Question 1

The __________________ is used by a business to make change for customers who pay cash for goods or services.

Accepted Answer

A)  petty cash fund 
B)  cash fund 
C)  change fund 
D)  none of the answers listed 
A)  petty cash fund 
B)  cash fund 
C)  change fund 
D)  none of the answers listed C

Question 2

When a Petty Cash Fund is established, Cash is debited and Petty Cash Fund is credited.

Accepted Answer

A) True 
 B)False  False

Question 3

The amount of the Petty Cash Fund should be included on the bank reconciliation as

Accepted Answer

A)  an addition to the book balance of cash. 
B)  an addition to the bank statement balance. 
C)  a deduction from the bank statement balance. 
D)  a part of a late deposit. 
E)  The Petty Cash Fund is not included on the bank reconciliation. 
A)  an addition to the book balance of cash. 
B)  an addition to the bank statement balance. 
C)  a deduction from the bank statement balance. 
D)  a part of a late deposit. 
E)  The Petty Cash Fund is not included on the bank reconciliation. E

Question 4

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

Accepted Answer

A) True 
 B)False

Question 5

A __________________ is a record indicating the amount of each petty cash voucher, the accounts to which it should be charged, and the purpose of the expenditure.

Accepted Answer

A)  petty cash fund 
B)  signature card 
C)  petty cash payments record 
D)  none of the answers listed 
A)  petty cash fund 
B)  signature card 
C)  petty cash payments record 
D)  none of the answers listed

Question 6

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

Accepted Answer

A) True 
 B)False

Question 7

A special fund maintained to pay relatively small amounts for expenses, assets, or withdrawals is called a Petty Cash Fund.

Accepted Answer

A) True 
 B)False

Question 8

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Accepted Answer

A)  debit to Cash. 
B)  debit to Debit Memo. 
C)  debit to Miscellaneous Expense. 
D)  none of the answers listed. 
A)  debit to Cash. 
B)  debit to Debit Memo. 
C)  debit to Miscellaneous Expense. 
D)  none of the answers listed.

Question 9

Match the terms below with the correct definitions.
-A record indicating the amount of each petty cash voucher

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

Question 10

In a bank reconciliation, a $400 NSF check is

Accepted Answer

A)  deducted from the ledger balance. 
B)  added to the ledger balance. 
C)  deducted from the bank balance. 
D)  added to the bank balance. 
E)  ignored. 
A)  deducted from the ledger balance. 
B)  added to the ledger balance. 
C)  deducted from the bank balance. 
D)  added to the bank balance. 
E)  ignored.

Question 11

Which of the following would be added to the bank statement balance of cash?

Accepted Answer

A)  Note collected by bank 
B)  Service charges 
C)  Deposits in transit 
D)  Outstanding checks 
E)  NSF checks 
A)  Note collected by bank 
B)  Service charges 
C)  Deposits in transit 
D)  Outstanding checks 
E)  NSF checks

Question 12

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Accepted Answer

A)  Debit Cash, $345; credit Sales, $345 
B)  Debit Cash, $443; credit Sales, $443 
C)  Debit Cash, $443; credit Cash Short and Over, $98; credit Sales, $345 
D)  Debit Cash, $343; debit Change Fund, $100; credit Sales, $443 
E)  Debit Cash, $343; debit Cash Short and Over $2; credit Sales $345 
A)  Debit Cash, $345; credit Sales, $345 
B)  Debit Cash, $443; credit Sales, $443 
C)  Debit Cash, $443; credit Cash Short and Over, $98; credit Sales, $345 
D)  Debit Cash, $343; debit Change Fund, $100; credit Sales, $443 
E)  Debit Cash, $343; debit Cash Short and Over $2; credit Sales $345

Question 13

Which of the following statements is true about a debit balance in a Change Fund?

