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WorksheetsAccounting Chapter 5: Cash control systems Study Guide
Total questions: 40
Worksheet time: 50mins
Name
Class
Date
1.
Because cash transactions occur more frequently than other transactions, the chances for making recording erros affect cash are less.
a)
T
b)
F
2.
When a deposit is made in a bank account, the bank issues a receipt.
a)
T
b)
F
3.
There are four types of endorsements commonly used: blank, special, original, and restrictive.
a)
T
b)
F
4.
A check with a blank endorsement can be cashed by anyone who has possession of the check.
a)
T
b)
F
5.
When writing a check, the first step is to prepare the check stub.
a)
T
b)
F
6.
Most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime.
a)
T
b)
F
7.
The amount of a check is written twice on each check.
a)
T
b)
F
8.
A check that contains errors must be marked with the word VOID and another check must be written.
a)
T
b)
F
9.
An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement.
a)
T
b)
F
10.
An outstanding check is one that has been issued but not yet reported on a bank statement by the bank
a)
T
b)
F
11.
Banks deduct service charges from customers' checking accounts without requiring customers to wirte a check for the amount.
a)
T
b)
F
12.
Not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account as well.
a)
T
b)
F
13.
The journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by check.
a)
T
b)
F
14.
The source document for an electronic funds transfer is a memorandum.
a)
T
b)
F
15.
The source document for a debit card purchase is a memorandum.
a)
T
b)
F
16.
TechKnow Consulting maintains a petty cash fund for making large cash payments without writing checks.
a)
T
b)
F
17.
Businesses use petty cash when writing a check is not time or cost effective.
a)
T
b)
F
18.
A memorandum is the source document for the entry to record establishing a petty cash fund.
a)
T
b)
F
19.
Anytime a payment is made from the petty cahs fun, a petty cahs slip is prepared showing proof of a petty cahs payment.
a)
T
b)
F
20.
When the petty cash fund is replenished, the balance of the petty cash account increases.
a)
T
b)
F
21.
What occurs when accountants verify that the info listed matches the info in the checkbook?
a)
Reconciliation
b)
Balancing
c)
Journalizing
d)
Posting
22.
An an endorsement consisting only of the endorser’s signature is known as a ___________________.
a)
Blank endorsement
b)
Special endorsement
c)
Restrictive endorsement
23.
What is the term for a bank account from which payments can be ordered by a depositor?
a)
Savings account
b)
Checking account
24.
What source document is most likely to be used for an EFT transaction?
a)
Memo
b)
Receipt
c)
Sales invoice
d)
Calculator tape
25.
T/F: Debit & credit cards are the same thing.
a)
True
b)
False
26.
This type of endorsement prevents unauthorized persons from cashing the check if it is lost or stolen.
a)
Blank endorsement
b)
Special endorsement
c)
Restrictive endorsement
27.
T/F: Cash receipts are journalized at the time cash is received.
a)
True
b)
False
28.
A check that contains errors must be marked as _____________________.
a)
VOID
b)
NSF
c)
EFT
d)
REV$
29.
What is an endorsement indicating a new owner of a check?
a)
Blank endorsement
b)
Special endorsement
c)
Restrictive endorsement
30.
T/F: Dishonored checks positively influence one's credit score.
a)
True
b)
False
31.
T/F: Writing checks is not always time or cost effective.
a)
True
b)
False
32.
Cashed checks are usually kept on file at the bank and are referred to as _______________.
a)
Cancelled checks
b)
Voided checks
c)
NSF checks
d)
Bounced checks
33.
What type of normal balance does petty cash have?
a)
Normal debit balance
b)
Normal credit balance
34.
What must be completed each time cash or checks are placed in a bank account?
a)
Deposit slip
b)
Petty cash slip
c)
Checking account slip
d)
Money tracking slip
35.
Check stubs with NO checkmark indicate a(n) __________________?
a)
Outstanding check
b)
NSF check
c)
Void check
d)
Cancelled check
36.
Which of the following reasons explains why a check might be dishonored?
a)
The check appears to be altered
b)
The check is written properly
c)
The check's dollar amount is listed
d)
The check has the routing number listed
37.
How do most businesses make "cash" transactions?
a)
Through a check
b)
Through cash
c)
Through a debit card
d)
Through EFT
38.
What term is used to describe check that a bank refuses to pay?
a)
Dishonored check
b)
Outstanding check
c)
Cancelled check
d)
Bank check
39.
When is petty cash replenished?
a)
At the end of the month OR when it is low
b)
When it is low OR at the end of the year
c)
Every fiscal period OR at the end of the month
d)
At the end of the month OR when transactions are recorded
40.
An amount of cash kept on hand & used for making small payments is known as _______________?
a)
Petty cash
b)
Cash on hand
c)
Miscellaneous cash
d)
Posted cash
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