Chapter 6 Quiz

Question 1

Procedures and methods to control a firm’s assets as well as monitor its operations

Answer 1

Internal Control System

Question 2

Form provided by a bank for use in depositing money or checks into a checking account

Answer 2

Deposit slip

Question 3

Form used to indicate a specific amount of money that is to be paid by the bank to a named person or company

Answer 3

Check

Question 4

Person who writes the check

Answer 4

Drawer

Question 5

Bank that drawer has an account with

Answer 5

Drawee

Question 6

Person or company to whom the check is payable

Answer 6

Payee

Question 7

Check that has been processed by a bank and is no longer negotiable

Answer 7

Cancelled check

Question 8

Process of reconciling the checkbook balance with the bank balance given on the bank statement

Answer 8

Bank Reconciliation

Question 9

Report sent by the bank to a customer indicating the previous balance, etc.

Answer 9

Bank Statement

Question 10

Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement

Answer 10

Outstanding Checks

Question 11

Notation indicating that a check has been written on an account that lacks sufficient funds to back it up

Answer 11

NSF (Non-sufficient funds)

Question 12

Decrease in depositors balance

Answer 12

Debit memorandum

Question 13

Increase in depositors balance

Answer 13

Credit memorandum

Question 14

Electronic system that transfers funds without the use of paper checks

Answer 14

Electronic funds transfer (EFT)

Question 15

Machine that allows for depositing, withdrawal, and advanced banking transactions

Answer 15

ATM (automatic teller machine)

Question 16

Fake e-mails that attempt to obtain information about online banking customers

Answer 16

Phishing

Question 17

Procedure whereby checks are not returned to the drawer with the bank statement but are kept at the bank

Answer 17

Check truncation (safekeeping)

Question 18

Fund that allows payment of small amounts without the writing of checks

Answer 18

Petty cash fund

Question 19

Petty cash form to be completed when money is taken out of petty cash

Answer 19

Petty cash voucher

Question 20

One responsible for overseeing the fund

Answer 20

Custodian

Question 21

Supplementary record for summarizing petty cash information

Answer 21

Auxiliary petty cash

Question 22

Fund made up of various denominations that are used to make change for customers

Answer 22

Change fund

Question 23

Account that records cash shortages and overages

Answer 23

Cash short and over