22 terms

Chapter 5 Vocab


Terms in this set (...)

Bank Statement
A report of deposits, withdrawals, and bank balances sent to a depositor by the bank.
Dishonored Check
A check that a bank refuses to pay.
Electronic Funds Transfer (EFT)
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.
Code of Conduct
A statement that guides the ethical behavior of a company and its employees.
Checking Account
A bank account from which payments can be ordered by a depositor.
A signature or stamp on the back of a check transferring ownership.
Blank Endorcement
Consists of the endorsers signature.
Special Endorcement
Indicates a new owner of a check. "Pay to the order of"
Restrictive Endorcement
Restricts further transfer of a check's ownership. It limits use of the check to whatever purpose is stated in the endorsement. "For Deposit Only"
Petty Cash
An amount of cash kept on hand and used for making small payments.
Petty Cash Slip
A form showing proof of a petty cash payment.
Establish Petty Cash =
Debit Petty Cash - Credit Cash
Replenish Petty Cash =
Debit the affected accounted - Credit Cash
Least safe asset.
Two reasons why Cash is least safe asset.
No proof of ownership
Lost easily
Two practices that are illegal in check writing.
Non sufficient Funds
Reasons a bank would dishonor a check
Appears altered
Post dated
Signature doesn't match
Non-sufficient funds
When should a check be signed?
When should the check stub be filled out?
When journalizing a service charge, which accounts are affected?
Misc Expense
When journalizing a dishonored check, which accounts are affected?
AR/Customers Name