Question 1

A restrictive endorsement means that the check is payable to any bearer.

Accepted Answer

A) True 
 B)False  False

Question 2

A check involves three parties. The person who orders the bank to pay a certain amount of money is called the

Accepted Answer

A)  drawer. 
B)  drawee. 
C)  payee. 
D)  endorser. 
A)  drawer. 
B)  drawee. 
C)  payee. 
D)  endorser. A

Question 3

The process of bringing the book and the bank balance into agreement is called

Accepted Answer

A)  reconciling the bank statement. 
B)  proving the cash. 
C)  preparing a statement of payment. 
D)  preparing a statement of disbursements. 
A)  reconciling the bank statement. 
B)  proving the cash. 
C)  preparing a statement of payment. 
D)  preparing a statement of disbursements. A

Question 4

Once an entry is made to establish a change fund, no other entries are made to this account.

Accepted Answer

A) True 
 B)False

Question 5

A special form of receipt showing the name of the payee, the purpose of the payment, and the account to be charged for each petty cash payment is known as a

Accepted Answer

A)  petty cash voucher. 
B)  petty cash check. 
C)  petty cash document. 
D)  petty cash register. 
A)  petty cash voucher. 
B)  petty cash check. 
C)  petty cash document. 
D)  petty cash register.

Question 6

Match the terms with the definitions.
-A set of procedures designed to ensure proper accounting for transactions. (Appendix)

Accepted Answer

A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos 
A) outstanding checks 
B) cash 
C) petty cash voucher 
D) automated teller machines 
E) change fund
F)internal control
G)credit memos
H)debit memos

Question 7

If the depositor's book balance is not the same as the bank's book balance, an error has occurred.

Accepted Answer

A) True 
 B)False

Question 8

Cash receipts of $719 and a cash count of $715 would indicate a cash overage.

Accepted Answer

A) True 
 B)False

Question 9

Check No. 450, a payment of $54 for the telephone bill, was incorrectly entered on the check stub as $45. Which of the following adjustments needs to be made?

Accepted Answer

A)  increase the bank statement balance 
B)  increase the book balance 
C)  decrease the bank statement balance 
D)  decrease the book balance 
A)  increase the bank statement balance 
B)  increase the book balance 
C)  decrease the bank statement balance 
D)  decrease the book balance

Question 10

Match the terms with the definitions.
-An endorsement where the depositor simply signs the back of the check, making the check payable to any bearer.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 11

Cash Sales from the cash register tapes totaled $882. There is a change fund of $100. The cash count indicates that $984 is in the cash drawer. What journal entry would be required?

Accepted Answer

A)  debit Miscellaneous Expense for $2; credit Cash Short and Over for $2 
B)  debit Cash for $982, Cash Short and Over for $2; credit Revenues for $984 
C)  debit Cash Short and Over for $2; credit Miscellaneous Expense $2 
D)  debit Cash for $884; credit Revenues for $882, and Cash Short and Over for $2 
A)  debit Miscellaneous Expense for $2; credit Cash Short and Over for $2 
B)  debit Cash for $982, Cash Short and Over for $2; credit Revenues for $984 
C)  debit Cash Short and Over for $2; credit Miscellaneous Expense $2 
D)  debit Cash for $884; credit Revenues for $882, and Cash Short and Over for $2

Question 12

Match the terms with the definitions.
-An endorsement where the depositor adds words such as "For deposit" to restrict the payment of the check.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 13

Match the terms with the definitions.
-A statement of account issued by a bank to each depositor once a month.

Accepted Answer

A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code 
A) restrictive endorsement 
B) bank reconciliation 
C) bank statement 
D) blank endorsement 
E) canceled checks
F)petty cash fund
G)payee
H)check
I)check stub
J)petty cash payments record
K)NSF checks
L)deposit ticket
M)deposits in transit
N)drawee
O)drawer
P)electronic funds transfer
Q)endorsement
R)magnetic ink character recognition code

Question 14

To sign the back of a check with the name of the company and "Pay to any bank" is an example of a

Accepted Answer

A)  restrictive endorsement. 
B)  signature card. 
C)  blank endorsement. 
D)  canceled check. 
A)  restrictive endorsement. 
B)  signature card. 
C)  blank endorsement. 
D)  canceled check.

