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Total questions: 20
Worksheet time: 30mins
Which of the following is NOT one of the three main parties to a cheque?
a) Drawer
b) Drawee
c) Payee
d) customer
What is the role of the Drawer in a cheque transaction?
d) To endorse the cheque
c) To process the cheque
b) To receive the payment
a) To issue the cheque
Which party is responsible for paying the amount specified in a cheque?
d) Endorser
c) Payee
b) Drawee
a) Drawer
What must a cheque contain to be considered valid?
b) Date
a) Signature of the Drawer
c) Amount in figures and words
d) All of the above
What does it mean when a cheque is "crossed" with two parallel lines?
a) It can only be cashed immediately.
b) It can only be deposited directly into a bank account, cannot be cashed over the counter.
c) It should be destroyed.
d) It requires two signatures to be valid.
A cheque is best described as:
a) A written promise to pay in the future
b) A written order to a bank to pay a specific amount
c) A receipt for cash received
d) A type of loan agreement
The bank that the cheque is cashed from is called the:
a) Drawer
b) Drawee
c) Payee
d) Issuer
Petty cash is used for:
a) Paying large business expenses
b) Keeping money for emergencies only
c) Small, everyday expenses
d) Employee salaries
Which of the following is most likely to be paid using petty cash?
a) Monthly rent
b) Purchase of office chairs
c) Taxi fare for a staff errand
d) Electricity bill
Which of the following is a common reason for a cheque to bounce?
d) The cheque is dated in the future
a) Insufficient funds in the account
b) The cheque is written in pencil
c) The payee is not a business
What is the name for the person or business that receives the payment from a cheque?
c) Payee
b) Drawee
d) Endorser
a) Drawer
Petty cash is normally kept in a secure location such as a locked drawer or cash box.
True
False
Unsure
All of the Above
What information is typically recorded on a petty cash voucher?
a) Date, amount, description of expense, and recipient's signature.
b) Only the total amount taken.
c) The drawer and payee of a cheque.
d) Next year's budget forecast.
What is a debit card?
a) A card that provides a short-term loan from a financial institution.
b) A card that allows the cardholder to withdraw cash or make purchases using money directly from their own account.
c) A card used exclusively for online shopping that builds credit history.
d) A card issued by a store that can only be used at that specific retailer.
When you use a debit card for a purchase, where does the money come from?
a) It is borrowed from the card issuer and must be repaid later.
b) It is drawn directly from your savings or checking account.
c) It comes from a pre-set credit limit assigned by the bank.
d) None of the above
What is the KEY difference between a debit card and a credit card transaction?
a) Debit cards can only be used in-person, while credit cards can be used online.
b) Debit card purchases immediately and reduces your bank account balance, while credit card purchases create a loan you must repay.
c) Credit cards always have higher security than debit cards.
.
d) Debit cards help build your credit score, while credit cards do not
What is the best practice for keeping your debit card PIN secure?
a) Write it on the back of your card in case you forget.
b) Share it with a trusted family member for emergencies.
c) Never share it with anyone or write it down where it can be easily found.
d) Use a simple, easy-to-remember number like your birth year.
What is the primary purpose of a petty cash fund?
a) To manage large financial transactions.
b) To cover small, incidental expenses.
d) To serve as a savings account.
c) To pay employee salaries.
Which of the following best describes a credit card?
a) A card that allows you to spend money you do not have, which must be repaid later.
d) A card that can only be used at specific retailers.
b) A card that withdraws money directly from your bank account.
c) A card used only for online purchases.
What happens if you exceed your credit limit on a credit card?
a) You will be charged an over-limit fee.
d) Your credit score will improve.
b) Your card will be automatically canceled.
c) You can still make purchases without any consequences.
