25 the journal entry to reverse the entry of a customer 39 s nonsufficient funds che 4310157

25) The journal entry to reverse the entry of a customer's nonsufficient funds check would include a:

A) debit to Cash.

B) credit to Cash.

C) debit to Accounts Payable.

D) credit to Accounts Receivable.

26) From the bank reconciliation no entry was recorded for a debit memo for a new check fee expense. This would cause:

A) liabilities to be understated.

B) liabilities to be overstated.

C) expenses to be understated.

D) expenses to be overstated.

27) From the bank reconciliation no entry was recorded for deposits in transit. This would cause:

A) assets to be overstated.

B) assets to be understated.

C) no impact since deposits in transit are already included in the balance per books.

D) no impact since deposits are not recorded on the books.

28) The bank charged another company's check against our account, this would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

29) A bank service charge would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

30) An error, on the company's books, in recording a $82 deposit as $28 would be included on the bank reconciliation as a(n):

A) addition to the balance per bank.

B) subtraction from the balance per bank.

C) addition to the balance per books.

D) subtraction from the balance per books.

31) The bank added another company's deposit to our account. This would be included on the bank reconciliation as a(n):

A) addition to the balance per books.

B) subtraction from the balance per books.

C) addition to the balance per bank.

D) subtraction from the balance per bank.

32) On a bank reconciliation, outstanding checks are deducted from the balance per books.

33) Canceled checks are negotiable at the bank for the face value.

34) Deposits that have been added to the bank balance but not the checkbook balance are called deposits in transit.