TRUE OR FALSE

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.