The following items may appear on a bank statement: 1. Bank correction of an error from recording a $4,800 deposit as $8,400

The following items may appear on a bank statement:
1. Bank correction of an error from recording a $4,800 deposit as $8,400
2. EFT payment
3. Note collected for company
4. Service charge

Using the format shown below, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.








Item No.
Appears on the
Bank Statement as
a Debit or Credit
Memo
Increases or Decreases the
Balance of the Company’s
Bank Account



Answer:











Item No.
1
2
3
4
Appears on the Bank Increases or Decreases
Statement as a Debit the Balance of the
or Credit Memo Company’s Bank Account
debit memo decreases
debit memo decreases
credit memo increases
debit memo decreases




Identify each of the following as relating to (a) the control environment, (b) control procedures, or (c) information and communication.

1. Management’s philosophy and operating style
2. Report of company’s conformity with environmental laws and regulations
3. Separating related operations


Answer:
1. (a) the control environment
2. (c) information and communication
3. (b) control procedures