Accounting Chapter 5 Review 2025

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.

• credit to Cash Short and Over.

• debit to Petty Cash.

• credit to Miscellaneous Expense.

Cash Short and Over is classified as a(n)

• asset.

• liability.

• expense.

• equity.

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.