31 terms

CH. 5 Accounting

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Terms in this set (...)

Checking Account
A bank account from which payments can be ordered by a depositor
Deposit Slip
a bank form which lists the checks, currency, and coins an account holder is adding to the bank account
Endorsement
A signature or stamp on the back of a check transferring ownership
Blank Endorsement
An endorsement consisting only of the endorser's signature.
Special Endorsement
An endorsement indicating a new owner of a check
Restrictive Endorsement
An endorsement restricting further transfer of a check's ownership
Postdated Check
a check with a future date on it
Voided Check
A check that cannot be processed because the maker has made it invalid.
Bank Statement
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Canceled Check
a check paid by the bank, deducted from the depositor's account, and returned with the bank statement to the account holder
Dishonored Check
A check that a bank refuses to pay
Non-sufficient Funds Check
A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
Electronic Funds Transfer
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
Debit Card
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder
Cash Short
A petty cash on hand amount that is less than a recorded amount
Cash Over
a petty cash on hand amount that is more than a recorded amount
Petty Cash Slip
A form showing proof of petty cash payment
Petty Cash
an amount of cash kept on hand and used for making small payments
True
Ownership of a check can be transferred?
Memorandum
Source document for a debit card is a
not used
When you replenish petty cash, petty cash is____________ and cash is credited.
Special endorsment
Endorsement on the back of a check that says "Pay to the order of" and a new check owner's name is
end of the month
When is petty cash fund replenished?
Expense
Cash short and over is classified as a(n)
Restrictive Endorsement
An endorsement on the back of a check indicating that the check is for a deposit to an account
Miscellaneous Expense
This account is used when you journalize a service charge.
debit to Cash Short and Over
When Cash is short, the entry to replenish petty cash includes.
Petty Cash is a Debit and Cash is a Credit
What accounts and where do you put them when you open a petty cash fund?
Deposit Slip
Each time cash or checks are placed in a bank account, the customer prepares a
False
Journalizing a voided check is not required.
Asset debit
Petty Cash fund a ___________ with a normal ___________ balance