Question 15

If the person who is named as payee on a check transfers the right to receive the money by signing his/her name on the back of the check, the signature is called a

Accepted Answer

A)  restrictive endorsement. 
B)  dishonored endorsement. 
C)  regular endorsement. 
D)  blank endorsement. 
A)  restrictive endorsement. 
B)  dishonored endorsement. 
C)  regular endorsement. 
D)  blank endorsement.

Question 16

A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.

Accepted Answer

A) True 
 B)False

Question 17

The term "cash" has several different meanings.

Accepted Answer

A) True 
 B)False

Question 18

If, in the effort to prove cash, a shortage is found, the amount is treated as a(n)

Accepted Answer

A)  cash receipts transaction. 
B)  petty cash transaction. 
C)  revenue earned transaction. 
D)  expense. 
A)  cash receipts transaction. 
B)  petty cash transaction. 
C)  revenue earned transaction. 
D)  expense.

Question 19

A debit to Accounts Receivable for $50 and a credit to Cash for $50 would be an accurate journal entry to record

Accepted Answer

A)  electronic funds transfers (EFTs). 
B)  not sufficient funds (NSF) checks. 
C)  petty cash. 
D)  ATM deposits. 
A)  electronic funds transfers (EFTs). 
B)  not sufficient funds (NSF) checks. 
C)  petty cash. 
D)  ATM deposits.

Question 20

To reconcile the bank statement, which of the following amounts would be subtracted from the checkbook balance?

Accepted Answer

A)  service charge 
B)  outstanding checks 
C)  deposits in transit 
D)  amounts collected by the bank for the depositor's account 
A)  service charge 
B)  outstanding checks 
C)  deposits in transit 
D)  amounts collected by the bank for the depositor's account

Exam 7: Accounting for Cash

A restrictive endorsement means that the check is payable to any bearer.

A check involves three parties. The person who orders the bank to pay a certain amount of money is called the

The process of bringing the book and the bank balance into agreement is called

Once an entry is made to establish a change fund, no other entries are made to this account.

A special form of receipt showing the name of the payee, the purpose of the payment, and the account to be charged for each petty cash payment is known as a

Match the terms with the definitions. -A set of procedures designed to ensure proper accounting for transactions. (Appendix)

If the depositor's book balance is not the same as the bank's book balance, an error has occurred.

Cash receipts of $719 and a cash count of $715 would indicate a cash overage.

Check No. 450, a payment of $54 for the telephone bill, was incorrectly entered on the check stub as $45. Which of the following adjustments needs to be made?

Match the terms with the definitions. -An endorsement where the depositor simply signs the back of the check, making the check payable to any bearer.

Cash Sales from the cash register tapes totaled $882. There is a change fund of $100. The cash count indicates that $984 is in the cash drawer. What journal entry would be required?

Match the terms with the definitions. -An endorsement where the depositor adds words such as "For deposit" to restrict the payment of the check.

Match the terms with the definitions. -A statement of account issued by a bank to each depositor once a month.

To sign the back of a check with the name of the company and "Pay to any bank" is an example of a

If the person who is named as payee on a check transfers the right to receive the money by signing his/her name on the back of the check, the signature is called a

A cash shortage is entered as a debit to Cash Short and Over and a credit to Cash.

The term "cash" has several different meanings.

If, in the effort to prove cash, a shortage is found, the amount is treated as a(n)

A debit to Accounts Receivable for $50 and a credit to Cash for $50 would be an accurate journal entry to record

To reconcile the bank statement, which of the following amounts would be subtracted from the checkbook balance?

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Job Order Cost System

Manufacturing Accounting: The Work Sheet and Financial Statements

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