Accounting Chapter 5
Terms in this set (23)
Code of conduct
A statement that guides the ethical behavior of a company and its employees.
A bank account from which payments can be ordered by a depositor.
A signature or stamp on the back fo a check transferring ownership.
An endorsement consisting only of the endorser's signature.
An endorsement indicating a new owner of a check.
An endorsement restricting further transfer of a check's ownership.
A check with a future date on it.
Areport of deposits, withdrawals, and bank balances sent to a depositor by a bank.
A check that a bank refuses to pay.
Electronic Funds Transfer
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
An amount of cash kept on hand and used for making small payments.
Petty Cash Slip
A form showing proof a petty cash payment.
List the three types of endorsements
List the steps for preparing a check stub
1) Write the amount of the check after the $ sign on top of stub.
2) Write the date of check on date line.
3) Write to whom the check is to be paid on the To line.
4) Record the purpose of the check on the For line.
5) Write the amount of the check after the words "Amt. This check"
6) Calculate the new checking balance and record it in the amount column on the last line of stub.
List the steps for preparing a check
1) Write the date in the space provided.
2) Write to whom the check is to be paid following "pay to the order of."
3) Write the amount in figures following $.
4) Write the amount in words on the line that says "dollars."
5) Write the purpose of check on line labeled "For."
6) Sign the check.
List 4 reasons why a depositor's records and a bank's records may differ
1) A service charge may not have been recorded in depositor's business records.
2) Outstanding deposits may be recorded in the depositor's records but not on bank statement.
3) Outstanding checks may be recorded in the depositor's records but not on the bank statement.
4) A depositor may have made a math or recording error.
If a check mark is placed on the check stub of each cancelled check, what does a check stub with no check mark indicate?
An outstanding check
List 6 reasons why a bank may dishonor a check
1) The check appears to be altered.
2) The signature on check doesn't match signature on the card.
3) The amounts written in figures and words don't agree.
4) Check is post dated.
5) The person who wrote the check has stopped the payment on it.
6) The account of the person who wrote the check has insufficient funds.
What account is credited when electronic funds transfer is used to pay cash on account?
What account is credited when a debit card is used to purchase supplies?
Why do businesses use petty cash funds?
Making small cash payments
Why is cash and not petty cash credited when a petty cash fund is replenished?
The check issued to replenish petty cash is credit to cash and does not affect petty cash
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