Chapter 5 Test Review

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

• True

• False

Voided checks should be recorded in the journal.

• True

• False

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

• 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

• VOID should be written on the check

• VOID should be written on the check stub

• a new check should be prepared

• All of the above

When cash is short, the entry to replenish petty cash includes a

• debit to Cash Short and Over

• credit to Cash Short and Over

• debit to Petty Cash

• credit to Miscellaneous Expense

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

• signature card

• check

• deposit slip

• none of thes

The entry to establish a $200.00 petty cash fund is

• debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00

• debit Cash, $200.00; credit Petty Cash, $200.00.

• debit Miscellaneous Expense, $200.00; credit Cash, $200.00.

• debit Petty Cash, $200.00; credit Cash, $200.00.

An endorsement on the back of a check consisting of the words “Pay to the order of” and a new check owner’s name is a

• blank endorsement

• special endorsement

• restrictive endorsement.

• deposit endorsement.