True/False
Indicate whether the statement is true or
false.
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1.
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No journalized entry is needed for deposits.
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2.
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Ownership of a check can be transferred only once.
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3.
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Checks are listed on a deposit slip in amount order from least to
greatest.
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4.
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The endorser provides no guarantee of the payment of the check.
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5.
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A bank's service charge is billed to the business; the entry before it is
paid is a debit to miscellaneous expense and a credit to accounts payable.
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6.
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Many businesses have a stamp prepared with a restrictive endorsement so that the
check is immediately endorsed upon receipt.
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7.
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A journal entry must be made for each individual petty cash purchase. The petty
cash slips are used for this purpose.
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8.
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A bank card that automatically deducts the amount of a purchase from the
checking account of the cardholder is called a debit card.
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9.
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The maximum the IRS will allow for a petty cash account is $100.00.
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10.
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Few businesses use electronic funds transfer to pay vendors.
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Matching
Use the word list provided below. Not all words will be
used; some may be used multiple times. Copy and paste from the list. Misspellings will be counted as
incorrect.
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A. | list off all the accounts a business owns | G. | code of
ethics | B. | bank statement | H. | postdated check | C. | proving a
five-column journal | I. | according to the bank routing number on each | D. | blank
endorsement | J. | outstanding
check | E. | checking account | K. | the signatures of the payee and the endorser do not match | F. | at the time cash is
received | L. | outstanding
check |
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1.
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A check with a future date on it is called a ____.
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2.
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Cash receipts are journalized ____.
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3.
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A check that is recorded in the depositor's records but not on the bank
statement is called a(n) ____.
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4.
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A bank account from which payments can be ordered by a depositor is called a
____.
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5.
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A report of deposits, withdrawals, and bank balances sent to a depositor by a
bank is called a ____.
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6.
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A statement that guides the ethical behavior of a company and its employees is
called a(n) ____.
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7.
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When you sign only your name to the back of a check it is known as a(n)
____.
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8.
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A check may be dishonored because ____.
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