Chapter 5 Quiz

What is a checking account?

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

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

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

• A check that a bank refuses to pay

What is an endorsement?

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

• Signature only

• An endorsement indicating a new owner of a check

• An endorsement restricting further transfer of a check’s ownership

What is a blank endorsement?

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

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

• Signature only

• An endorsement indicating a new owner of a check

What is a restrictive endorsement?

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

• An endorsement restricting further transfer of a check’s ownership

• Signature only

• An endorsement indicating a new owner of a check

What is a special endorsement?

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

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

• Signature only

• An endorsement indicating a new owner of a check

What is a postdated check?

• A check with a future date on it

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

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

• A check that a bank refuses to pay

What is petty cash?

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

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

• A check that a bank refuses to pay

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

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

• checking account

• bank statement

• savings account

• petty cash report

Reasons why a check would be dishonored?

• Signature does not match

• It is postdated

• Something is altered on the check

• There are sufficient funds in the account

What is the purpose of the bank reconciliation?

• To notify the bank of any changes

• To make sure your checking account and bank statement are the same.

• To make sure your checking account and bank statement are not the same