VOCABULARY
A bank account from which payments can be ordered by a depositor.
Checking Account
DR Supplies
CR Cash
This basketball legend became a billionaire thanks to his endorsement deals and ownership stake in a team - has a shoe named after him
Michael Jordan
Restrictive Endorsement!
see teachers response
An outstanding check is one that has been issued but not yet reported on a bank statement
True
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
Electronic Funds Transfer (EFT)
Paid cash to establish Petty Cash Fund
DR Petty Cash
CR Cash
When a team builds a new stadium, the cost appears on the balance sheet as what type of item
asset
Recorded bank service charge, $18.00. Memorandum No. 152.
DR = Miscellaneous Expense $18
CR = Cash $18
When petty cash is replenished, Petty Cash is debited and Cash is credited
False
A check that a bank refuses to pay.
Dishonored Check
Paid cash to owner for a withdrawal of equity
DR Owner's Equity
CR Cash
This term describes the total value of all a team’s assets minus its liabilities — it’s how much the team is “worth” on paper
Owner's Equity
Check Stub battle!
see teachers response
Voided checks should be recorded in the journal
True
A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
non-sufficient funds check (NSF)
Paid cash on account using EFT
DR Account Payable
CR Cash
In 2023, this soccer star’s move to Inter Miami boosted ticket sales and merchandise revenue dramatically
Messi
Paid cash to establish a petty cash fund --> $150
DR: Petty Cash $150
CR: Cash $150
The source document for an electronic funds transfer is a memorandum
True
An endorsement restricting further transfer of a check’s ownership.
Restrictive Endoresement
Received notice from the bank of a dishonored check
DR Accounts Receivable
CR Cash
This tennis star became the world’s highest-paid female athlete for several years, thanks to her Nike and Evian sponsorships (hint: she has a famous sister)
Serena Williams
Bank reconciliation!!
see teacher response
The petty cash fund is a liability with a normal debit balance
False