Reference no: EM132765984

Problem 1: If the cash balance shown in a company's accounting records is less than the correct cash balance, and neither the company nor the bank has made any errors, there must be

a) deposits credited by the bank but not yet recorded by the company.

b) deposits in transit.

c) outstanding checks.

d) bank charges not yet recorded by the company.

Problem 2: Which of the following adjusting entries may a reversing entry be used?

a) debit insurance expense, credit prepaid insurance

b) debit interest receivable, credit interest income

c) debit unearned rental income, credit rental income

d) debit depreciation expense, credit accumulated depreciation