Accounting Ch. 5

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

debit card

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

non-sufficient funds

An amount of cash kept on hand and used for making small payments.

petty cash

A form showing proof of a petty cash payment.

petty cash slip

A check with a future date on it.

postdated check

An endorsement restricting further transfer of a check's ownership.

restrictive endorsement

An endorsement indicating a new owner of a check.

special endorsement

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

true

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

true

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

voided check

A lost check with a blank endorsement on it can be cashed by (A) anyone who has the check. (B) only the person whose name follows the words "Pay to the order of." (C) only the person who endorsed the check. (D) no one.

a

When cash is short, the entry to replenish petty cash includes a (A) debit to Cash Short and Over. (B) credit to Cash Short and Over. (C) debit to Petty Cash. (D) credit to Miscellaneous Expense.

a

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 (A) blank endorsement. (B) special endorsement. (C) restrictive endorsement. (D) deposit endorsement.

b

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

bank statement

An endorsement consisting only of the endorser's signature.

blank endorsement

A petty cash fund is always replenished (A) daily. (B) weekly. (C) at the end of the month. (D) none of these.

c

An endorsement on the back of a check indicating that the check is to be accepted for deposit only is a (A) blank endorsement. (B) special endorsement. (C) restrictive endorsement. (D) deposit endorsement.

c

Cash Short and Over is classified as a(n) (A) asset. (B) liability. (C) expense. (D) equity.

c

Each time cash or checks are placed in a bank account, the customer prepares a (A) signature card. (B) check. (C) deposit slip. (D) none of these.

c

A check that has been paid by the bank.

canceled check

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

cash over

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

cash short

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

checking account

A bank form that lists the checks, currency, and coins an account holder is adding to the bank account.

deposit slip

A check that a bank refused to pay.

dishonored check

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

electronic funds transfer

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

endorsement

Ownership of a check cannot be transferred.

false

The source document for a debit card purchase is a purchase invoice.

false

When petty cash is replenished, Petty Cash is debited and Cash is credited.

false

If any kind of error is made in preparing a check, (A) VOID should be written on the check. (B) VOID should be written on the check stub. (C) a new check should be prepared. (D) all of the above.

d

The entry to establish a $200.00 petty cash fund is (A) debit Petty Cash, $200.00; credit Miscellaneous Expense, $200.00. (B) debit Cash, $200.00; credit Petty Cash, $200.00. (C) debit Miscellaneous Expense, $200.00; credit Cash, $200.00. (D) debit Petty Cash, $200.00; credit Cash, $200.00.

d