Accounting IA Chapter 5

1.

1 point

A statement that guides the ethical behavior of a company and its employees.

behavior statement

code of conduct

company employee statement

ethical statement

2.

1 point

Ownership of a check cannot be transferred.

True

False

3.

1 point

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

savings account

check card

checking account

deposit account

4.

1 point

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

special endorsement

blank endorsement

restrictive endorsement

endorsement

5.

1 point

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

True

False

6.

1 point

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

True

False

7.

1 point

The source document for an electronic funds transfer is a memorandum.

True

False

8.

1 point

Voided checks should be recorded in the journal.

True

False

9.

1 point

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

True

False

10.

1 point

An endorsement consisting only of the endorser's signature.

bank endorsement

special endorsement

restrictive endorsement

blank endorsement

11.

1 point

A form showing proof of a petty cash payment.

petty cash payment card

petty card

petty cash

petty cash slip

12.

1 point

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

bank statement

checking account

debit card

blank statement

13.

1 point

A check with a future date on it.

postdated check

later-dated check

future check

checking account

14.

1 point

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

petty cash

petty cash slip

petty cash fund

petty check

15.

1 point

A check that a bank refuses to pay.

refused check

dishonored check

hot check

no pay check

16.

1 point

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

electronic funds transfer

transfer funds electronically

funds electronic transfer

electronic transfer funds

17.

1 point

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

True

False

18.

1 point

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

restrictive endorsement

blank endorsement

endorsement

special endorsement

19.

1 point

A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder.

credit card

debit card

savings card

special card

20.

1 point

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

True

False

21.

1 point

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

True

False

22.

1 point

An endorsement indicating a new owner of a check.

special endorsement

restrictive endorsement

endorsement

blank endorsement