DEFINITION
A report of deposits, withdrawals,
and bank balances sent to a
depositor by a bank.
BANK STATEMENT
DEFINITION
An endorsement consisting
only of the endorser’s
signature.
BLANK
DEFINITION
A bank account from which
payments can be ordered by a
depositor.
CHECKING ACCOUNT
DEFINITION
A statement that guides the
ethical behavior of a company
and its employees.
CODE OF CONDUCT
DEFINITION
A bank card that, when making
purchases, automatically deducts
the amount of the purchase from
the checking account of the
cardholder.
DEBIT CARD
DEFINITION
A check that a bank refuses to
pay.
DISHONORED CHECK
DEFINITION
A computerized cash payments
system that transfers funds
without the use of checks,
currency, or other paper
documents.
ELECTRONIC FUNDS
TRANSFER
DEFINITION
A signature or stamp on the
back of a check transferring
ownership.
ENDORSEMENT
DEFINITION
An amount of cash kept on
hand and used for making
small payments.
PETTY CASH
DEFINITION
A form showing proof of a
petty cash payment.
PETTY CASH SLIP
DEFINITION
A check with a future date
on it.
POST DATED CHECK
DEFINITION
An endorsement restricting
further transfer of a check’s
ownership.
RESTRICTIVE ENDORSEMENT
DEFINITION
An endorsement indicating a
new owner of a check.
SPECIAL ENDORSEMENT
Ownership of a check can or
can not be transferred.
CAN
Voided checks should be
recorded in the _______.
JOURNAL
Using a memorandum as the
source document for a
dishonored check is an
application of the accounting
concept _______ _______.
OBJECTIVE EVIDENCE
The petty cash fund is a/an
_______ (account classification)
with a normal ______ balance.
ASSET
DEBIT
When petty cash is
replenished, _____ is debited
and Cash is credited.
EACH ACCOUNT THAT IS
BEING REPLENISHED
A check with a _____
endorsement can be cashed
by anyone who has the check.
BLANK
An _______ check is one that
has been issued but not yet
reported on a bank statement
by the bank.
OUTSTANDING
A bank requires that the
signature of the person
authorized to sign checks be
on the ________ card.
SIGNATURE
The source document for an
electronic funds transfer is a
____________.
MEMORANDUM
The source document for a debit
card purchase is a _______.
MEMORANDUM
Each time cash or checks are
placed in a bank account, the
customer prepares a _______.
DEPOSIT SLIP
An endorsement on the back
of a check consisting only of a
signature is a ________
endorsement.
BLANK
A lost check with a blank
endorsement on it can be
cashed by ________.
ANYONE WHO HAS
THE CHECK
An endorsement on the back of a
check consisting of the words
“Pay to the order of” and a new
check owner’s name is a
_________ endorsement.
SPECIAL
An endorsement on the back of a
check indicating that the check is
to be accepted for deposit only is
a _______ endorsement.
RESTRICTIVE
What do you do if any kind of
error is made in preparing a
check?
•PREPARE A NEW CHECK
•WRITE “VOID” ON THE CHECK STUB
•WRITE “VOID” ON THE CHECK
•ALL OF THE ABOVE
The entry to establish a $200
Petty Cash fund is:
Debit _______ for $200
Credit _______ for $200
PETTY CASH
CASH
A petty cash fund is always
replenished _______.
AT THE END OF THE MONTH
The bank statement shows a
checking account balance of
$5,500. There are outstanding
checks totaling $600, and
outstanding deposit of $400,
and a bank service charge of
$15. The Cash account
balance should be ________.
$5,300
$5,500 – 600 + 400 = $5,300
Service Charge is already on
bank statement so no math is
calculated. You record that
amount in your register.