Deck 5: Cash Control Systems

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Voided checks should be recorded in the journal.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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.

Question 7

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.

Question 8

Cash Short and Over is classified as a(n)

A) asset.
B) liability.
C) expense.
D) equity.

Question 9

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.

Question 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.
C) debit Miscellaneous Expense, $200. 00; credit Cash, $200. 00.
D) debit Petty Cash, $200. 00; credit Cash, $200. 00.

Question 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.

Question 12

A petty cash fund is always replenished

A) daily.
B) weekly.
C) at the end of the month.
D) none of these.

Question 13

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.

Question 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.

Question 15

Select the one term that best fits each definition

-A check that a bank refuses to pay.

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

Question 16

Select the one term that best fits each definition

-A check with a future date on it.

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

Question 17

Select the one term that best fits each definition

-A form showing proof of a petty cash payment.

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

Question 18

Select the one term that best fits each definition

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

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

Question 19

Select the one term that best fits each definition

-An endorsement consisting only of the endorser's signature.

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

Question 20

Select the one term that best fits each definition

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

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

Question 21

Select the one term that best fits each definition

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

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

Question 22

Select the one term that best fits each definition

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

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

Question 23

Select the one term that best fits each definition

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

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

Question 24

Select the one term that best fits each definition

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

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

Question 25

Select the one term that best fits each definition

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

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

Question 26

Select the one term that best fits each definition

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

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

Question 27

Select the one term that best fits each definition

-An endorsement restricting further transfer of a check's ownership.

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

Question 28

Select the one term that best fits each definition

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

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

Question 29

Select the one term that best fits each definition

-A check that has been paid by the bank.

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

Question 30

Select the one term that best fits each definition

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

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

Question 31

Select the one term that best fits each definition

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

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

Question 32

Select the one term that best fits each definition

-An endorsement indicating a new owner of a check.

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