…

Q: When an uncollectible account is recovered after it has been written off, which of the following…

A: When an uncollectible account is recovered after it has been written off, allowance for doubtful…

Q: If a check correctly written and paid by the bank for $744 is incorrectly recorded on the company's…

A: Bank reconciliation: It is a statement which is prepared to reconcile the balance as per cash book…

Q: Which of the following statements about a forged drawer's signature on a check is true? a.) A…

A: The answer for the multiple choice question and relevant working are presented hereunder : A check…

Q: Timing difference occurs when the bank records an amount before the company does. Group of answer…

A: Bank reconciliation statement: This statement shows the deposits, withdrawals and other charges and…

Q: If an adjustment for an NSF check is made in a company’s bank reconciliation, then the company must…

A: A bank reconciliation is the statement which indicates the difference or errors due to which certain…

Q: A check was deposited in error and cleared the bank account for company A (example). The check…

A: Please fallow the answer below: There is way to do it: 1) You must first figure out how much the…

Q: Deposits made which do not clear in time to appear on the current bank statement are called O check…

A: A bank statement, also known as an account statement, is a record that summarizes all of the…

Q: Another way to describe account reconciliation is bank reconciliation—the process of bringing the…

A: A bank reconciliation statement is prepared by almost every organization at a particular time. It is…

Q: Cheque was issued to supplier was not presented to the bank for payment will a. Decrease in Cash…

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

Q: When completing a bank reconciliation, which of the following is correct (please read carefully)?…

A: Under Bank reconciliation, amount recorded in books but not recorded by bank is reflected in bank…

Q: The bank statement is based on the bank’s records. does not show a daily running balance after each…

A: Bank statements includes balance in the bank it has all types of segregation like , bank charges,…

Q: A credit memorandum will show the collection of a note receivable by the bar True False

A: A credit memo is a commercial document sent by a supplier to a customer indicating that the amount…

Q: should be added to or subtracted from the book or bank balance, and whether it should or should not…

A: The question is based on the concept of Bank Reconciliation Statement. Bank reconciliation statement…

Q: CP 11 Bug-Off Exterminators provides pest control services and sells extermination products…

A: A bank reconciliation statement provides the details and shows us why and how much and which…

Q: Outstanding checks are checks the bank has paid and deducted from the customer's account. True or…

A: Outstanding checks are checks that have been issued for payment but have not yet been presented to…

Q: On a bank reconciliation, the amount of an unrecorded bank service charge should be: Multiple Choice…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Technically, a bank can require depositors to give prior notice before they withdraw funds from time…

A: Time deposits are deposits in the a bank which has fixed time of maturity. For this deposits,…

Q: Your customer has paid their bill, yet the Accounts Receivable balance has not changed. Which of the…

A: The amount that a business is entitled to receive from its clients for products or services offered…

Q: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

A: A payment system that uses computerized electronic impulses to affect a cash transaction is called…

Q: Which of the following accounts will not be used in case a security is discounted or collected to…

A: The bank will provide a facility for short-term loans by taking the accounts or notes receivables of…

Q: For proper segregation of duties in cash disbursements, the person who signs checks also a. reviews…

Q: Items on company bank statement: 1. Bank correction of an error from posting another customers…

A: Introduction: A bank statement is a document that is generally provided by the bank to the account…

Q: . I. Imprest should be used for small reimbursements and material expenses such as utilities or to…

A: Solution: 1. False, Imprest should be used for small reimbursements but not for material expenses…

Q: Outstanding checks are checks the company has written and recorded but the bank has not received.…

A: Outstanding checks are the checks that have been issued by the company but they have not yet been…

Q: The following items may appear on a bank statement: Bank correction of an error from recording a…

A: Bank Reconciliation Statement is an account prepared to match the balances as per cash book of the…

Q: If the company's accountant mistakenly recorded an $71 deposit as $111, the error would be shown on…

A: A bank reconciliation statement is a statement prepared by the entity to check the reasons behind…

