Study
Guide
5
PartOne—IdentifyingAccountingTerms
Directions:SelecttheoneterminColumnIthatbestfitseachdefinitionin
ColumnII.PrinttheletteridentifyingyourchoiceintheAnswerscolumn.
Column I
A. bankstatement
B. blankendorsement
C. canceledcheck
D.cashover
E. cashshort
F. checkingaccount
G.debitcard
H.depositslip
I. dishonoredcheck
J. electronicfunds transfer
K. endorsement
L. NSFcheck
M.pettycash
N.pettycashslip O.postdatedcheck P. restrictive
endorsement
Q.specialendorsement
R. voidedcheck
Column II
1.Abankaccountfromwhichpaymentscanbeorderedbya depositor.(p.123)
2.Abankformwhichliststhechecks,currency,andcoinsan accountholderisaddingtothebankaccount.(p.123)
3.Asignatureorstamponthebackofacheck,transferring ownership.(p.124)
4.Anendorsementconsistingonlyoftheendorser’ssignature.(p.124)
5.Anendorsementindicatinganewownerofacheck.(p.124)
6.Anendorsementrestrictingfurthertransferofacheck’s ownership.(p.125)
7.Acheckwithafuturedateonit.(p.126)
8.Acheckthatcannotbeprocessedbecausethemakerhasmadeit invalid.(p.127)
9.Areportofdeposits,withdrawals,andbankbalancessenttoa depositorbyabank.(p.129)
10.Acheckwhichhasbeenpaidbythebank.(p.129)
11. Acheckthatabankrefusestopay.(p.135)
12.Acheckdishonoredbythebankbecauseofinsufficientfundsin theaccountofthemakerofthecheck.(p.135)
13.Acomputerizedcashpaymentssystemthattransfersfundswithout theuseofchecks,currency,orotherpaperdocuments.(p.137)
14.Abankcardthatautomaticallydeductstheamountofapurchase fromthecheckingaccountofthecardholder.(p.138)
15.Anamountofcashkeptonhandandusedformakingsmall payments.(p.140)
16.Aformshowingproofofapettycashpayment.(p.141)
17.Apettycashonhandamountthatislessthanarecorded amount.(p.143)
18.Apettycashonhandamountthatismorethanarecorded amount.(p.143)
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Chapter5Cash ControlSystems•91
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PartTwo—AnalyzingTransactionsinaCash
ControlSystem
Directions:Analyzeeachofthefollowingtransactionsintodebit andcreditparts.Printtheletteridentifyingyourchoiceinthe properAnswerscolumns.
AccountTitles
A. Cash
B. PettyCash
C. AccountsReceivable—
J.Erlandson
D. Supplies
E. AccountsPayable—Fargo
Supplies
F.CashShortandOver
G. MiscellaneousExpense
Answers
DebitCredit
1–2. Receivedbankstatementshowingbankservicecharge.(p.133)
3–4. ReceivednoticefromthebankofadishonoredcheckfromJ.Erlandson.(p.136)
5–6. PaidcashonaccounttoFargoSuppliesusingEFT.(p.137)
7–8. Purchasedsuppliesusingadebitcard.(p.138)
9–10. Paidcashtoestablishapettycashfund.(p.140)
11–12. Paidcashtoreplenishapettycashfund:$50.00;supplies,$35.00;
miscellaneousexpense,$14.00;cashshort,$1.00.(p.144)
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92 •Working Papers TE
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Name Date Class
PartThree—IdentifyingAccountingConceptsandPractices
Directions:PlaceaTforTrueorFforFalseintheAnswerscolumntoshowwhether eachofthefollowingstatementsistrueorfalse.
Answers
1.Becausecashtransactionsoccurmorefrequentlythanothertransactions,thereismore chanceformakingrecordingerrorsaffectingcash.(p.122)
2.Whenadepositismadeinabankaccount,thebankissuesacheck.(p.123)
3.Therearethreetypesofendorsementscommonlyused:blank,special,andrestrictive.(p.124)
4.Acheckwithablankendorsementcanbecashedbyanyonewhohaspossessionofthe check.(p.124)
5.Whenwritingacheck,thefirststepistopreparethecheck.(p.126)
6.Mostbanksdonotlookatthedatethecheckiswrittenandwillwithdrawmoneyfrom thedepositor’saccountanytime.(p.126)
7.Theamountofacheckiswrittentwiceoneachcheck.(p.126)
8.Acheckthatcontainsminorerrorscanbecorrectedneatlyandinitialed.(p.127)
9.Animportantaspectofcashcontrolisverifyingthattheinformationonabankstatement andacheckbookareinagreement.(p.130)
10.Anoutstandingcheckisonethathasnotyetbeenissued.(p.130)
11. Banksdeductservicechargesfromcustomers’checkingaccountswithoutrequiring customerstowriteacheckfortheamount.(p.132)
12.Notonlydobankschargeafeeforhandlingadishonoredcheck,buttheyalsodeductthe amountofthecheckfromtheaccountaswell.(p.135)
13.Thejournalentryforapaymentonaccountusingelectronicfundstransferisexactlythe sameaswhenthepaymentismadebydebitcard.(p.137)
14.Thesourcedocumentforanelectronicfundstransferisachecknumber.(p.137)
15.Thesourcedocumentforadebitcardpurchaseisamemorandum.(p.138)
16. Thepurposeofapettycashfundistomakesmallcashpaymentswithoutwriting checks.(p.140)
17.Businessesusepettycashwhenwritingacheckisnottimeorcosteffective.(p.140)
18.Apettycashreportiscompletedattheendofeachbusinessday.(p.143)
19.Amemorandumisthesourcedocumentfortheentrytorecordreplenishingthepetty cashfund.(p.144)
20.Whenthepettycashfundisreplenished,thebalanceofthepettycashaccount increases.(p.145)
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Chapter5Cash ControlSystems•93
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