Formative : Chapter 2 - Financial Information Process

The check/cheque may be marked FOR DEPOSIT ONLY is the example of ____________ endorsement.

• Blank

• Restrictive

• Local

• Special

_____________  are created to help ensure that the company is moving in the direction outlined in the company’s strategic plan.

• Budget

• Balance sheet

• Payroll

• Financial report

In order to stop payment on a cheque, the bank will need the following information EXCEPT:

• The amount of the cheque

• the cheque number

• the status of the payee

• the date of the cheque

An instruction to a bank to pay a fixed amount to a named individual at a fixed time each month until further notice is called a/an:

• Overdraft

• Bank Giro

• Periodical payment

• Standing order/instruction

A business must make payments on time and late payments may result _________.

• no additional charges apply

• get discounts

• a poor credit rating

• no charge paid

The overall method a business uses to safeguard assets is known as internal control. Internal control methods fall into three categories which are:

• Check, debit card, forge

• Audit, bonding, credit

• Preventive, detective, corrective

• Sales invoice, statement of account, balance sheet

Endorsement is a ____________ on the back of a check authorizing a bank to cash or deposit the check.

• Signature

• Payee

• Deposit

• Petty Cashier

Who will decide how much money will be kept in the petty cash fund?

• Officer

• Petty Cashier

• Company Manager

• Accountant

When workers paid on an hourly basis work more hours than those set as their standard workweek, they generally earn a higher rate for the __________ hours.

• Overtime

• Gross Salary

• Commission

• Deduction