Question

question 7 (5 points)
checks that have been processed by the bank and are no longer negotiable are
outstanding checks.
canceled checks.
blank checks.
checks in process.

question 8 (5 points)
a bank service charge would be included on the bank reconciliation as a/an
addition to the balance per books.
subtraction from the balance per bank.
subtraction from the balance per books.
addition to the balance per bank.

Explanation:

Analyze Question 7

Using the Outstanding Checks knowledge point

• Outstanding checks are checks written by the depositor but not yet cleared by the bank.
• Canceled checks are checks that have been cleared and processed by the bank, meaning they are no longer negotiable.
• Blank checks are unused checks with no written amount or payee.
• Checks in process are checks currently being cleared.

Therefore, checks processed by the bank and no longer negotiable are canceled checks.

Analyze Question 8

Using the Bank Service Charges and Bank Reconciliation knowledge points

• Bank service charges are fees charged by the bank for maintaining the account.
• The bank has already deducted this amount, so the bank balance is correct regarding this fee.
• The company's books do not reflect this fee until the bank statement is reconciled.
• Therefore, the service charge must be subtracted from the balance per books to reconcile the two balances.

Answer:

Question 7

• outstanding checks.
• canceled checks. (Correct answer)
• blank checks.
• checks in process.

Question 8

• addition to the balance per books.
• subtraction from the balance per bank.
• subtraction from the balance per books. (Correct answer)
• addition to the balance per bank.