Accounting Review Chapters 1-5

A drawing account is decreased by debits and increased by credits.

• True

• False

A list of accounts used by a business is a chart of accounts.

• True

• False

When a business pays for insurance, Prepaid Insurance is

• Increased by a debit

• increased by a credit

• decreased by a debit

• decreased by a credit

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

• restrictive endorsement

• special endorsement

• blank endorsement

• cryptic endorsement

A check that a bank refuses to pay.

• dishonored check

• electronic funds transfer

• endorsed check

• none of these

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

• bank statement

• debit card

• electronic funds transfer

• postdated check

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

• bank statement

• debit card

• electronic funds transfer

• postdated check

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

• True

• False

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

• True

• False

The entry to establish a $200.00 petty cash fund is

• debit Cash $200; credit Petty Cash $200

• debit Misc. Expense $200; credit Cash $200

• debit Petty Cash $200, credit Cash $200

• debit Petty Cash $200; credit Misc. Expense $200