Multiple Choice Answers

A check drawn by a depositor for $195 in payment of a liability was recorded as $915. This item would be included on the bank reconciliation as a(n):

a. addition to the balance per the depositor’s records
b. addition to the balance per the bank statement
c. deduction from the balance per the bank statement
d. deduction from the balance per the depositor’s records

Accumulated depreciation is what type of an account?

a. Revenue account
b. Expense account
c. Contra asset account
d. Liability account

Preventive controls are the same as detective controls.

True
False

Receipts from cash sales of $7,500 were recorded incorrectly as $5,700. This item would be included on the bank reconciliation as a(n):

a. deduction from the balance per depositor’s records
b. addition to the balance per bank statement
c. deduction from the balance per bank statement
d. addition to the balance per depositor’s records

A payment of dividends decreases which section on the statement of cash flows?

a. Operating activities
b. Investing activities
c. Financing activities
d. None of the above