When reconciling the Cash account, direct deposits such as wire transfers are: ...
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Accounting
When reconciling the Cash account, direct deposits such as wire transfers are:
A.
deducted from the Cash balance
B.
added to the Cash balance
C.
deducted from the bank balance
D.
added to the bank balance
In December, your company sublets space and receives payment for four months in advance December, January, February and March crediting Rent Received in Advance for the full payment. On December 31, you show the revenue earned for the current period by:
A.
reducing Rent Received in Advance
B.
increasing Rent Received in Advance
C.
leaving Rent Received in Advance unchanged
D.
reducing Rent Expense
Just before the books are closed you discovered that $1,400 of interest expense was accrued when only $1,200 should have been accrued. To correct this error, you would
A.
wait until the interest is paid next period and then record the $200 of prepaid interest
B.
do nothing because accruals do not involve cash
C.
record an adjusting entry before the books are closed that reduces interest expense and interest payable by $200
D.
next period do nothing this period but accrue $200 less interest expense after the books for this period are closed
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