So similar type accounts like cash accounts can have similar account numbers that are consecutive or close to each other when established after the initial chart of accounts is created.
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Why are there number gaps left between types of accounts in the chart of accounts when it is first created?
100
Signing your name to the back of a check.
What is a blank endorsement?
100
This process adjusts the bank checking account balance with the amount showing in the company checkbook.
What is a bank reconciliation?
100
A fund established to pay for small items with cash.
What is a Petty Cash Fund?
200
Complete an end-of-period-work sheet. (Hint-page 194)
What is Step 6 in the accounting cycle?
200
Making payments and deposits using a computer rather than paper checks.
What is an electronic funds transfer (EFT)?
200
This makes a check payable to the bearer (that is whoever has it).
What is a blank endorsement?
200
A check that has been written and sent but has not yet been recorded by the bank as a deduction to the company checking account.
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What is an outstanding check?
200
One might cause your boss to think you can't count...the might cause your boss to think your a thief....
What is Cash over/short?
300
Because you need to know this BS.......(Basic Stuff).
What is "Why do you keep asking these questions"?
300
Because cash is so important in running a business a company should have this set of policies and procedures in place to manage and control cash and other assets (hint page 232).
What is a system of Internal Control?
300
When the back of a check is marked " For Deposit Only" or some other words to restrict the payment of a check to certain parties.
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What is a restrictive endorsement?
300
Adeposit that has been added to the checkbook balance but the bank has not yet added it to the company's checking account balance.
What is an outstanding deposit?
300
Used to record the expenditures made from the petty cash fund when it gets low or at the end of the accounting period.
What is a journal entry?
400
The account that is adjusted after taking an inventory.
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What is the supplies acount?
400
Required by The Patriot Act passed after the 9/11 terrorist attacks to help detect and prevent terrorism. It requires banks to be able to clearly identify all account holders (hint page 232).
What is a Customer Identification Program (CIP).
400
This is completed when opening a checking account to verify the authorized signers of checks.
What is a signature card?
400
These adjustments made during the bank reconciliation process require a journal entry to be recorded and posted to the general ledger.
What are the checkbook adjustments?
400
What it is called when you accidently switch two numbers when writing them down.
What is a transposition?
500
The account used to record wages that have been earned but not yet paid.
What is Wages Payable?
500
This account includes currency, coins, checking accounts, checks received from customers, money orders, and bank cashier's checks.
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What is the cash account?
500
The printed numbers on the bottom of checks that identifies the routing number, the bank the check is drawn on , and other important data.
What is MICR coding?
500
When the bank balance equals the checkbook balance after adjusting for items that cause a difference.
What is reconciled?
500
When it is ok to erase words or numbers in a journal entry or a posting to the general ledger.
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