Podcast
Questions and Answers
An endorsement on the back of a check indicating that the check is to be accepted for deposit only is a?
An endorsement on the back of a check indicating that the check is to be accepted for deposit only is a?
The entry to establish a $200.00 petty cash fund is?
The entry to establish a $200.00 petty cash fund is?
An endorsement on the back of a check consisting of the words 'Pay to the order of' and a new check owner's name is a?
An endorsement on the back of a check consisting of the words 'Pay to the order of' and a new check owner's name is a?
Each time cash or checks are placed in a bank account, the customer prepares a?
Each time cash or checks are placed in a bank account, the customer prepares a?
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A petty cash fund is always replenished?
A petty cash fund is always replenished?
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A lost check with a blank endorsement on it can be cashed by?
A lost check with a blank endorsement on it can be cashed by?
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Cash Short and Over is classified as a(n)?
Cash Short and Over is classified as a(n)?
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When cash is short, the entry to replenish petty cash includes a?
When cash is short, the entry to replenish petty cash includes a?
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If any kind of error is made in preparing a check,?
If any kind of error is made in preparing a check,?
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Study Notes
Endorsements
- A restrictive endorsement on a check allows it to be accepted for deposit only.
- A special endorsement includes the phrase "Pay to the order of" followed by a new owner's name.
Petty Cash Fund
- Establishing a $200 petty cash fund requires a debit to Petty Cash and a credit to Cash of the same amount.
- Petty cash funds are replenished when cash is short, involving a debit to Cash Short and Over for replenishments due to shortages.
Cash and Checks
- Customers prepare a deposit slip for every cash or check placed into a bank account.
- Cash Short and Over is classified as an expense account, indicating discrepancies between cash receipts and amounts expected.
Lost Checks
- A lost check with a blank endorsement can be cashed by anyone possessing it, highlighting risks associated with such endorsements.
Error Handling
- If an error occurs while preparing a check, it is advisable to mark the check as VOID and also note it on the check stub, ensuring clarity and accuracy in accounting records.
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Description
Test your knowledge on various types of endorsements, petty cash funds, and cash management practices. This quiz covers essential concepts you need to understand for effective financial transactions and error handling in accounting. Perfect for accounting students or professionals looking to refresh their skills!
