Question

question 13 (5 points)
from the bank reconciliation, no entry was recorded for deposits in transit. this would cause
no impact since deposits arent recorded on the books.
no impact since deposits in transit are already included in the balance per books.
assets to be overstated.
assets to be understated.

question 14 (5 points)
a full endorsement on a check
is the same as a blank endorsement.
can be endorsed only by the person or company named in the original endorsement.
is the safest endorsement for businesses.
none of the above

Explanation:

Analyze Question 13

Using the Bank Reconciliation knowledge point, we evaluate the impact of not recording a journal entry for deposits in transit. Deposits in transit are cash receipts that have already been recorded in the company's accounting records (books) but have not yet been processed and recorded by the bank. Because these deposits are already recorded on the books, no adjusting journal entry is required on the company's books during the reconciliation process. Therefore, there is no impact on the book balance or assets, as they are already correctly included in the balance per books.

Analyze Question 14

We evaluate the definition and characteristics of a full endorsement on a check. A full endorsement (or special endorsement) specifies the person or company to whom the check is being transferred (e.g., "Pay to the order of [Name]"). Once a full endorsement is made, only the specified person or company named in that endorsement can endorse, cash, or transfer the check further. This makes it much safer than a blank endorsement, but the most accurate statement among the choices is that it can be endorsed only by the person or company named in the original endorsement.

Answer:

Question 13

• no impact since deposits aren't recorded on the books.
• no impact since deposits in transit are already included in the balance per books. (Correct answer)
• assets to be overstated.
• assets to be understated.

Question 14

• is the same as a blank endorsement.
• can be endorsed only by the person or company named in the original endorsement. (Correct answer)
• is the safest endorsement for businesses.
• None of the above