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STUDENT NAME

Chapter 6 Review

Self-Paced Accounting Worksheet

Learning Unit 6-1

Bank Procedures, Checking Accounts, and Bank Reconciliations

1. The signature card helps avoid possible _________.

Forgeries

2. The ________ ________ is used when making deposits of cash or checks from any journal.

Deposit Ticket

3. When a bank ________ your account, it is increasing the balance.

Credits

4. A ________ __________ means the check can be further endorsed by someone else. No restrictions exist.

Blank Endorsement

5. A ______ __________ means the check can only be transferred by the company or person named in the endorsement. This is a safer type of endorsement compared to a blank endorsement.

Full Endorsement

6. A ___________ __________ is the safest endorsement for businesses.

Restrictive Endorsement

7. The one who writes the check is called the ________.

Drawer

8. The ________ is the one to whom a check is payable.

Payee

9. The ________ pays money to the payee.

Drawee

10. Checks processed by the bank that are no longer negotiable are called __________ __________.

Cancelled Checks

11. Bank statements have many different _________.

Formats

12. A _______ ____________ is a process of reconciling the bank balance on the bank statement versus the company’s checkbook balance.

Bank Reconciliation

13. ________ becomes a consideration in the reconciliation process.

Timing

14. ________ ______ _______ are unrecorded deposits that have not been added on to the bank balance.

Deposits in Transit

15. Checks are ___________ if they have been drawn by the depositor but have not reached the bank for payment.

Outstanding

16. An _________ ________ check is a check that has been returned because the drawer did not have enough money in its account to pay the check.

Insufficient Funds

17. A ________ memorandum is a deduction from the depositor’s balance.

Debit

18. A ________ memorandum is an increase in the depositor’s balance.

Credit

19. Adjustments to the checkbook balance must be _________ and _________.

Journalized

Posted

20. Automatic payroll deposits are an example of _________ _______ __________.

Electronic Funds Transfer

21. ____________ is a process used in not returning checks.

Safekeeping

Learning Unit 6-2

Petty Cash

22. Petty cash is an _____ on the balance sheet.

Asset

23. To establish petty cash, you ______ petty cash and _______ cash (checks).

Debit

Credit

24. The petty cash account, after establishment, is not debited or credited again if the size of the fund is ______ _______.

Not Changed

25. The total of the vouchers in the box and cash on hand should ______ the original amount of petty cash with which the fund was established.

Equal

26. An auxiliary petty cash record is _______.

Optional

27. No _________ are done from an auxiliary petty cash record.

Postings

28. Assuming petty cash level to remain the same, replenishment would be to debit each ______ _______ (documented by voucher) and write one check for the total to the custodian of the petty cash fund.

Old Expense

29. If petty cash, during replenishment, is to be raised to a higher level, the asset ______ ______ must be debited.

Petty Cash

30. If petty cash, during replenishment, is to be lowered, the asset ______ _____ must be credited.

Petty Cash

31. Change fund is an _______ on the balance sheet.

Asset

32. Shortages are ________ to the account cash short and over.

Debited

33. Overages are ________ to the account cash short and over.

Credited

34. Cash short and over is a temporary account that will be shown on the _________ _________.

Income Statement

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