Chapter 5 True/False

Because cash transactions occur more frequently than other transactions, there is more chance for making recording errors affecting cash.

• True

• False

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

• True

• False

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

• True

• False

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

check.

• True

• False

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

• True

• False

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

• True

• False

The amount of a check is written twice on each check

• True

• False

A check that contains minor errors can be corrected neatly and initialed

• True

• False

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

• True

• False

An outstanding check is one that has not yet been issued

• True

• False