Accounting Chapter 5- Cash Control Systems

Because cash transactions occur more frequently than other transactions, there is more chance of making recording errors affecting cash. (p. 122)

• True
• False

When a deposit is made in a bank account, the bank issues a check. (p. 123)

• True
• False

There are three types of endorsements commonly used: blank, special, and restrictive. (p. 124)

• True
• False

A check with a blank endorsement can be cashed by anyone  who has possession of the check. (p. 124)

• True
• False

When writing a check, the first step is to prepare the check. (p. 126)

• True
• False

Most banks do not look at the date the check is written and will withdraw money form the depositor's account anytime. (p. 126)

• True
• False

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

• True
• False

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

• True
• False

A check that contains minor errors can be corrected neatly and initialed (p. 127)

• True
• False

An outstanding check is one that has not yet been issued. (p. 130)

• True
• False