Chapter 5 Accounting I

Ownership of a check cannot be transferred.

• True

• False

Voided checks should be recorded in the journal.

• True

• False

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

• True

• False

When petty cash is replenished, petty cash is credited and cash is debited.

• True

• False

A check with blank endorsement can be cashed by anyone who has the check.

• True

• False

An outstanding check is one that has been issued but not yet reported on a bank statement by the bank.

• True

• False

A bank requires that the signature of the person authorized to sign checks be on the signature card.

• True

• False

The source document for an electronic funds transfer is a memorandum.

• True

• False

The source document for a debit card purchase is a memorandum.

• True

• False

Each time cash or checks are placed in a bank account, the customer prepares a

• Signature card

• deposit slip

• check

• none of these