Chapter 6 Quiz
Objectives:
1. Depositing, writing, and endorsing checks for
a checking account.
2. Reconciling a bank statement.
3. Establishing and replenishing a petty cash
fund; setting up an auxiliary petty cash record.
4. Establishing and replenishing a change fund.
5. Handling transactions involving cash short
and over.
TRUE/FALSE
8. Which of the following would require a credit
memo?
a) a deduction from the balance per books
b) an addition to the balance per bank statement
c) a deduction from the balance per bank
statement
d) an addition to the balance per books
9. Determine the adjusted balance per bank for
Jackson Advertising on May 31, from the
following information:





1. Any item listed on the bank reconciliation in the
bank balance column has already been recorded
by the business, or is an error on the bank's part,
and does not need to be journalized by the
business.
3. A signature card verifies authenticity of the
signature on all checks written by the business.
5. A change fund is used to allow the owner of the
business to withdraw funds for personal use.
MULTIPLE CHOICE
$1,500
275
360
1,980
2,480
a) $1,000
b) $725
c) $1,085
d) $1,500
2. A credit memo issued by the bank increases the
amount of cash in the customer’s account.
4. A petty cash voucher is completed when you are
buying a computer.
Cash balance on the bank statement
Customer's check returned--NSF
Customer's note collected by the bank
Deposits in transit, May 31
Outstanding checks, May 31
10. A $50 petty cash fund has cash of $7 and valid
receipts for $41. The entry to replenish the fund
would include a:
a) debit to Cash for $43.
b) credit to Cash for $43.
c) debit to Petty Cash for $43.
d) credit to Cash Short/Over for $2.
6. Endorsing a check:
a) guarantees payment.
b) transfers the right to deposit or transfer cash.
c) cancels the transaction.
d) All of these answers are correct.
7. The drawer has an account with the:
a) drawer.
b) drawee.
c) payee.
d) payer.
Chapter 6
TRUE/FALSE
1. ANSWER: True
(L.O. 2)
2. ANSWER: True
(L.O. 2)
3. ANSWER: True
(L.O. 1)
4. ANSWER: False
(L.O. 3)
5. ANSWER: False
(L.O. 4)
MULTIPLE CHOICE
6. ANSWER: b
(L.O. 1)
7. ANSWER: b
(L.O. 1)
8. ANSWER: d
(L.O. 2)
9. ANSWER: a
(L.O. 2)
10. ANSWER: b
(L.O. 5)
Chapter 6