5-1
What is special endorsement?
An endorsement indicating a new owner of a check.
what is a bank statement?
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
what is a dishonored check?
A check that a bank refuses to pay.
what is petty cash?
An amount of cash kept on hand and used for making small payments.
what are the three types of endorsements.
Blank endorsement, special endorsement, and restrictive endorsement.
what is endorsement?
A signature or stamp on the back of a check transferring ownership.
what is canceled check?
A check which has been paid by the bank.
what is a non-sufficient funds check?
A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
what is a petty cash slip?
A form showing proof of a petty cash payment.
If a check mark is placed on the check stub of each canceled check, what does a check stub with no check mark indicate?
An outstanding check
what is blank endorsement?
An endorsement consisting only of the endorser’s signature.
what is a restrictive endorsement?
An endorsement restricting further transfer of a check’s ownership.
what is a electronic funds transfer?
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
what is a cash short?
A petty cash on hand amount that is less than the recorded amount.
What account is credited when a debit card is used to purchase supplies?
cash
what is a deposit slip?
A bank form which lists the checks, currency, and coins an account holder is adding to a bank account.
what is a postdated check?
A check with a future date on it.
what is a debit card?
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
what is a cash over?
A petty cash on hand amount that is more than the recorded amount.
5-4
Why do businesses use petty cash funds?
For making small cash payments for which writing a check is not time- or cost-effective.
what is a checking account?
A bank account from which payments can be ordered by a depositor.
what is a voided check?
A check that cannot be processed because the maker has made it invalid.
what are the six reasons why a bank may dishonor a check.
1.The check appears to be altered.
2.The signature on the check does not match the signature on the signature card.
3.The amounts written in figures and in words do not agree.
4.The check is postdated.
5.The person who wrote the check has stopped payment on it.
6.The account of the person who wrote the check has insufficient funds to pay the check.
what is accounting clerk?
An accounting worker who processes routine details about accounting transactions.
5-4 Why is Cash rather than Petty Cash credited when a petty cash fund is replenished?
The check issued to replenish petty cash is a credit to Cash and does not affect Petty Cash.