Accounting ch 5

An endorsement consisting of only the endorser signature is called a

Blank endorsement

What are the three types of endorsements?

Blank, special, and restrictive

What account is credited one and EFT is used to pay cash on account?

Cash

When using EFTs blank is credited

Cash

A business form for ordering a bank to pay cash from a bank account is known as

Check

Five reasons why banks will dishonor a check

Check appeared altered Signature on check doesn't match one on signature card at the bank Amounts written figures in words don't agree Check is postdated Person who wrote the check has stopped payment on the check

A bank service charge must also be recorded in the next unused blank

Check stub ?

True or false... Because cash transactions occur more frequently than other transactions, the chances for making recording air is affecting cash or less

False they are more

Most banks charge a blank for a dishonored check

Fee

When writing a restrictive endorsement what do you write ?

For deposit only to the account of and write the account name and your signature

Issuing a check with insufficient funds is

Illegal

If a mistake on the check is made, it must be ____ and recorded in the checkbook

Marked Void

The source document for an EFT transaction is

Memorandum

When journalizing a bank service charge what are you debit and credit

New debit miscellaneous expense and credit cash

When writing a special endorsement ,what do you write?

Pay to the order of the person and write your signature

An amount of cash on hand for making small payments is called

Petty cash

Paid cash to establish a petty cash fun, $300.

Petty cash debit and cash credit at both for $300

To establish the petty cash fund, blank is debited and blank is credited

Petty cash is debit and cash is credited

Seven things a petty cash slip has

Petty cash slip number Date of petty cash payment To whom paid Reason for payment Amount paid Account in which amount is to be recorded Signature person approving the petty cash payment

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

True

An important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement

True

And outstanding check is one that has been issued by depositor but not yet reported on a bank statement by the bank

True

Any time a payment is made for the petty cash fund, petty cash slip is prepared showing proof of the petty cash payment

True

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

True

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

True

The source document for a debit card purchases a memorandum

True

The source document for electronics funds transfer is a memorandum

True

When a deposit is made in a bank account, the bank issues a receipt.

True

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

True

The amount of a check is written twice on each check

True?

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

endorsement

A form showing proof of a petty cash payment is called

petty cash slip

A check with a future date on it is called a

postdated check

An endorsement indicating a new owner of a check is called a

special endorsement

A bank statement is reconciled by verifying that the information on the bank statement in the checkbook blank

Are in agreement

A report of deposits, with drawls, and bank balances sent you a deposit or by bank is called a

Bank statement

List the four things a banks records and a deposit or his records may differ in

1) a service charge may not have been recorded in the depositors business records 2)Outstanding deposits maybe recorded in the depositors records but not on a bank statement 2)Outstanding checks may be recorded in the depositors records but not on a bank statement 3)A depositor may have made math or recording errors

Define: Debit Card

A bank card that automatically deduct the amount of the purchase from the checking account of the card holder

Define code of conduct

A statement that guides the ethical behavior of a company and its employees

Paid cash on account to read Rossman, $289, using EFT. Memorandum number 334

Accounts payable read Rossman debited and cash credited both for $289

When I check is dishonored, blank is debited blank is credited

Accounts receivable is debited while cash is credited

What would you debit and credit for these examples? Receive notice from the bank of a dishonored check from Ralston eubanks, $125 ,plus $30 fee ;total 155 memorandum number 333

Debit accounts receivable are and credit cash for 155 both

The bank service charge must also be journalize by debiting blank and crediting blank

Debiting miscellaneous expense and creditomg cash

A bank customer must prepare a blank each time they would like to put money into the bank account

Deposit slip

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

Electronic Funds Transfer

An endorser should sign blank how their name is written on the check

Exactly

When petty cash is replenished, blank is debited a blank is credited

Expenses is debit and cash is credited

Most banks do not look at the date the check is written and will withdraw money from the deposit account anytime

False

Techno consulting maintains a petty cash fund for making a large cash payment without writing checks

False

A memorandum is the source document for the entry to record establishing a petty cash fund

False (check)

An endorsement restricting further transfer of a checks ownership is called a

Restrictive endorsement

When a bank account is opened , the bank customer must provide their blank for identification purposes on the signature card

Signature

Why do businesses use petty cash fund?

So that they can use instead of writing a check for a small amount

Purchase supplies, $54, using a debit card. Member random number 335

Supplies credit and cash debit it for $54 each

Paid cash replenish the petty cash fund, $165: supplies, $57: miscellaneous expense, $58: repairs, $40: postage, $10

Supplies miscellaneous repairs and postage expense is debited for cash is credited. Cash is credited for $165. Supplies is debited for $57, miscellaneous his tablet for $58, repairs is debited for $40, and postage expense is debited $10,

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

Trail

What are the steps of preparing a check stub?

Write the amount of the check, write the date of the check, right to him the check is to be paid to, record the purpose of the check, write the amount of the check in the amount column, and calculate the new checking account balance and record it in the amount column.

What are the steps for preparing a check?

Write the date, right to him the check is to be paid, write the amount of figures following the $, read the amount in words, And read the purpose of the check, and signed the check

Journalizing electronics funds transfer what are you debit credit

Your debit accounts payable and credit cash

When journalizing a dishonored check what are you debit and credit

Your debit accounts receivable and credit cash

When journalizing a debit card transaction what are you debit and credit

Your debit supplies and credit cash

When writing a blank Endorsement, what do you write?

Your signature

What account is credited when a debit card is used to purchase supplies?

cash

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

checking account

A check that a bank refuses to pay is called a

dishonored check