Answer T or F

1. Money orders are considered cash
2. A customers check received inn settlement of an account receivable is considered cash.
3. Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.
4. For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.
5. When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt, this is an example of a preventive control.
6. If the balance in Cash Short and Over at the end a period is a credit, it indicates that cash shortages have exceeded cash overages for the period.
7. If the balance in Cash Short and Over at the end of a period is a credit it should be reported as an other income item on the income statement
8. An example of good internal controls over cash payments is the taking of all cash discounts offered.
9. A voucher is a form on which is recorded pertinent data about liability and the particulars of its payment.
10. When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.
11. A voucher system is an example of an internal control procedure over cash payments
12. A voucher is written authorization to make cash payment.
13. A payment system that uses computerize electronic impulses to effect a cash transaction is called electronic funds transfer (EFT)
14. A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.
15. The party signing a check is called the drawee
16. The bank often informs the depositor of bank service charges by including a credit memorandum with the monthly bank statement.
17. A signature card shows the signature of only the person who authorizes others in the company to sign checks.
18. The payor is the party to whom payment is made.
19. Bank customers are considered creditors of the bank so the bank can shows their accounts with credit balances on the banks records.
20. Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over checks.
21. In preparing bank reconciliation, the amount of deposits in transit is deducted from the balance per bank statement.
22. In preparing bank reconciliation, the amount of outstanding checks is added to the balance per bank statement.
23. In preparing bank reconciliation, the amount indicated by a debit memorandum for bank service charges is added to the balance per depositors records.
24. In preparing bank reconciliation, the amount of a check omitted from the journal is added to the balance per depositors records.
25. A check for $456 was erroneously charged by the bank as $654. In order for the bank reconciliation to balance, you add $198 to the bank statement balance

Answer T or F

1. Money orders are considered cash
2. A customers check received inn settlement of an account receivable is considered cash.
3. Businesses who have several bank accounts, petty cash, and cash on hand, would maintain a separate ledger account for each type of cash.
4. For strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees.
5. When a clerk enters a sale and the customer can see the amount displayed and is given a cash receipt, this is an example of a preventive control.
6. If the balance in Cash Short and Over at the end a period is a credit, it indicates that cash shortages have exceeded cash overages for the period.
7. If the balance in Cash Short and Over at the end of a period is a credit it should be reported as an other income item on the income statement
8. An example of good internal controls over cash payments is the taking of all cash discounts offered.
9. A voucher is a form on which is recorded pertinent data about liability and the particulars of its payment.
10. When the voucher system is used, the amount due on each voucher represents the credit balance of an account payable if the voucher is in full payment to a creditor.
11. A voucher system is an example of an internal control procedure over cash payments
12. A voucher is written authorization to make cash payment.
13. A payment system that uses computerize electronic impulses to effect a cash transaction is called electronic funds transfer (EFT)
14. A remittance advice is the notification accompanying the check issued to a creditor that states the specific invoice being paid.
15. The party signing a check is called the drawee
16. The bank often informs the depositor of bank service charges by including a credit memorandum with the monthly bank statement.
17. A signature card shows the signature of only the person who authorizes others in the company to sign checks.
18. The payor is the party to whom payment is made.
19. Bank customers are considered creditors of the bank so the bank can shows their accounts with credit balances on the banks records.
20. Depositing all cash, checks, etc. in a bank and paying with checks is an internal control procedure over checks.
21. In preparing bank reconciliation, the amount of deposits in transit is deducted from the balance per bank statement.
22. In preparing bank reconciliation, the amount of outstanding checks is added to the balance per bank statement.
23. In preparing bank reconciliation, the amount indicated by a debit memorandum for bank service charges is added to the balance per depositors records.
24. In preparing bank reconciliation, the amount of a check omitted from the journal is added to the balance per depositors records.
25. A check for $456 was erroneously charged by the bank as $654. In order for the bank reconciliation to balance, you add $198 to the bank statement balance