Deck 9: Handling Financial Procedures

Question 1

The person who draws a check on his or her account is the

A) payee.
B) drawer.
C) drawee.
D) payer.

Answer 1

drawer.

Question 2

A cashier's check is also called a/an

A) treasurer's check.
B) cancelled check.
C) outstanding check.
D) personal check.

Answer 2

treasurer's check.

Question 3

A bank money order

A) may be used in place of personal check for transactions.
B) is similar to a postal money order.
C) may be obtained from a bank.
D) All of the above.

Answer 3

All of the above.

Question 4

________ is an electronic delivery system for financial transactions.

A) Electronic funds transfer
B) Federal depository banking system
C) Computer assisted drawing
D) None of the above

Question 5

________ provides easy management of banking transactions online wherever you have access to the Internet.

A) Telephone transfers
B) Debit cards
C) Automatic debits
D) Web banking

Question 6

Check endorsements include the following kind(s) of endorsement:

A) restrictive endorsement.
B) bank endorsement.
C) full endorsement.
D) All of the above.

Question 7

A comparison of the final bank balance on the bank statement with the company checkbook balance is called a/an

A) balance sheet.
B) bank reconciliation.
C) income statement.
D) petty cash fund balance.

Question 8

To calculate gross earnings on a payroll register when there is overtime,

A) multiply regular pay time 6.2%.
B) multiply regular pay times overtime hours times time-and-one-half.
C) total regular earnings and overtime earnings.
D) multiply regular time times hourly rate.

Question 9

Another name for an income statement is a/an

A) profit and loss statement.
B) statement of owner's equity.
C) accounts receivable schedule.
D) balance sheet.

Question 10

You can research current currency exchange rates by

A) checking the newspaper.
B) searching the Internet.
C) calling your local bank.
D) All of the above.

Question 11

The instrument used most often for transferring funds is the debit card.

Question 12

A bank draft is a check drawn by a bank on its own funds in another bank located either in the same city or another city.

Question 13

When traveler's checks are lost or stolen, the owner usually can obtain a refund immediately by contacting a representative office of the company whose checks were purchased.

Question 14

When a customer activates an automated teller machine with an EFT card and enters a PIN or secret password, the computer is ready to answer an inquiry about the customer's account, supply balance data, or dispense cash.

Question 15

The company making an automatic deposit must be given the account's American Banking Association electronic pin number and the bank account number in which the money is to be deposit.

Question 16

The drawee can request a stop-payment notification on a check for a fee only at certain days during the month.

Question 17

Cancelled checks are those checks that have not cleared the bank and are not listed on the monthly bank statement.

Question 18

Two FICA taxes are required for all employees each payroll period--social security and Medicare.

Question 19

A master budget consists of various budgets that collectively express the company's future activities.

Question 20

Using a perpetual inventory card is helpful to keep track of the inventory of supplies.

Question 21

Assets are what the company owes.

Question 22

You should prepare a petty cash voucher for each expenditure in a petty cash fund.

Question 23

The balance sheet's purpose is to show the total capital figure the owner has invested.

Question 24

Before completing a bank reconciliation, the checkbook balance usually does not balance with the bank statement ending balance.

Question 25

A bank draft is a check drawn by a bank on its own funds (or credit) in another bank located in the same city or another city.

Question 26

Debit cards are used in the place of cashier's checks.

Question 27

Direct payroll deposits enables an organization to pay its bills online.

Question 28

When you want to make a payment on an account by phone, you will find that all companies provide this service.

Question 29

When making a bank deposit and you have a lot of coins, use coin wrappers supplied by the bank to package a large number of coins in rolls, and write your account number on each roll.

Question 30

To replenish the petty cash fund, balance the fund, formally request a check for the amount needed to bring the fund amount back to its beginning balance, and prepare the petty cash report.

Question 31

A budget report provides the basis for analyzing and revising spending activities of a company by comparing actual sales or costs with figures that were budgeted for those sales or costs.

Question 32

Often a company hires an outside certified public accountant (CPS) to handle the more complicated aspects of accounting for the company.

Question 33

Because of the high cost of dishonesty, you must be a person others see as having high values.

Question 34

A budget is the report in which future business operations are expressed in financial terms.

Question 35

Explain when a cashier's check would be most often used.

Question 36

Explain how a debit card is obtained.

Question 37

What is web banking and what functions does it provide to the bank customer?

Question 38

What is a stop-payment notification?

Question 39

What is a petty cash fund used for?