Accounting: Chapter 6

On a bank reconciliation, deposits added to the bank side are called:

Deposits in transit

Deposit in Transit

Deposits that were made by customers of a bank that has not been processed.

Endorsement

How a check is signed on the bank to be cashed.

Bank Reconciliation

The process of making sure the checkbook balance balances with the bank balance given on the bank statement.

the change fund is what type of account?

asset

Cancelled Check

A check that has been processed by a bank and is not longer negotiable.

Change Fund

A fund made of various denominations that are used to make change for customers.

Petty Cash Fund

A fund that allows payments of small amounts without writing checks.

Petty Cash Voucher

A petty cash form to be completed when money is taken out of petty cash.

Bank Statement

A report sent by a bank to a customer indicating the previous balance, checks processed, and deposits received.

what type of an account is the petty cash fund?

Asset

Checks that have been processed by the bank and are no longer negotiable are:

Canceled checks

Outstanding Checks

Checks written by a company that were not received or not processed by the bank the preparation of the bank statement.

Cash Short and Over

The account that records if the cash balance does not equal and indicates shortages or overages.

Cash Short and Over is

a Misc. Exp or Misc. Revenue account depending on the balance in the account.

The bank statement included bank charges. On the bank reconciliation, the item is:

a deduction from the balance per company books.

An example of electronic funds transfer is:

a transfer of funds without the use of paper checks.

Bank interest earned on a checking account would be shown on a bank reconciliation as:

added to the balance per books.

Which of the following bank reconciliation items would be reflected in a journal entry?

bank service charge

The drawee is the:

bank that drawer has an account with.

A blank endorsement on a check:

can be further endorsed by someone else.

a $50 petty cash fund has cash $20 and valid receipts for $40. The entry to replenish the fund would include a:

credit to Cash for $30

A company would use a change fund if :

there are cash transactions daily.

A petty cash fund is set up:

to pay for small expenses

Endorsing a check:

transfers the right to deposit or transfer cash.