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Cash/Checks
Endorse
Depositor
Mo Money
Ugly Cash
100
Name TWO issues relating to a business holding Cash
- Chance of Recording Errors - Ease of transfer without question of ownership - Loss of cash as it is moved from one place to another
100
What is an Endorsement?
A signature or stamp on the back of a check transferring ownership is called an endorsement.
100
List a reason why a depositor's records and a bank's record may differ.
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.
100
A non-sufficient funds check is also known as an
NSF check
100
An amount of cash kept on hand and used for making small payments is called
Petty Cash
200
Define a Check
A business form ordering a bank to pay cash from a bank account.
200
What are three types of commonly used endorsements?
1)Blank endorsement 2)Special endorsement 3)Restrictive endorsement
200
Where do you write the service charge on a check stub?
Write Service Charge on the check stub under the heading Other.
200
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called
electronic funds transfer (EFT).
200
A form showing proof of a petty cash payment is called a
petty cash slip
300
Define a checking Account
A bank account from which payments can be ordered by a depositor
300
What is a Blank Endorsement?
An endorsement consisting only of the endorser’s signature is called a blank endorsement.
300
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
300
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder is called a
debit card.
300
A petty cash on hand amount that is less than a recorded amount is called
cash short
400
What are the two things you need to open a checking account?
Signature card Deposit slip
400
What is a Special Endorsement?
An endorsement indicating a new owner of a check is called a special endorsement.
400
A check that a bank refuses to pay is called a
dishonored check
400
List 3 reasons of 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.
400
A petty cash on hand amount that is more than a recorded amount is called
cash over
500
What is a Deposit Slip?
A bank form which lists the checks, currency, and coins an account holder is adding to the bank account
500
What is a Restrictive Endorsement?
An endorsement restricting further transfer of a check’s ownership is called a restrictive endorsement.
500
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.
500
What account is credited when electronic funds transfer is used to pay cash on account?
Cash
500
Why do businesses use petty cash funds?
For making small cash payments for which writing a check is not time- or cost-effective