Accounting Chapter 5- Cash Control Systems

Front

Because cash transactions occur more frequently than other transactions, there is more chance of making recording errors affecting cash.

Back

True

Front

When a deposit is made in a bank account, the bank issues a check.

Back

False

Front

There are three types of endorsements commonly used: blank, special, and restrictive.

Back

True

Front

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

Back

True

Front

When writing a check, the first step is to prepare the check.

Back

False

Front

Most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime.

Back

False

Front

The amount of a check is written twice on each check.

Back

True

Front

The amount of a check is written twice on each check. (p. 127)

Back

True

Front

A check that contains minor errors can be corrected neatly and initialed.

Back

False

Front

An outstanding check is one that has not yet been issued.

Back

False