Accounting Chapter 5

Front

In accounting, money is usually referred to as cash.

Back

True

Front

Most businesses make major payments with cash.

Back

False

Front

Ownership of a check cannot be transferred.

Back

False

Front

If a bank does not receive payment from the person who signed the check, each endorser of the check is individually liable for payment.

Back

True

Front

Blank endorsements should be used when sending checks through the mail.

Back

False

Front

Voided checks should be recorded in the journal.

Back

True

Front

When a bank statement is received, the depositor should verify its accuracy immediately.

Back

True

Front

Banks usually refuse to accept altered checks.

Back

True

Front

On a bank statement reconciliation, the adjusted check stub balance must be the same as the adjusted bank balance.

Back

True

Front

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

Back

True