A deposit made by an entity will increase the bank's deposit liability.
At the time a check was made by an entity, there is already a corresponding decrease in the bank's deposit liability.
FALSE
Utilities incurred by the entity that was directly paid by the bank is considered as a debit memo.
TRUE
Granting of a loan by a bank to a depositor entity will increase the bank's deposit liability to the entity.
TRUE
The bank's direct deduction of its maturing loan receivable from the depositor's bank account is considered as a credit memo.
FALSE
Bank service charge is considered as a bank-reconciling item.
FALSE
A depositor entity's note receivable that was collected by the bank is considered as a credit memo.
TRUE
TRUE
Defective customer checks are considered as book-reconciling item.
Outstanding checks are those already in the possession of the payees but are yet to be encashed in the drawee bank.
TRUE
When determining the adjusted cash in bank balance, certified checks are deducted from the bank statement balance.
FALSE
Deposits in transit are added to the bank statement balance.
TRUE
Bank service charges are added to the book balance in determining the adjusted cash in bank balance.
FALSE
In determining the adjusted cash in bank balance, customer's direct payments to the entity's bank account are added to the bank statement balance.
FALSE
The correction of overstatement in the entity's recording of a check will have a net increasing effect to the book balance in determining the adjusted cash in bank.
TRUE
The correction of understatement in the entity's recording of its deposit will have a net decreasing effect to the book balance in determining the adjusted cash in bank.