Q: Why should a company prepare a bank reconciliation for each account every period? What types of…

A: Bank reconciliation is process to check and assure that entity's bank statement matches bank account…

Question

Bank accounts to administer payroll are often on an imprest basis, as in they are usually at zero balance except for near pay period ends when funds are transferred from another account to service
and direct deposits to employees.
True
O False

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

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

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 is a bank account from which a company transfers funds from a master account only as needed to cover checks presented for payment. A- Zero-balance account B- Concentration account C- Compensation account D- Correspondent account
A check returned by a bank because the issuer’s cash account balance could not cover the check is called a(n) A. canceled check. B. certified check. C. NSF check. D. outstanding check.
In a bank reconciliation, to adjust for a customer's NSF check requires: reducing the bank balance by the amount increasing the bank balance by the amount reducing the book balance by the amount increasing the book balance by the amount
Write the word "True" if the statement is correct and "False" if it is incorrect. 1. Debit memos are items added by the bank but have not been added by the book as of the cut-off date. 2. Credit memos are items that have been deducted by the bank but have not been deducted per book. 3. Debit memos are collections from receivables by the bank on behalf of the company and proceeds from loans directly added by the bank to the account of the depositor. 4. One of the internal control features in every company is a monthly bank reconciliation in which it is created to report that there is no discrepancy between the cash balance per book records and the cash balance per bank records. 5. After all, adjustments have been made. Reciprocal accounts should have the same balance. 6. Bank reconciliation statement is prepared to reconcile the difference between cash book and bank balance. 7. When a company has two bank account, only one bank reconciliation is prepared for all the accounts. 8. The…
In the reconciliation of a bank statement, "deposits in transit" should be:a. added to the unadjusted book balanceb. subtracted from the unadjusted bank balancec. added to the unadjusted bank balanced. subtracted from the unadjusted bank balance
The bank mistakenly recorded the collection of $385 on a customer account as $358 in the bank statement. The cheque was written in the correct amount and was correctly recorded in the company’s accounting system. The journal entry required to correct this error would be: Select one: a. debit Accounts Receivable, $385; credit Cash, $385 b. debit Cash, $27; credit Accounts Receivable, $27 c. debit Cash, $385; credit Accounts Receivable, $385 d. debit Accounts Receivable, $27; credit Cash, $27 e. no journal entry is required
Uncredited cheques are Cheques issued by a business but not yet cashed out by creditors. Cheques that are already deposited into a business's bank account but not yet recorded in the bank statement O Bank charges on the services provided by the bank Instructions given by a business to make regular payments on its behalf to its creditors
Which of the following items does NOT cause a difference in the bank balance and the book balance on a bank reconciliation? a. Nonsufficient funds checks b. Deposits in transit c. Canceled checks d. Outstanding checks
Customer deposits (prepayments) are recorded - Select one: a. as debits to accounts receivable for the customer b. as negative sales invoices C. as credits to accounts receivable for the customer O d. when the customer makes a partial payment on account
Which of the following adjusts the bank’s balance of cash in a bank reconciliation? a. NSF checks. b. Service fees. c. An error by the company. d. Checks outstanding.
During a bank reconciliation process, Oa. outstanding checks and deposits in transit are subtracted from the bank statement balance Ob. outstanding checks are added and deposits in transit are subtracted from the bank statement balance Oc. outstanding checks and deposits in transit are added to the bank statement balance Od. outstanding checks are subtracted and deposits in transit are added to the bank statement balance
Which of the following statements about an electronic funds transfer (EFT) is false? Multiple Choice EFT are checks written by the depositor, subtracted on the depositor's books, and sent to the payee but not yet turned in for payment at the bank statement date. Companies are increasingly using EFT because of its convenience and low cost. Payroll, rent, utilities, insurance, and interest payments are usually done by EFT. EFT is the electronic transfer of cash from one party to another. Cash receipts by EFT are listed with deposits and other additions. ▬▬ Q Search #t B 5