5-1
A bank account from which payments can be ordered by a depositor is called
Checking account
An amount of cash kept on hand and used for making small payments is called
petty cash
A check that a bank refuses to pay is called a
dishonered check
The length of time for which a business summarizes its financial information and reports its financial performance is called a
fiscal period.
A group of accounts is called a
ledger.
A business form ordering a bank to pay cash from a bank account is known as
Check
A check that has been paid by the bank is called a
canceled check.
A check dishonored by the bank because of insufficient funds in the account of the maker of the check is called a
non-sufficient funds check.
A fiscal period is also known as an
accounting period.
A ledger that contains all accounts needed to prepare financial statements is called a
general ledger.
A bank form that lists the checks, currency, and coins an account holder is adding to the bank account is called a
deposit slip
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called a
bank statement
A non-sufficient funds check is also known as an
NSF check.
A fiscal period consisting of twelve consecutive months is called a
fiscal year.
The name given to an account is known as an
account title.
A signature or stamp on the back of a check transferring ownership is called an
endorsement
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
A form showing proof of a petty cash payment is called a
petty cash slip.
A columnar accounting form used to summarize the general ledger information needed to prepare financial statements is called a
work sheet.
The number assigned to an account is called an
account number.
Three types of commonly used endorsements
Blank endorsement
Special endorsement
Restrictive endorsement
List four reasons why a depositor’s records and a bank’s records may differ.
1.A service charge may not have been recorded in the depositor’s business records.
2.Outstanding deposits may be recorded in the depositor’s records but not on a bank statement.
3.Outstanding checks may be recorded in the depositor’s records but not on a bank statement.
4. A depositor may have made a math or recording error.
A petty cash on hand amount that is less than a recorded amount is called
cash short.
What is written on the three-line heading on a work
sheet?
Name of the business, name of report, and date of
report
Describe the two parts of an account number.
The first digit indicates in which general ledger division the account is located.
The second and third digits indicate the location of the account within that division.