Definitions 1
A business form ordering a bank to pay cash from a bank account.
What is
Check
A signature or stamp on the back of a stamp transferring ownership.
What is
Endorsement
A check that has been paid by the bank.
What is
Cancelled Check
What is the difference between Cash Short and Cash Over?
Cash short: petty cash amount that is less than a recorded amount
Cash over: petty cash amount that is more than a recorded amount
A bank account from which payments can be ordered by a depositor.
What is
Checking Account
An endorsement consisting only of the endorser's signature.
What is
Blank Endorsement
A check that a bank refuses to pay.
What is
Dishonored Check
When is the "Cash Short and Over" account debited?
When is the "Cash Short and Over" account credited?
Debited when cash is short
Credited when cash is over
A bank form which lists the checks, currency, and coins an account holder is adding to the bank account.
What is
Deposit Slip
An endorsement indicating a new owner of a check (also known as an endorsement in full).
What is
Special Endorsement
A check dishonored by the bank because of insufficient funds in the account of the maker of the check.
What is
Non-Sufficient Funds Check (NSF Check)
Why would a business have a petty cash fund?
To make small payments on hand.
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
What is
Bank Statement
An endorsement restricting further transfer of a check's ownership
What is
Restrictive Ownership
An amount of cash kept on hand and used for making small payments.
What is
Petty Cash
What happens if the number amount written on a check does not match the amount written out in words?
The check is considered a dishonored check by the bank and cannot be legally transferred.
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
What is
Electronic Funds Transfer (EFT)
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder.
What is
Debit Card
A form showing proof of a petty cash payment.
What is
Petty Cash Slip
Why must information be recorded on stubs AND in the General Journal?
To keep organized records.