Accounting ch. 5 & 6 review

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

• signature card

• deposit slip

• check

• none of these

An endorsement on the back of a check consisting only of a signature is

• a blank endorsement

• a special endorsement

• a restrictive endorsement

• an incorrect endorsement

a lost check with a blank endorsement on it can be cashed by

• anyone who has the check

• only the person whose name follows the words "pay to the order of"

• only the person who endorsed the check

• no one

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

• signature endorsement

an endorsement on the back of a check indicating that the check is to be accepted for deposit only is a

• Blank endorsement

• special endorsement

• restrictive endorsement

• deposit endorsement

if any kind of error is made in preparing a check,

• a new check should be prepared

• VOID should be written on the check stub

• VOID should be written on the check

• all answers

the entry to establish a $200 petty cash fund is

• debit cash, credit petty cash

• debit miscellaneous expense, credit cash

• debit petty cash, credit cash

• debit petty cash, credit miscellaneous expense

a petty cash fund is always replenished

• daily

• weekly

• at the end of the month

• none of these

the bank statement shows a checking account balance of $5,500. There are outstanding checks totaling $600, an outstanding deposit of $400, and a bank service charge of $15. The cash account balance should be...

• $5,300

• $5,700

• $5,285

• none of these

Answer explanation

5,500 - 600 = 4900

4900 + 400 = 5,300

5,300 - 15 = 5,285

following the same accounting procedures in the same way in each accounting period is an application of the accounting concept

• matching expenses with revenue

• accounting period cycle

• consistent reporting

• going concern