Accounting Chapter 5

In accounting, money is usually referred to as cash.

• True

• False

Most businesses make major payments with cash.

• True

• False

Ownership of a check cannot be transferred.

• True

• False

If a bank does not receive payment from the person who signed the check, each endorser of the check is individually liable for payment.

• True

• False

Blank endorsements should be used when sending checks through the mail.

• True

• False

Voided checks should be recorded in the journal.

• True

• False

When a bank statement is received, the depositor should verify its accuracy immediately.

• True

• False

Banks usually refuse to accept altered checks.

• True

• False

On a bank statement reconciliation, the adjusted check stub balance must be the same as the adjusted bank balance.

• True

• False

The petty cash fund is a liability with a normal debit balance.

• True

• False