Chapter 5- Vocab Flashcards
code of conduct
a statement that guides the ethical behavior of a company and its employees
checking account
A bank account from which payments can be ordered by a depositor.
blank endorsement
an endorsement consisting only of the endorser’s signature
special endorsement
An endorsement indicating a new owner of a check (Pay to the owner of…)
restrictive endorsement
An endorsement restricting further transfer of a check’s ownership (For Deposit Only To The Account Of…)
postdated check
a check with a future date on it
bank statement
a report of deposits, withdrawals, and bank balances sent to a depositor by a bank
outstanding deposit
A deposit that has been made but not yet added to the person’s bank account. It is added to the total on the reconciliation,
reconciliation
The process of proving that a bank statement and checkbook balance are in agreement
outstanding check
A check that has been written but not yet deducted from the person’s bank account. It is subtracted from the total on the reconciliation.
dishonored check
A check that a bank refuses to pay, because of insufficient funds.
electronic funds transfer
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
debit card
a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. Takes money directly out of a cardholder’s account.
petty cash
An amount of cash kept on hand and used for making small payments
credit card
a card entitling its holder to buy goods and services based on the holder’s promise to pay for these goods and services. You are billed at the end of the month for a total and have to have a limit.
