Accounting 1 Quiz

In accounting, money is usually referred to as cash.

False

Most banks will accept postdated checks.

False

Most businesses make major payments with cash.

False

Separate amounts in general amount columns are not posted individually.

False

Separate amounts in special amount columns are posted individually.

False

The first asset account is numbered 100.

False

The procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting.

False

The two steps for opening an account are writing the account title and recording the balance.

False

When the petty cash fund is replenished, the balance of the petty cash account increases.

False

Ac Account numbers may be assigned by 10s so that new accounts can be added easily.

True

An endorsement consisting only of the endorser's signature is a blank endorsement.

True

An endorsement on a check may be either written or stamped.

True

Banks usually refuse to accept altered checks.

True

Because an account form has columns for the debit and credit balance of an account, it is often referred to as the balance-ruled account form.

True

Because cash transactions occur more frequently than other transactions, the chances for making recording errors affecting cash are less.

True

Opening an account refers to the procedure of writing an account title and number on the heading of an account.

True

The first digit in the account number 120 means that the account is in the ____ division of the general ledger.

asset

A petty cash fund is always replenished ____.

at the end of the month

Check marks are placed in parentheses below the General Debit and Credit column totals to show that ____.

the totals are not posted

The bank statement shows a checking account balance of $5,500.00. There are outstanding checks totaling $600.00, an outstanding deposit of $400.00, and a bank service charge of $15.00. The checking account balance should be ____.

$5,285.00

A new account to be added between accounts 530 and 540 will be assigned the number ____.

535

A business has the following expense accounts: 510, Advertising Expense; 520, Miscellaneous Expense; 530, Repair Expense. A new account titled Utilities Expense is added. The account number for this new account is ____.

540

A bank reconciliation form is prepared by the bank to ensure that the bank has not made mistakes.

False

A journal page number is written in the Post. Ref. column of an account to show that posting of the entry is completed.

False

A journal shows in one place all the changes in a single account.

False

A petty cash fund is used for making large cash payments without writing checks.

False

As petty cash is paid out, the amount in the petty cash box decreases.

False

At the end of a year, accounting departments perform file maintenance by opening new files for the next year's journals and ledgers.

False

A bank requires that the signature of the person authorized to sign checks be on the signature card.

True

A check mark in parentheses below a General Debit column total indicates that the total is not posted.

True

The total of the Cash Debit column is not posted.

True

The total of the Sales Credit column is posted.

True

Using a memorandum as the source document for a dishonored check is an application of the accounting concept Objective Evidence.

True

Using a petty cash fund usually decreases the number of checks that have to be written.

True

Voided checks should be recorded in the journal.

True

When writing a check, the first step is to prepare the check stub.

True

If any kind of error is made in preparing a check, ____.

VOID should be written on the check stub VOID should be written on the check a new check should be prepared ------------ >all of the above

An endorsement on the back of a check consisting only of a signature is ____.

a blank endorsement

Posting references in a journal are ____.

always placed in an account's Post. Ref. column the first item recorded when posting none of the above ---->not necessary

A signature or stamp on the back of a check transferring ownership is ____.

an endorsement

The entry to establish a $200.00 petty cash fund is ____.

debit Petty Cash, $200.00; credit Cash, $200.00

Each time cash or checks are placed in a bank account, the customer prepares a ____.

deposit slip

When accounts are arranged in a general ledger, account numbers are assigned, and the chart of accounts is kept up to date, the accounting personnel are ____.

doing file maintenance

The source document for journalizing a bank service charge is a ____.

memorandum

The source document for journalizing an electronic funds transfer is a ____.

memorandum

If all separate amounts on a journal line are recorded in special amount columns, ____.

neither amount is posted individually

If a check is endorsed on the back with the words "For deposit only," the check can be cashed by ____.

no one--it must be deposited

A business form ordering a bank to pay cash from a bank account is a ____.

none of the above

Separate amounts in the Sales Credit column of a journal are ____.

none of the above

Separate amounts in the Cash Debit column of a journal are ____.

not posted

If posting is interrupted, the accounting personnel know to resume posting ____.

on the line with a blank Post. Ref. column in the journal

A lost check with a blank endorsement on it can be cashed by ____.

only the person who endorsed the check

A form showing proof of a petty cash payment is a ____.

petty cash slip

Separate amounts in the General Debit and General Credit amount columns of a journal are ____.

posted individually

The procedure for transferring information from a journal entry to a ledger account is ____.

posting

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 ____.

special endorsement

An account number in the journal's Post. Ref. column shows ____.

the account to which an amount is posted

The first step in the posting procedure is writing ____.

the entry date in the Date column of the account

The last step in the posting procedure is writing ____.

the journal page number in the Post. Ref. column of the account

A check must be signed with ____.

the same signature as on the signature card