Unit 5 Test Review - Accounting

An amount of cash that a business keeps on hand for small payments or purchases is called:

• petty cash

• a cash advance

• an electronic funds transfer

• a debit card

A check that has been issued but not reported on a bank statement is called a(n):

• dishonored check

• voided check

• blank endorsement

• outstanding check

An endorsement that gives specific instructions on what to do with a check is called:

• special endorsement

• signature endorsement

• blank endorsement

• restrictive endorsement

A business form that is used to instruct the bank to pay cash from your account is called a(n):

• receipt

• deposit

• invoice

• check

A check endorsement that transfers ownership to anyone that has possession of the check is called a:

• restrictive endorsement

• transfer endorsement

• blank endorsement

• special endorsement

If you wanted to sign a check over to a friend, so they can cash it, you would use a:

• restrictive endorsement

• transfer endorsement

• blank endorsement

• special endorsement

It is good practice to complete a check stub prior to writing the check

• True

• False

Why would a bank statement not match business records?

• service fees

• outstanding cchecks

• outstanding deposits

• all of these

How would you journalize a bank service charge?

• debit Miscellaneous Expense and credit Cash

• debit Accounts Payable and credit Cash

• debit Cash and credit Service Charge

• debit Cash and credit Bank Expense

A record of all the activity in a bank account is called a:

• receipt

• bank invoice

• bank statement

• deposit slip