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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

Cash and Cash Control

Multiple Choice Questions


1	The fund that makes small payments for items like postage stamps, deliver charges and minor purchases is called?
		A)	Cash payments
		B)	Petty cash
		C)	Cheque
		D)	Cash


2	Which is not considered cash?
		A)	Credit card
		B)	Cash
		C)	Money order
		D)	Cheque


3	What term is used to describe when a specific amount of money is to pay on a specific date?
		A)	Accounts payable
		B)	Notes payable
		C)	Promissory note
		D)	Loan payable


4	Which is not an advantage offered by the cash receipts journal?
		A)	Saves time
		B)	Saves effort
		C)	Saves transactions
		D)	Saves recording space


5	What is the journal entry to increase the amount of the petty cash account balance?
		A)	Debit petty cash, credit cash
		B)	Debit cash, credit petty cash
		C)	Debit petty cash, credit accounts payable
		D)	Debit accounts payable, credit petty cash


6	The term used when employees are investigated by an insurance company and given insurance against losses is called?
		A)	Reconciling
		B)	Insured
		C)	Commissioned
		D)	Bonding


7	When the signature of the payee of a cheque appears on the back of a cheque, this is called?
		A)	Full endorsement
		B)	Restrictive endorsement
		C)	Approval
		D)	Blank endorsement


8	What does the bank prepare to explain any amounts other than a deposit that is added to a chequing account?
		A)	Credit memorandum
		B)	Debit memorandum
		C)	Cheque
		D)	Letter


9	The bank on which a cheque is written is called?
		A)	Drawer
		B)	Canceled cheque
		C)	Drawee
		D)	Payee


10	A bank reconciliation does what?
		A)	Reconciles the firm's financial records with the bank
		B)	Reconciles the bank statement balance with the cash payments journal
		C)	Reconciles the bank statement balance with the cash receipts journal
		D)	Reconciles the bank statement balance with the balance at head office

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