Name:
Class:
Date:
Indicate whether the statement is true or false.
1. When petty cash is replenished, Petty Cash is debited and Cash is credited.
a.
True
b.
False
2. The petty cash fund is a liability with a normal debit balance.
a.
True
b.
False
3. Voided checks should be recorded in the journal.
a.
True
b.
False
4. An outstanding check is one that has been issued but not yet reported on a bank statement.
a.
True
b.
False
5. The source document for an electronic funds transfer is a memorandum.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
6. Each time cash or checks are placed in a bank account, the customer prepares a
a.
signature card.
b.
check.
c.
deposit slip.
d.
none of these.
7. 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.
8. 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.
9. A petty cash fund is always replenished
a.
daily.
b.
weekly.
c.
at the end of the month.
d.
none of these.
10. 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.
Name:
Class:
Date:
c.
debit Miscellaneous Expense, $200.00; credit Cash, $200.00.
d.
debit Petty Cash, $200.00; credit Cash, $200.00.
11. 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.
12. Cash Short and Over is classified as a(n)
a.
asset.
b.
liability.
c.
expense.
d.
equity.
13. 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.
14. 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.
incorrect endorsement.
Directions: Select the one term that best fits each definition. Print the letter identifying your choice on the line to the left
of the statement.
a.
bank statement
b.
blank endorsement
c.
canceled check
d.
cash over
e.
cash short
f.
checking account
g.
debit card
h.
deposit slip
i.
dishonored check
j.
electronic funds transfer
k.
endorsement
l.
non-sufficient funds check
m.
petty cash
n.
petty cash slip
o.
postdated check
p.
restrictive endorsement
q.
special endorsement
r.
voided check
15. A check that a bank refuses to pay.
Name:
Class:
Date:
16. A check with a future date on it.
17. A form showing proof of a petty cash payment.
18. A bank account from which payments can be ordered by a depositor.
19. An endorsement consisting only of the endorser’s signature.
20. A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
21. A petty cash on hand amount that is more than the recorded amount.
22. A signature or stamp on the back of a check, transferring ownership.
23. A computerized cash payments system that transfers funds without the use of checks, currency, or other paper
documents.
24. A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
25. An amount of cash kept on hand and used for making small payments.
26. A bank form listing the checks, currency, and coins that an account holder is adding to the bank account.
27. An endorsement restricting further transfer of a check’s ownership.
28. A petty cash on hand amount that is less than the recorded amount.
29. A check that has been paid by the bank.
30. A check that cannot be processed because the maker has made it invalid.
31. A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
32. An endorsement indicating a new owner of a check.
Name:
Class:
Date:
Name:
Class:
Date: