A1: Chapter 5 Review

A bank form which lists the checks, currency, and coins an account holder is adding to the bank account

• check

• deposit slip

• checking account

• petty cash slip

an endorsement limiting further transfer of a check's ownership

a check that has been paid by the bank

• deposit

• NSF check

• canceled check

• petty cash

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

• petty cash

• deposit

• NSF check

• EFT

Which account is debited to establish the petty cash account?

A petty cash on hand amount that is less than a recorded amount

paid cash to replenish a petty cash fund that was used for miscellaneous expense debits what account?

• miscellaneous expense

• cash

• petty cash

• supplies

Why does a business use a petty cash fund? Select all that apply.

• to make small payments without writing checks

• to pay cash for large vendor purchases

• to pay cash for employees' salaries

• when writing a check is neither time nor cost effective

When the petty cash fund is replenished, the balance of the petty cash account increases.

• TRUE

• FALSE

An outstanding check is one that has

• been cashed

• not yet been cashed