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Chapter 5 Quiz

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

What is a checking account?

a)

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

b)

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

c)

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

d)

A check that a bank refuses to pay

2.

What is an endorsement?

a)

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

b)

Signature only

c)

An endorsement indicating a new owner of a check

d)

An endorsement restricting further transfer of a check’s ownership

3.

What is a blank endorsement?

a)

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

b)

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

c)

Signature only

d)

An endorsement indicating a new owner of a check

4.

What is a restrictive endorsement?

a)

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

b)

An endorsement restricting further transfer of a check’s ownership

c)

Signature only

d)

An endorsement indicating a new owner of a check

5.

What is a special endorsement?

a)

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

b)

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

c)

Signature only

d)

An endorsement indicating a new owner of a check

6.

What is a postdated check?

a)

A check with a future date on it

b)

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

c)

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

d)

A check that a bank refuses to pay

7.

What is petty cash?

a)

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

b)

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

c)

A check that a bank refuses to pay

d)

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

8.

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

a)

checking account

b)

bank statement

c)

savings account

d)

petty cash report

9.

Reasons why a check would be dishonored?

a)

Signature does not match

b)

It is postdated

c)

Something is altered on the check

d)

There are sufficient funds in the account

10.

What is the purpose of the bank reconciliation?

a)

To notify the bank of any changes

b)

To make sure your checking account and bank statement are the same.

c)

To make sure your checking account and bank statement are not the same

11.

When do businesses replenish petty cash?

a)

When it gets too high

b)

Always at the end of the month

c)

When the accountant tells you to do so

d)

When it gets too low

12.

Why must businesses replenish petty cash at the end of the month?

a)

Accounting Concept: Matching Expenses with Revenue

b)

Accounting Concept: Realization of Revenue

c)

Accounting Concept: Unit of Measurement

d)

Accounting Concept: Objective Evidenct

13.

Reasons why a check would be dishonored?

a)

There are non-sufficient funds in the account

b)

There is a stop payment on the check

c)

The amounts in figures and words do not match

d)

There is nothing written in the "For" line