Acct Chap 5

If you make an error while writing a check you should,

• Erase the error and rewrite over it
• Void the check and check stub and write and new check
• Circle the error and write the correction off to the side
• Any of the above are fine

When the Petty Cash fund is short by $2.00 at the end of the month, the entry to replenish Petty Cash includes...

• A credit to Misc Expense
• A credit to Cash Short and Over
• A Debit to Cash Short and Over
• A Debit to Petty Cash

The proper account classification for the Cash Short and Over account is...

• Asset
• Liability
• Expense 
• Owner's Equity

When you establish the Petty Cash account you need to journalize the transaction as follows...

• Debit Petty Cash, Credit Cash
• Debit Cash, Credit Misc Exp
• Debit Misc Exp, Credit Petty Cash
• Debit Petty Cash, Credit Cash Short and Over

What is the danger in using a blank endorsement to sign the back of a check?

• Nothing
• Anyone could cash the check
• You will no longer  be able to cash it
• All of the Above

The Petty Cash Report and Reconciliation Report are prepared,

• Daily
• At the end of the year
• At the end of the month
• Never

The endorsement used to sign a check written to you over to a third party,

• Blank
• Restrictive
• Special
• Payee

A bank automatically deducts the amount of a purchase from a checking account when this is used....

• Credit Card
• Secure Card
• Debit Card
• Checking Card

A check that has been cashed and paid by the writer's bank.

• Cashier's Check
• Voided Check
• Non-sufficient funds check
• Cancelled Check

An asset account used to allow a business to track a small amount of money kept on hand in the office.

• Cash
• Petty Cash
• Drawing
• Misc Expense