1. As of December 31, Year 1, Chippewa Company has $26,440 cash in its checking account, as well as several other items listed below: Bank credit card slips signed by customers $ 3,600 Money market fund balance $ 25,000 Investment in U.S. Treasury bills, mature within 90 days $ 80,000 Checks received from customers, but not yet deposited in the bank $ 4,600 $ 70,000 Investment in 4,500 shares of Coca-Cola capital stock What amount should be shown in Chippewa's December 31, Year 1, balance sheet as "Cash and cash equivalents"? $209,640 $30,040 $139,640 $59,640 2. A. B. C. D. When preparing a bank reconciliation, deposits in transit will: Decrease the balance per the bank statement. Decrease the balance per depositor's records. Increase the balance per depositor's records. Increase the balance per the bank statement. 3. A bank reconciliation explains the differences between: A. Cash receipts and cash disbursements for the period. B. The balance of cash in the bank and the budgeted expenditures for the upcoming accounting period. C. The balance per bank statement and cash expected to be on hand according to the cash forecast. D. The balance per bank statement and the cash balance per the accounting records of the depositor. 4. Which of the following criteria must be met for revenue to be recognized? A. The company receiving the revenue has performed all of the functions that are included in B. the agreement with the customer and all the costs associated with the transaction are known. C. The company receiving the revenue has invoiced the customer. D. The company receiving the revenue has collected the amount due from the customer. 5. Which of the following statements about a periodic inventory system is NOT correct? A. These systems are used primarily by small businesses with manual accounting systems. B. The system does not include an up-to-date inventory ledger. C. The Cost of Goods Sold account is updated as sales transactions occur. D. The balance in the Inventory account remains unchanged until the end of the period. 6. In comparing a perpetual inventory system with a periodic inventory system, which of the following statements is not correct? A periodic system does not include an inventory subsidiary ledger. Regardless of the system in use, most businesses take a physical inventory at least once a year. Most large companies use perpetual inventory systems. The perpetual method is easier to apply in a manual accounting system. 7. The inventory system that does NOT update the Inventory account automatically at the time of each purchase or sales is the _______________ method/system. Periodic Perpetual 8. A check written by the company for $167 is incorrectly recorded by a company as $176. On the bank reconciliation, the $9 error should be a. added to the balance per books. b. deducted from the balance per books. c. added to the balance per bank. d. deducted from the balance per bank.