2

Cards (15)

  • TRUE
    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.
    FALSE