Chapter 7 Quiz
Quiz yourself by guessing what should be in
each of the black rectangles below before clicking
on it to display the answer.
Help
| Flap 1 |
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| Flap 2 |
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| Cash |
Coins, currency, checks, money orders, and money on deposit |
| Preventive controls |
Controlling cash from the time it is received until it is deposited in the bank |
| Detective controls |
Procedures designed to detect theft or misuse of cash |
| Remittance advice |
Portion of the invoice returned with payment |
| Voucher system |
Set of procedures for authorizing and recording liabilities and cash payments |
| Electronic funds transfer |
Computers rather than paper are used to effect cash transactions |
| Signature card |
Used by the bank to verify signature on checks |
| Drawer |
One who signs the check |
| Drawee |
Institution on which check is drawn |
| Payee |
Party to whom payment is made |
| Petty cash fund |
Small amount of cash kept on hand to pay for expenses |
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