Accepted Answer

A)  It is classified as a revenue account and is recorded on the income statement. 
B)  It is classified as an asset and is recorded on the balance sheet. 
C)  It is classified as a miscellaneous expense and is recorded on the income statement. 
D)  It is classified as a liability and is recorded on the balance sheet. 
E)  It is classified as owner's equity and is recorded on the balance sheet. 
A)  It is classified as a revenue account and is recorded on the income statement. 
B)  It is classified as an asset and is recorded on the balance sheet. 
C)  It is classified as a miscellaneous expense and is recorded on the income statement. 
D)  It is classified as a liability and is recorded on the balance sheet. 
E)  It is classified as owner's equity and is recorded on the balance sheet.

Question 14

Kohen Co. establishes a Petty Cash Fund of $100. During the month, Kohen Co. made the following payments from its Petty Cash Fund: Bought pencils and pens, $15.00
Paid postage on packages, $12.00
S. Kohen, the owner, withdrew $45.00 for personal use.
The journal entry to reimburse the fund would be:

Accepted Answer

A) 
$\begin{array} { l c } 
\text { Petty Cash Fund } & \$ 72 \
\text { Cash } & \$ 72
\end{array}$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \$ 28 \
\text { Petty Cash Fund } & \$ 28
\end{array}$ 
C)  
$\begin{array} { l c } 
\text { Supplies } & \$ 15 \
\text { Miscellaneous Expense } & \$ 12 \
\text { S. Kohen, Drawing } & \$ 45 \
\text { Cash } & \$ 72
\end{array}$ 
D) 
$\begin{array} { l r } 
\text { Supplies } & \$ 15 \
\text { Miscellaneous Expense } & \$ 12 \
\text { S. Kohen, Drawing } & \$ 45 \
\text { Petty Cash Fund } & \$ 72
\end{array}$ 
A) 
$\begin{array} { l c } 
\text { Petty Cash Fund } & \$ 72 \
\text { Cash } & \$ 72
\end{array}$ 
B)  
$\begin{array} { l l } 
\text { Cash } & \$ 28 \
\text { Petty Cash Fund } & \$ 28
\end{array}$ 
C)  
$\begin{array} { l c } 
\text { Supplies } & \$ 15 \
\text { Miscellaneous Expense } & \$ 12 \
\text { S. Kohen, Drawing } & \$ 45 \
\text { Cash } & \$ 72
\end{array}$ 
D) 
$\begin{array} { l r } 
\text { Supplies } & \$ 15 \
\text { Miscellaneous Expense } & \$ 12 \
\text { S. Kohen, Drawing } & \$ 45 \
\text { Petty Cash Fund } & \$ 72
\end{array}$

Question 15

Which data are generally not included on a check?

Accepted Answer

A)  Date of the check 
B)  Signature of the party writing the check 
C)  Address of the payee 
D)  Amount the bank is to pay the payee 
E)  Name of the bank on which the check was drawn 
A)  Date of the check 
B)  Signature of the party writing the check 
C)  Address of the payee 
D)  Amount the bank is to pay the payee 
E)  Name of the bank on which the check was drawn

Question 16

Match the terms below with the correct definitions.
-Bank form listing all items being deposited

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

Question 17

Match the terms below with the correct definitions.
-A form stating who took money from the Petty Cash Fund and for what use

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

Question 18

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

Accepted Answer

A)  credit to Cash for $269. 
B)  debit to Petty Cash Fund for $269. 
C)  debit to various expenses for $31. 
D)  credit to Petty Cash Fund for $269. 
E)  credit to various expenses for $269. 
A)  credit to Cash for $269. 
B)  debit to Petty Cash Fund for $269. 
C)  debit to various expenses for $31. 
D)  credit to Petty Cash Fund for $269. 
E)  credit to various expenses for $269.

Question 19

Frank Delivery Services establishes a Change Fund of $100. At the end of the day, Frank Delivery Services had $1,230 on hand. The journal entry to record the day's receipts would include a

Accepted Answer

A)  debit to Change Fund. 
B)  credit to Income from Services. 
C)  debit to Petty Cash Fund. 
D)  none of the answers listed. 
A)  debit to Change Fund. 
B)  credit to Income from Services. 
C)  debit to Petty Cash Fund. 
D)  none of the answers listed.

