Vocabulary Voyage
A bank account from which payments can be ordered by a depositor.
What is checking account
A signature or stamp on the back of a check, transferring ownership.
What is an endorsement?
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
What is a bank statement?
An amount of cash kept on hand and used for making small payments.
What is petty cash?
This account is debited when a bank statement shows a service charge fee.
What is Miscellaneous Expense?
A check that the bank refuses to pay.
What is a dishonored check?
An endorsement consisting only of the endorser's signature.
What is a blank endorsement?
A check with a future date on it.
What is a postdated check?
A form showing proof of a petty cash payment.
What is a petty cash slip?
This is the source document for a debit card purchase.
What is a memorandum?
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
What is a debit card
An endorsement indicating a new owner of a check (e.g., "Pay to the order of...").
What is a special endorsement?
A check which has been paid by the bank.
What is a canceled check?
A petty cash on hand amount that is less than the recorded amount.
What is cash short?
To record a dishonored check from customer J. Erlandson, you must debit this specific account.
What is Accounts Receivable—J. Erlandson?
A computerized cash payments system that transfers funds without the use of checks or currency.
What is Electronic Funds Transfer (EFT)
An endorsement restricting further transfer of ownership (e.g., "For deposit only").
What is a restrictive endorsement?
To ensure the checkbook balance is always up to date, this is the part of the check that should be prepared first.
What is the check stub?
This is the source document used to record the entry for replenishing the petty cash fund.
What is a check?
When establishing a petty cash fund, this account is credited.
What is Cash?
A check dishonored by the bank because of insufficient funds in the account of the maker.
What is an NSF check?
This type of endorsement is risky because it can be cashed by anyone who has possession of the check.
What is a blank endorsement?
These are checks that have been issued but have not yet been presented to or paid by the bank.
What are outstanding checks?
When the petty cash fund is replenished, this happens to the balance of the Petty Cash account.
Daily Double 1000 points! What is nothing (it stays the same)?
If the petty cash on hand is $1.00 more than the recorded amount, this account is used to record the difference.
What is Cash Short and Over?