Part 1
A machine that allows for depositing, withdrawing, and advanced banking transactions.
What is an ATM
Account that records cash shortages and overages. If the ending balance is a debit, it is recorded on the income statement as a miscellaneous expense; if it is a credit, it is recorded as miscellaneous income.
Cash Short and Over account
(1) Decrease in depositor's balance. (2) A memo issued by a purchaser to a seller, indicating that some Purchases Returns and Allowances have occurred and therefore the purchaser now owes less money on account.
Debit memorandum
Electronic system that transfers funds without the use of paper checks
Electronic funds transfer (EFT)
(1) Person or company to whom the check is payable. (2) One to whom a note is payable.
Payees
Supplementary record for summarizing petty cash information
what is Auxiliary petty cash record
Fund made up of various denominations that are used to make change for customers.
Change fund
Form provided by a bank for use in depositing money or checks into a checking account
Deposit slips
Blank: Could be further endorsed. Full: Restricts further endorsement to only the person or company named. Restrictive: Restricts any further endorsement.
Endorsement
Fund (source) that allows payment of small amounts without the writing of checks.
Petty cash fund
Process of reconciling the checkbook balance with the bank balance is given on the bank statement.
Bank reconciliation
Procedure whereby checks are not returned to the drawer with the bank statement but are instead kept at the bank for a certain amount of time before being first transferred to microfilm and then destroyed.
Check truncation (safekeeping)
Deposits that were made by customers of a bank but did not reach, or were not processed by, the bank before the preparation of the bank statement
Deposits in transit
Procedures and methods to control a firm's assets as well as monitor its operations
Internal control systems
Petty cash form to be completed when money is taken out of petty cash.
Petty cash vouchers
Report sent by a bank to a customer indicating then previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance.
Bank statements
Form used to indicate a specific amount of money that is to be paid by the bank to a named person or company.
Checks
Bank that drawer has an account with.
Drawees
Notation indicating that a check has been written on an account that lacks sufficient funds to back it up.
NSF (nonsufficient funds)
Fake e-mails that attempt to obtain information about online banking customers.
Phishing
Check that has been processed by a bank and is no longer negotiable
Cancelled checks
(1) Increase in depositor's balance. (2) A piece of paper sent by the seller to a customer who has returned merchandise previously purchased on credit. The credit memorandum indicates to the customer that the seller is reducing the amount owed by the customer.
Credit memorandum
Person who writes a check
Drawers
Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement
Outstanding checks
Form signad by a banle customer that the bank uses to verify signature authenticity on all checks
Signature cards