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Cash Control and Banking Activities

Quiz by Jeff Slade

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11 questions
Show answers
  • Q1
    In a business, cash includes currency, coins and checks.
    True
    False
    10s
  • Q2
    An internal control is one used by a business to protect cash.
    False
    True
    10s
  • Q3
    The ABA number appears on both the check and the check stub.
    False
    True
    10s
  • Q4
    A restrictive endorsement is one example of an internal control.
    True
    False
    10s
  • Q5
    The check should be written first so that information is available for completing the check stub.
    False
    True
    10s
  • Q6
    The drawee of the check is the person who signs it.
    True
    False
    10s
  • Q7
    Proving cash is done only when reconciling the bank statement.
    True
    False
    10s
  • Q8
    Proving cash is an example of an external cash control.
    True
    False
    10s
  • Q9
    Banks add service charges to bank statements rather than billing their customers.
    True
    False
    10s
  • Q10
    An NSF check is recorded at the time it is returned rather than when the bank statements is reconciled.
    True
    False
    10s
  • Q11
    Cash is the most liquid asset and thus easily stolen.
    False
    True
    10s

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