FREE AND STUDY GAMES ABOUT CHAPTER 5

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FREE AND STUDY GAMES ABOUT CHAPTER 5

ACCOUNTING EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -38 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: True

Answer:

Banks deduct service charges from customers' checking accounts without requiring customers to write a check for the amount

Question 2: True

Answer:

There are three types of endorsements commonly used: blank, special, and restrictive

Question 3: Postdated Check

Answer:

A check with a future date on it

Question 4: False

Answer:

An outstanding check is one that has not yet been issued (Correct Answer. - Outstanding checks are those checks issued by a depositor but not yet reported on a banks statement)

Question 5: True

Answer:

A check with a blank endorsement can be cashed by anyone who has possession of the check

Question 6: Endorsement

Answer:

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

Question 7: NSF Check

Answer:

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

Question 8: False

Answer:

A memorandum is the source document for the entry to record replenishing the petty cash fund (Correct Answer. - Check)

Question 9: Bank Statement

Answer:

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

Question 10: Canceled Check

Answer:

A check which has been paid by the bank

Question 11: True

Answer:

The purpose of a petty cash fund is to make smal cash payments without writing checks

Question 12: Cash Short

Answer:

A petty cash on hand amount that is less than a recorded amount

Question 13: False

Answer:

The source document for an electronic funds transfer is a check number (Correct Answer. - Memorandum)

Question 14: Debit Card

Answer:

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

Question 15: True

Answer:

Not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account as well

Question 16: Voided Check

Answer:

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

Question 17: False

Answer:

A petty cash report is completed at the end of each business day (Correct Answer. - Monthly)

Question 18: Dishonored Check

Answer:

A check that a bank refuses to pay

Question 19: True

Answer:

The amount of a check is written twice on each check

Question 20: Special Endorsement

Answer:

An endorsement indicating a new owner of a check

Question 21: True

Answer:

The source document for a debit card purchase is a memorandum

Question 22: True

Answer:

Businesses use petty cash when writing a check is not time or cost effective

Question 23: Cash Over

Answer:

A petty cash on hand amount that is more than a recorded amount

Question 24: Blank Endorsement

Answer:

An endorsement consisting only of the endorser's signature

Question 25: Petty Cash Slip

Answer:

A form showing proof of a petty cash payment

Question 26: False

Answer:

When a deposit is made in a bank account, the bank issues a check (Correct Answer. - receipt)

Question 27: False

Answer:

Most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime (Correct Answer. - Won't cash future checks)

Question 28: True

Answer:

Because cash transactions occur more frequently than other transactions, there is more chance for making recording errors affecting cash