Chapter 5

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

• True

• False

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

• True

• False

Voided checks should be recorded in the journal.

• 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.

• Debit to Petty Cash.

• Credit to Cash Short and Over.

• Credit to Miscellaneous Expense.

Cash Short and Over is classified as a(n)

• Asset.

• Liability.

• Equity.

• Expense.

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

• Signature card.

• Check.

• Deposit slip.

• None of these.

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.