Accounting Chapter 5

Most banks will accept postdated checks.

• True
• False

A signature card for a business's checking account should show only the signature of the business owner.

• True
• False

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

• True
• False

There are four types of endorsements commonly used: BLANK,SPECIAL,ORIGINAL,AND RESTRICTIVE.

• True
• False

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

• True
• False

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

• True
• False

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

• True
• False

Banks deduct service charges from customers' checking accounts without requiring customers to write a check for the amount.

• True
• False

The journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by a check.

• True
• False

The source document for a debit card purchase is a memorandum.

• True
• False