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WorksheetsCash Control
Total questions: 102
Worksheet time: 51mins
Which best defines cash control in a business setting?
Steps to market products to customers
Methods to calculate payroll taxes
Rules for employee dress and conduct
Procedures to safeguard and track cash
What is the primary purpose of a deposit slip?
Document listing funds placed into an account
Form used to order new checkbooks
Statement summarizing monthly bank fees
Receipt issued for cash withdrawals
Bank reconciliation involves:
Setting up new accounts for employees
Negotiating loan interest with a lender
Forecasting future sales revenue
Matching company records with bank statement
Outstanding checks refer to:
Checks written but not yet cleared
Checks deposited and immediately posted
Checks issued by the Federal Reserve
Checks voided and destroyed by bank
Outstanding deposits are:
Deposits transferred to savings accounts
Deposits recorded but not posted by bank
Deposits made only by wire transfer
Deposits rejected due to missing ID
A bank service charge is:
Tax imposed by state on cash receipts
Penalty paid to suppliers for late orders
Fee deducted by bank for account services
Discount provided for early payment
NSF (Non-Sufficient Funds) indicates:
Customer requested a stop payment
Bank requires a new signature card
Account lacks money to cover a payment
Deposit was made after business hours
What is an endorsement on a check?
Signature authorizing transfer of funds
Note explaining purpose of payment
Barcode used for electronic deposits
Stamp verifying bank routing number
A blank endorsement typically:
Consists of a signature only
Restricts payment to a named person
Includes the payee’s full address
States the deposit account number
Which statement describes a restrictive endorsement?
Permits cashing by any bearer
Authorizes payment on a future date
Limits use, such as "For deposit only"
Adds a second payee to the check
A special endorsement most often:
Converts the check into a money order
Cancels the original payment entirely
Authorizes bank to waive all fees
Transfers check to a specified person
Who is the drawer on a check?
Recipient who deposits the funds
Person who writes and signs the check
Auditor who verifies account records
Bank that processes the transaction
Who is the payee on a check?
Vendor who prints blank checks
Party to whom the check is payable
Person who orders the checkbook
Bank officer who approves loans
The memo line on a check is used to:
Authorize overdraft protection
Write the payee’s mailing address
Record the bank’s routing code
Note the purpose of the payment
Which item would most likely appear in a check register?
Date, payee, amount, running balance
Bank’s branch manager’s signature
Annual interest rate on mortgages
Social Security numbers of payees
During bank reconciliation, which difference is typically adjusted?
Employee vacation accruals
Future sales not yet realized
Corporate income tax estimates
Outstanding checks not yet cleared
Which situation commonly triggers an NSF notice?
Deposited check bounces for lack of funds
ATM withdrawal exceeds daily limit
Wire transfer arrives after cutoff time
Cash deposit includes damaged bills
Which endorsement best protects against theft if a check is lost?
Restrictive endorsement
Blank endorsement
Special endorsement
No endorsement
Which action reduces outstanding deposits during reconciliation?
Bank posts previously recorded deposits
Company voids the original invoices
Supplier issues a credit memo
Customer cancels a purchase order
To transfer a check to another person, you would most likely use:
Restrictive endorsement for deposit only
Special endorsement naming the new payee
Service charge authorization form
Blank endorsement with today’s date
Which best explains the goal of cash control?
Increase sales through promotions
Lower tax liabilities each quarter
Eliminate the need for bank accounts
Prevent loss, ensure accurate recording
If a check is written but not yet shown on the bank statement, it is:
An outstanding check
A voided payment
A stale-dated check
A certified check
Which document helps you communicate deposit details to the teller?
Deposit slip completed by the customer
Monthly statement issued by the bank
Loan application form with ID
Service charge summary report
Which primary reason best explains why businesses implement cash control systems?
Avoid recording any cash transactions
Eliminate all bank fees permanently
Increase cash on hand daily
Reduce theft and fraud risks
When filling out a check, which item must match the amount box to ensure validity?
Endorsement area on back
Memo description line
Payee address section
Amount in words line
Which item is NOT a purpose of cash control for a business?
Make accurate financial decisions
Track money flowing in and out
Increase interest rates at the bank
Ensure books match bank records
A check register is primarily used to do which of the following?
Record checks and deposits
Store canceled checks
Print monthly statements
Issue electronic transfers
In a check register, service charges should be handled how?
Add to balance as income
Ignore until month end closes
Record but do not change balance
Record and deduct from balance
When automatic payments occur, how should you reflect them in your register?
Record only if a check number
Leave blank until mailed
Treat as a deposit every time
Add or deduct when posted
Which step begins the bank reconciliation process?
Add service charges immediately
Compare to check register balance
Subtract outstanding checks first
Start with bank statement balance
During reconciliation, outstanding deposits are handled by which operation?
Ignore until next month
Subtract from book balance
Convert to canceled checks
Add to the statement balance
Which items are subtracted when adjusting the bank statement to reach the adjusted bank balance?
Interest earned
Automatic deposits
Outstanding checks
Voided checks
After computing the adjusted bank balance, what is the next action?
Increase the ledger balance
Compare with check register
Void unmatched checks
Request a new statement
While reconciling, if the adjusted bank balance does not equal the register balance, which correction is appropriate?
Add outstanding checks again
Deduct service charges and NSF
Change the statement date
Ignore the difference entirely
Which factor commonly causes the bank balance to differ from the book balance?
Timing differences
Daily interest compounding only
Permanent posting bans
Unlimited free checks
NSF stands for which term in cash control contexts?
Non-sufficient funds
Negotiated savings fund
Net service fee
New statement format
How should NSF checks affect your check register?
