Which of the following will decrease the home office account of the branch? Credit memo received from the home office Net income of the branch Collection by the branch of home office accounts receivable Payment by the home office of the liability of the branch
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- Credit memo received from the home office
- Net income of the branch
- Collection by the branch of home office accounts receivable
- Payment by the home office of the liability of the branch
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- If the branch receives credit memo from the home office, the branch shall record it in its separate statement of financial position by Disclosure Debiting the home office account Crediting the home office account Increasing the home office account25 Which of the following will decrease the home office account of the branch? Group of answer choices Collection by the branch of home office accounts receivable Payment by the home office of the liability of the branch Net income of the branch Credit memo received from the home officeTransactions between branches are recorded by the transacting branches A. As if each of them is transacting with the home office. B. debiting or crediting their own inter- branch accounts . C. As if each of them is transacting with the home office and by debiting or crediting their own inter-branch accounts. D. Not accounted for by the branches
- 10. Transactions between branches are recorded by the transacting branchesA. As if each of them is transacting with the home office.B. By debiting or crediting their own inter-branch accounts.C. As if each of them is transacting with the home office and by debiting or crediting their owninter-branch accounts.D. Not accounted for by the branches10. Transactions between branches are recorded by the transacting branches A. As if each of them is transacting with the home office. B. By debiting or crediting their own inter-branch accounts. C. As if each of them is transacting with the home office and by debiting or crediting their own inter-branch accounts. D.Not accounted for by the branchesThe income: Branch ledger account is maintained is the accounting records of: a. Neither the home office nor the branch b. Both the home office and the branch c. The branch only d. The home office only
- How will the following items affect the pass book balance? Direct payment by customer into the back account. Interest on investment collected by the bank.which of the following would explain why the investment in Branch account is less than the Home Office Current account?A. a cash transfer to the home office is in transitb. a home office has received and deposited a remittance from a branch customer but has not yet notified the branchc. an inventory shipment to the branch (at cost) in transitd. a cash transfer to the branch is in transitWhich of the following is an appropriate reconciling item to the balance per bank in a bank reconciliation? a. Bank service charge b. Chargeback for NSF check c. Deposit in transit d. Bank interest
- S1: An expense item allocated by the home office to a branch is recorded by thebranch by a debit to an expense ledger account and a credit cash-home office.S2: A debit to Home Office ledger account and a credit to the Trade AccountsReceivable account in the accounting records of a branch indicate that the homeoffice collected accounts receivable of the branch. A. Only S1 is correct.B. Both statements are incorrect.C. Only S2 is correct.D. Both statements are correct.Which of the following is supported with a debit memorandum? a.proceeds of bank loan b.collections already forwarded to the bank for deposit but too late to appear in the bank statement c.matured time deposits transferred by bank to the current account d.notes receivable collected by the bank in favor of the depositor e.charges for penaltyWhy would a business maintain a separate account receivable account (within an accounts receivable subsidiary ledger) for each customer, as opposed to maintaining a single Accounts Receivable account (in the general ledger) for all customers?
