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ABA numbers

numbers printed on checks and deposit slips that contain information as to the bank, the area in which it is located, and the like

Auxiliary record

a business record that is not essential but is helpful in maintaining records that are essential; an example is the petty cash payments record

Bank checking account

an amount of cash on deposit with a bank that the bank must pay at the written order of the depositor

Bank reconciliation

making the bank statement balance agree with the checkbook balance

Bank statement

a monthly report showing the bank's record of the checking account

Blank endorsement

an endorsement consisting only of a signature on the back of a check; a check with this kind of endorsement can be cashed or transferred to another by anyone who has possession of it

Canceled checks

checks that have been paid by the bank out of the depositor's account

Cash

in its most basic meaning, this is currency (paper money) and coin; the definition in a business context also includes checks; money orders, traveler's checks, cashier's checks, bank drafts, and receipts from credit card sales

Cash Short and Over

an account used to bring the Cash account into agreement with the actual amount of cash on hand; this account is used in businesses that have many cash transactions and thus often have small amounts of cash over or under what the cash register shows

Change fund

an amount of money that is maintained in the cash register for making change for cash customers

Change fund account

an asset account in which the amount of the change fund is recorded

Check

a written order directing a bank to pay a specified sum of money to a designated person or business

Checkbook

a bound book of check with stubs; the depositor's record of the checking account

Check stub

part of a check that remains in the checkbook as a permanent record of the check

Combined journal

a multicolumn journal used by small businesses to help save journalizing and posting time; it has two special columns for recording debits ad credit to cash, various other special columns for recording transactions that occur often, and two general columns for recording transactions that occur less often

Depositor

the business or person under whose name a checking account is opened

Deposits in transit

deposits made and appearing in the checkbook but not appearing on the bank statement; also called outstanding deposits

Deposit slip

a form that is prepared when coin, currency, or checks are deposited in a bank account, it indicates the depositor's name and account number and summarizes the amount deposited; also called deposit ticket

zero proof test

a test performed using the plus and minus bars of a calculator; this means that two equal columns have a no difference

signature card

lists personal information and contains the signature of the persons authorized to write checks on a bank account; the bank keeps these on file to help identify possible forgeries

service charges

charges or fees by the bank that are subtracted directly from the depositor's account and appear on the bank statement; also called bank charges

restrictive endorsement

an endorsement on the back of a check that specifies the purpose for which the money is to be used; for deposit only is a common one; means that the check cannot be cashed it can only be deposited

replenishing the petty cash fund

means to fill up; this term means to bring the amount of the fund back up to the level it was at the beginning of the month

petty cash voucher

a voucher used when payment is made from the petty cash fund; shows the amount of the payment, the purpose, and the account to be debited

petty cash payments record

an auxiliary record, one that is used to record payments from the petty cash fund; at the end of the month, the record is summarized and used as a basis for journal entry

petty cashier

the person designated to disburse money from the petty cash fund

petty cash fund

a small amount of cash kept in the office for making small payments for items such as postage and office supplies

payee

the business or person to whom a check is made payable

outstanding check

a check that was recorded in the checkbook but does not appear on the bank statement/ in other words, a check that has been written and entered in the checkbook but has not reached the bank's accounting department

NSF check (non sufficient funds check)

a check drawn against an account in which there are non sufficient funds; a bad check

internal control

the procedures used within a company to protect its assets

full endorsement

uses the phrase pay to the order of, followed by the name of the business or person to whom the check is being transferred; only the specified business or person can cash the check

endorsement

a signature or stamp on the back of a check that transfers ownership of the check to the bank or another person

drawer

the business or person who writes a check

drawee

the bank on which a check is drawn

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