Question 20

Match the terms below with the correct definitions.
-Cash fund used for making change for customers

Accepted Answer

A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher 
A) Petty Cash Fund 
B) Bank routing number 
C) Canceled checks 
D) Positive pay 
E) Payee
F)Petty cash payments record
G)Deposit slip
H)Endorsement
I)Change Fund
J)Petty cash voucher

The __________________ is used by a business to make change for customers who pay cash for goods or services.

When a Petty Cash Fund is established, Cash is debited and Petty Cash Fund is credited.

The amount of the Petty Cash Fund should be included on the bank reconciliation as

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

A __________________ is a record indicating the amount of each petty cash voucher, the accounts to which it should be charged, and the purpose of the expenditure.

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

A special fund maintained to pay relatively small amounts for expenses, assets, or withdrawals is called a Petty Cash Fund.

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Match the terms below with the correct definitions. -A record indicating the amount of each petty cash voucher

In a bank reconciliation, a $400 NSF check is

Which of the following would be added to the bank statement balance of cash?

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Which of the following statements is true about a debit balance in a Change Fund?

Kohen Co. establishes a Petty Cash Fund of $100. During the month, Kohen Co. made the following payments from its Petty Cash Fund: Bought pencils and pens, $15.00 Paid postage on packages, $12.00 S. Kohen, the owner, withdrew $45.00 for personal use. The journal entry to reimburse the fund would be:

Which data are generally not included on a check?

Match the terms below with the correct definitions. -Bank form listing all items being deposited

Match the terms below with the correct definitions. -A form stating who took money from the Petty Cash Fund and for what use

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

Frank Delivery Services establishes a Change Fund of $100. At the end of the day, Frank Delivery Services had $1,230 on hand. The journal entry to record the day's receipts would include a

Match the terms below with the correct definitions. -Cash fund used for making change for customers

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters

Exam 6: Bank Accounts, Cash Funds, and Internal Controls

The __________________ is used by a business to make change for customers who pay cash for goods or services.

When a Petty Cash Fund is established, Cash is debited and Petty Cash Fund is credited.

The amount of the Petty Cash Fund should be included on the bank reconciliation as

An NSF check is a check issued by the writer for which there are not sufficient funds in the bank.

A __________________ is a record indicating the amount of each petty cash voucher, the accounts to which it should be charged, and the purpose of the expenditure.

Entries are made to the Petty Cash Fund account only when the fund is first established, when it is changed in size, or when it is abolished.

A special fund maintained to pay relatively small amounts for expenses, assets, or withdrawals is called a Petty Cash Fund.

The bank reconciliation for Lahiri Co. shows a $30 debit memo for service charges. The journal entry to record this item would involve a

Match the terms below with the correct definitions. -A record indicating the amount of each petty cash voucher

In a bank reconciliation, a $400 NSF check is

Which of the following would be added to the bank statement balance of cash?

At the end of the day, $443 in cash is in the register, and the amount of the Change Fund is $100. If the cash register tape indicates $345, which of the following journal entries should be made?

Which of the following statements is true about a debit balance in a Change Fund?

Which data are generally not included on a check?

Match the terms below with the correct definitions. -Bank form listing all items being deposited

Match the terms below with the correct definitions. -A form stating who took money from the Petty Cash Fund and for what use

A Petty Cash Fund established with a $300 balance had petty cash receipts totaling $269 and cash in the amount of $31. The entry to replenish the fund would include a

Frank Delivery Services establishes a Change Fund of $100. At the end of the day, Frank Delivery Services had $1,230 on hand. The journal entry to record the day's receipts would include a

Match the terms below with the correct definitions. -Cash fund used for making change for customers

Asset, Liability, Owners Equity, Revenue, and Expense Accounts

T Accounts, Debits and Credits, Trial Balance, and Financial Statements

The General Journal and the General Ledger

Adjusting Entries and the Work Sheet

Closing Entries and the Post-Closing Trial Balance

Employee Earnings and Deductions

Employer Taxes, Payments, and Reports

Sales and Purchases

Cash Receipts and Cash Payments

Work Sheet and Adjusting Entries

Financial Statements, Closing Entries, and Reversing Entries

Methods of Depreciation

Bad Debts

Inventory Methods

Notes Receivablenotes Payable

Filters