II. DIRECTION: A.Read each sentence carefully and determine whether the statement is True or False. Write your answer in the space provided before the number. 1. The account holder may issue a bank check from savings account. 2. The account holder may use the withdrawal slip to get money from his checking account. 3. The deposits accounts are investment accounts in nature 4. Time deposit normally has fixed interest rate and fixed placement period. 5. Bank statement is a letter issued by the bank that certifies the existence of the bank account. 6. Deposit in transit is a reconciling item added to unadjusted book balance. 7. Outstanding check is a reconciling item deducted from the unadjusted bank balance. 8. Debit memo is an adjustment to the bank side of the bank reconciliation. 9. Bank service charge is reconciling item deducted from unadjusted book balance. 10. Adjusting journal entries are prepared based on the reconciling items on the bank side of the bank reconciliation.

Explain the difference between direct and indirect quotations.

Describe about the deferrals? Explain it in detail.

Match each of the components of faithful representation with its definition.Faithful Representation                             Definition1 . Freedom from error      a. All information necessary to describe an item is                                                  reported. 2. Neutrality                       b. Information that does not bias the decision                                                         maker. 3. Completeness                c. Reported amounts reflect the best available                                                        information.