Accounting Chapters 4 and 5
checking account
a bank account from which payments can be ordered by a depositor
debit card
a bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder
true
a bank requires that the signature of the person authorized to sign checks be on the signature card
dishonored check
a check that a bank refuses to pay
true
a check with a blank endorsement can be cashed by anyone who has the check
postdated check
a check with a future date on it
electronic transfer funds
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
petty cash slip
a form showing proof of a petty cash payment
true
a group of accounts is called a ledger
false
a journal page number is written in the Post Ref. column of an account to show that posting of the entry is complete
false
a journal shows in one place all the changes in a single account
anyone who has the check
a lost check with a blank endorsement on it can be cashed by
bank statement
a report of deposits, withdrawals, and bank balances sent to a depositor by a bank
endorsement
a signature or stamp on the back of a check transferring ownership
code of conduct
a statement that guides the ethical behavior of a company and its employees
true
account numbers may be assigned by 10s so that new accounts may be added easily
petty cash
an amount of cash kept on hand and used for making small payments
blank endorsement
an endorsement consisting only of the endorser's signature
special endorsement
an endorsement indicating a new owner of a check
special endorsement
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
restrictive endorsement
an endorsement on the back of a check indicating that the check is to accepted for deposit only is a
a blank endorsement
an endorsement on the back of check consisting only of a signature is
restrictive endorsement
an endorsement restricting further transfer of a check's ownership
true
an outstanding check is one that has been issued but not yet reported on a bank statement by the bank
deposit slip
each time cash or checks are placed in a bank account, the customer prepares a
true
if a business has only two asset accounts, Cash and Supplies, the two accounts are numbered 110 and 120
true
if the previous account balance and the current entry posted to an account are both debits, the new account balance is debit
false
ownership of a check cannot be transferred
true
the account number is placed in the Post. Ref. column of the journal as the last step in the posting procedure
false
the cash account is the first asset account and is numbered 100
false
the only reason for the Post. Ref. columns of the general journal and the general ledger is to indicate which entries in the journal still need to be posted is posting is interrupted
false
the petty cash fund is a liability with a normal debit balance
false
the posting reference should always be recorded in the journal's Post. Ref. column before amounts are recorded in the ledger
false
the procedure of arranging accounts in a general ledger, assigning account numbers, and keeping records current is posting
true
the source document for a debit card purchase is a memorandum
true
the source document for an electronic funds transfer is a memorandum
false
the steps for posting are to write the date, journal page number, amount and balance
false
the two steps for opening an account are writing the account title and recording the balance
true
using a memorandum as the source document for a dishonored check is an application of the accounting concept Objective Evidence
true
voided checks should be recorded in the journal
true
when adding a new expense account between accounts numbered 510 and 520, the new account is assigned the account number 515
true
when all the posting is completed, the journal's Post. Ref. column is completely filled
false
when petty cash is replenished, Petty Cash is debited and Cash is credited
