Chapter 5 True/False

False

The petty cash fund is a liability with a normal debit balance.

True

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

True

The source document for an electronic funds transfer is a memorandum

True

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

True

Voted checks should be recorded in the journal.

False

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

False

Ownership of a check cannot be transferred.

False

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

True

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

True

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