Chapter 5 Test Review

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

• True

• False

A bank account from which payments can be ordered by a depositor.

• Checking Account

• Debit Card

• Deposit Slip

• Dishonored Check

• Electronic Funds Transfer

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

• True

• False

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.

• Checking Account

• Debit Card

• Deposit Slip

• Dishonored Check

• Electronic Funds Transfer

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

• True

• False

A bank form listing the checks, currency, and coins that an account holder is adding to the bank account.

• Checking Account

• Debit Card

• Deposit Slip

• Dishonored Check

• Electronic Funds Transfer

Voided checks should be recorded in the journal.

• True

• False

A check dishonored by the bank because of insufficient funds in the account of the maker of the check.

• Endorsement

• Non-Sufficient Funds Check

• Petty Cash

• Petty Cash Slip

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

• True

• False

A check that a bank refuses to pay.

• Checking Account

• Debit Card

• Deposit Slip

• Dishonored Check

• Electronic Funds Transfer