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Accounting Chapter 5 Review

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

A check that a bank refused to pay.

a)

non-sufficient funds check

b)

dishonored check

2.

A check with a future date on it.

a)

posted dated check

b)

canceled check

c)

voided check

3.

A form showing proof of a petty cash payment.

a)

petty cash slip

b)

petty cash

c)

deposit slip

4.

A bank account from which payments can be ordered by a depositor.

a)

checking account

b)

petty cash account

5.

An endorsement consisting only of the endorser’s signature.

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

6.

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.

a)

debit card

b)

credit card

7.

A petty cash on hand amount that is more than a recorded amount.

a)

cash over

b)

cash short

8.

A signature or stamp on the back of a check, transferring ownership.

a)

endorsement

b)

blank endorsement

c)

special endorsement

d)

restrictive endorsement

9.

A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.

a)

electronic funds transefer

b)

debit card

c)

check

10.

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.

a)

bank statement

b)

reconciliation

c)

canceled check

11.

An amount of cash kept on hand and used for making small payments.

a)

petty cash

b)

cash

c)

checks

12.

A bank form listing the checks, currency, and coins that an account holder is adding to the bank account.

a)

deposit slip

b)

petty cash slip

c)

check

13.

An endorsement restricting further transfer of a check’s ownership.

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

14.

A petty cash on hand amount that is less than a recorded amount.

a)

cash short

b)

cash over

15.

A check that has been paid by the bank.

a)

canceled check

b)

dishonored check

c)

voided check

16.

A check that cannot be processed because the maker has made it invalid.

a)

canceled check

b)

dishonored check

c)

voided check

17.

A check dishonored by the bank because of insufficient funds in the account of the maker of the check.

a)

non sufficient funds check

b)

voided check

c)

canceled check

18.

An endorsement indicating a new owner of a check.

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

19.

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

a)

true

b)

false

20.

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

a)

true

b)

false

21.

Voided checks should be recorded in the journal.

a)

true

b)

false

22.

The source document for an electronic funds transfer is a memorandum.

a)

true

b)

false

23.

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

a)

VOID should be written on the check.

b)

VOID should be written on the check stub.

c)

a new check should be prepared.

d)

all of the above

24.

When cash is short, the entry to replenish petty cash includes a

a)

debit to Cash Short and Over.

b)

credit to Cash Short and Over.

c)

debit to Petty Cash.

d)

credit to Miscellaneous Expense.

25.

Cash Short and Over is classified as a(n)

a)

asset

b)

liability

c)

expense

d)

equity

26.

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

a)

signature card

b)

deposit slip

c)

check

d)

none of these

27.

The entry to establish a $200.00 petty cash fund is

a)

debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00.

b)

debit Cash, $200.00; credit Petty Cash, $200.00.

c)

debit Miscellaneous Expense, $200.00; credit Cash, $200.00.

d)

debit Petty Cash, $200.00; credit Cash, $200.00.

28.

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

a)

anyone who has the check.

b)

only the person whose name follows the words “Pay to the order of.”

c)

only the person who endorsed the check.

d)

no one

29.

A petty cash fund is always replenished

a)

daily

b)

weekly

c)

at the end of the month

d)

none of these

30.

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

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

d)

deposit endorsement

31.

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

a)

blank endorsement

b)

special endorsement

c)

restrictive endorsement

d)

deposit endorsement

32.

The petty cash fund is a liability with a normal debit balance.

a)

true

b)

false