Add the amount
Deduct the amount
Void the deposit only
Leave unchanged
EFT transactions impact the register in which way?
Treat as interest earned
Ignore if no paper check
Post only on bank statement
Record and add or deduct
When looking for errors during reconciliation, which method is effective?
Recheck addition and subtraction
Skip matching check numbers
Avoid comparing dates
Remove missing transactions
Which item correctly identifies a difference among check documents students should know?
Loan schedule vs. amortization vs. note
Bank statement vs. ledger vs. vault
Check copy vs. checkbook vs. register
Invoice vs. receipt vs. contract
Writing a check for more money than you have results in:
Void
Interest
NSF
Outstanding check
The line where the purpose of the check is written is the:
Drawer
Memo
Payee
Amount line
A check written but not yet cleared is:
Outstanding
NSF
Deposited
Voided
Which endorsement limits use to “For Deposit Only”?
Draft
Blank
Special
Restrictive
A check with errors should be:
Erased
Shredded
Voided
Deposited
When recording a check, you:
Subtract balance
Add only if under $50
Add balance
skip it
What do you write on a check first?
Memo
Date
Payee
Amount in words
A check that has cleared the bank is called:
Float
Voided
NSF
Canceled check
Which item increases your check register balance?
Service charge
ATM withdrawal
Interest earned
NSF check
Deposit slips require all EXCEPT:
Account number
Checks received
Cash received
Payee signature
After a deposit, your balance:
Stays same
Voids
Goes up
Goes down
A check register is used to track:
Only checks
All transactions
Only withdrawals
Only deposits
Cash paid out is recorded as a:
NSF
Interest
Debit
Credit
ATM withdrawals cause your register balance to:
Stay same
Decrease
Increase
When you forget to record a check, your register:
Too low
Is too high
Matches bank
Exact
A register’s purpose is to:
Replace the bank
Compare payees
Create taxes
Track every cash movement
Cash short and over is used when:
You write a check
You endorse checks
You find a mismatch in cash on hand
You deposit cash
Depositing checks from customers is recorded as:
Expense
Revenue
Liability
Fee
Bank statements show:
All monthly activity
Only checks
Only deposits
Outstanding checks:
Have cleared
Have not cleared
Are NSF
Service charges appear on:
Bank statement
Deposit slip
Check register
When reconciling, outstanding checks are:
Subtracted
Added
Bank errors are corrected:
On your register
By contacting bank
Ignored
If your register and bank statement don’t match, you:
Erase checks
Reconcile
Void statement
Interest earned:
Not recorded
Decreases register
Increases your register
A canceled check is one that:
Returned NSF
Cleared bank
Was voided
A deposit in transit is:
NSF
Cleared
Outstanding deposit
EFT payments should be:
Added to register
Subtracted from register
Ignored
NSF reduces:
Book side
Bank side
Service fees reduce:
Book side
Bank side
If you omit a service fee, your register is:
Understated
Overstated
If you forget to record a deposit, your register is:
Too high
Too low
Math errors are corrected on:
Book side
Bank side
Which is not part of reconciliation?
Outstanding checks
Outstanding deposits
Debit card purchases
The final goal is:
Make bank increase funds
Match adjusted balances
Service charge of $14 must be:
Added
Subtracted
Bank shows interest of $3. You:
Add $3 to register
Subtract $3
Outstanding check means:
Not on bank statement
Not in your register
If bank statement is 500,outstandingchecksare 100, outstanding deposits $200, adjusted bank balance =
$600
$400
$800
Which increases bank balance?
Writing a check
Your deposit
Which increases YOUR register?
Fees
Interest
Which reduces your register?
Outstanding check
Service charge
T/F Outstanding checks are already cleared.
False
True
T/F Bank fees must be recorded in the check register.
True
False
T/F A deposit in transit has not hit the bank yet.
True
False
T/F A check register only records checks.
False
True
T/F Interest earned is subtracted from your register.
False
True
T/F A voided check cannot be used.
True
False
T/F A canceled check has cleared the bank.
False
True
T/F A service charge appears on the bank statement.
True
False
T/F A blank endorsement is the least secure.
True
False
T/F Endorsements go on the back of checks.
False
True
T/F Reconciliation is required monthly.
False
True
T/F You add outstanding deposits to the bank side.
True
False
T/F Bank errors should be corrected in your register.
False
True
Explain the purpose of a check register.
Tracks deposits and payments for accuracy
Stores canceled checks for future audits
Holds bank statements for monthly review
Calculates loan interest automatically
Why should businesses reconcile monthly?
To detect errors and prevent fraud early
To earn higher interest on balances
To qualify for overdraft protection
To avoid recording deposits in transit
Describe what a service charge is and why it matters.
A bank fee that reduces account balance
A customer tip added to sales receipts
A payroll tax withheld from wages
A supplier discount for early payment
What happens when a check is NSF?
Bank returns the check and charges a fee
Bank clears the check after a delay
Bank increases the account balance
Bank transfers funds via EFT automatically
How do you fix a math error in the register?
Correct entry, adjust balance, note correction
Wait for bank statement and ignore error
Transfer funds via EFT to cover mistake
Void the register page and restart entries
What is EFT and how does it impact reconciliation?
Manual deposits that increase register detail
Paper checks that clear more slowly
Electronic transfers that may bypass register
Cash withdrawals recorded only by bank
Explain how to calculate adjusted bank balance step-by-step.
Start with register balance, add EFTs, subtract service charges, add canceled checks
Start with bank balance, add deposits in transit, subtract outstanding checks, correct bank errors
Start with register balance, subtract deposits in transit, add outstanding checks, ignore bank errors
Start with bank balance, add outstanding checks, subtract deposits in transit, add service charges
