Ch 9 - Cash Rec, Pay and Bank Proc VOCAB Flashcards Preview

Principles of Accounting > Ch 9 - Cash Rec, Pay and Bank Proc VOCAB > Flashcards

Flashcards in Ch 9 - Cash Rec, Pay and Bank Proc VOCAB Deck (31):
1

Define bank reconciliation statement.

statement that accounts for all differences between balance on the bank statement and book balance of cash

2

Define blank endorsement.

signature of the payee written on the back of the check that transfers ownership of the check without specifying to whom or for what purpose

3

Define bonding.

process by which employees are investigated by an insurance company that will insure the business against losses through employee theft or mishandling of funds

4

Define canceled check.

check paid by the bank on which it was drawn

5

Define cash.

in accounting: currency, coins, checks, money orders, and funds on deposit in a bank

6

Define cash payments journal .

special journal used to record transactions involving the payment of cash.

7

Define cash receipts journal.

special journal used to record and post transactions involving the receipt of cash

8

Define cash register proof.

verification that the amount of currently and coins in a cash register agrees with the amount shown on the cash register audit tape

9

Define Cash Short or Over account.

account used to record any discrepancies between the amount of currency and coins in the cash register and the amount shown on the audit tape.

10

Define check.

written order signed by authorized person instructing a bank to pay a specific sum of money to a designated person or business.

11

Define credit memorandum.

A form that explains any addition other than a deposit, to a checking account.

12

Define debit memorandum.

form that explains any deduction, other than a check, from a checking account.

13

Define deposit in transit.

deposit that is recorded in the cash receipts journal but that reaches the bank too late to be shown on the monthly bank statement

14

Define deposit slip.

form prepared to record the deposit of cash or checks to a bank account.

15

Define dishonored (NSF) check

check returned to the depositor unpaid because of insufficient funds in drawer's account, also called NSF check

16

Define drawee

bank on which a check is written

17

Define drawer.

person of firm issuing a check

18

Define electronic funds transfer (EFT)

electronic transfer of money from one account to another

19

Define endorsement.

written authorization that transfers ownership of a check.

20

Define full endorsement.

Signature transferring a check to a specific person, firm or bank.

21

Define negotiable.

financial instrument whose ownership can be transferred to another person or business.

22

Define outstanding checks.

checks that have been recorded in the cash payments journal but have not yet been paid by the bank

23

Define payee

person or firm to whom a check is payable

24

Define petty cash analysis sheet.

form used to record transactions involving petty cash

25

Define petty cash fund

special-purpose fund used to handle payments involving small amounts of money

26

Define petty cash voucher

form used to record the payments made from a petty cash fund

27

Define postdated check.

check dated some time in the future

28

Define promissory note

written promise to pay a specific amount of money on a specific date

29

Define restrictive endorsement

signature that transfers a check to a specific party for a stated purpose

30

Define service charge

fee charged by a bank to cover the costs of maintaining accounts and providing services

31

Define statement of account

form sent to a firm's customers showing transactions during the month and balance owed