<p> Chapter 6 Quiz</p><p>Objectives: 1. Depositing, writing, and endorsing checks for 8. Which of the following would require a credit a checking account. memo? 2. Reconciling a bank statement. a) a deduction from the balance per books 3. Establishing and replenishing a petty cash b) an addition to the balance per bank statement fund; setting up an auxiliary petty cash record. c) a deduction from the balance per bank 4. Establishing and replenishing a change fund. statement 5. Handling transactions involving cash short d) an addition to the balance per books and over. 9. Determine the adjusted balance per bank for TRUE/FALSE Jackson Advertising on May 31, from the following information: 1. Any item listed on the bank reconciliation in the  Cash balance on the bank statement $1,500 bank balance column has already been recorded  Customer's check returned--NSF 275 by the business, or is an error on the bank's part,  Customer's note collected by the bank 360 and does not need to be journalized by the  Deposits in transit, May 31 1,980 business.  Outstanding checks, May 31 2,480</p><p>2. A credit memo issued by the bank increases the a) $1,000 amount of cash in the customer’s account. b) $725 c) $1,085 3. A signature card verifies authenticity of the d) $1,500 signature on all checks written by the business. 10. A $50 petty cash fund has cash of $7 and valid 4. A petty cash voucher is completed when you are receipts for $41. The entry to replenish the fund buying a computer. would include a: a) debit to Cash for $43. 5. A change fund is used to allow the owner of the b) credit to Cash for $43. business to withdraw funds for personal use. c) debit to Petty Cash for $43. MULTIPLE CHOICE d) credit to Cash Short/Over for $2.</p><p>6. Endorsing a check: a) guarantees payment. b) transfers the right to deposit or transfer cash. c) cancels the transaction. d) All of these answers are correct.</p><p>7. The drawer has an account with the: a) drawer. b) drawee. c) payee. d) payer.</p><p>Chapter 6 TRUE/FALSE</p><p>1. ANSWER: True (L.O. 2)</p><p>2. ANSWER: True (L.O. 2)</p><p>3. ANSWER: True (L.O. 1)</p><p>4. ANSWER: False (L.O. 3)</p><p>5. ANSWER: False (L.O. 4) MULTIPLE CHOICE</p><p>6. ANSWER: b (L.O. 1)</p><p>7. ANSWER: b (L.O. 1)</p><p>8. ANSWER: d (L.O. 2)</p><p>9. ANSWER: a (L.O. 2)</p><p>10. ANSWER: b (L.O. 5)</p><p>2</p>