Accounting Chp 5

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

• True
• False

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

• True
• False

Voided checks should be recorded in the journal.

• True
• False

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

• True
• False

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

• True
• False

If any kind of error is made in preparing a check,

• a. VOID should be written on the check.
• b. VOID should be written on the check stub.
• c. a new check should be prepared.
• d. all of the above.

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

• a. signature card.
• b. check.
• c. deposit slip.
• d. none of these.

The entry to establish a $200.00 petty cash fund is

• a. debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00.
• b. debit Cash, $200.00; credit Petty Cash, $200.00.
• c. debit Miscellaneous Expense, $200.00; credit Cash, $200.00.
• d. debit Petty Cash, $200.00; credit Cash, $200.00.

A lost check with a blank endorsement on it can be cashed by

• a. anyone who has the check.
• b. only the person whose name follows the words “Pay to the order of.”
• c. only the person who endorsed the check.
• d. no one.

A petty cash fund is always replenished

• a. daily.
• b. weekly.
• c. at the end of the month.
• d. none of these.