Accounting Chapter 5: Cash control systems Study Guide

Because cash transactions occur more frequently than other transactions, the chances for making recording erros affect cash are less.

• T
• F

When a deposit is made in a bank account, the bank issues a receipt.

• T
• F

There are four types of endorsements commonly used: blank, special, original, and restrictive.

• T
• F

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

• T
• F

When writing a check, the first step is to prepare the check stub.

• T
• F

Most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime.

• T
• F

The amount of a check is written twice on each check.

• T
• F

A check that contains errors must be marked with the word VOID and another check must be written.

• T
• F

An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement.

• T
• F

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

• T
• F