Flashcards in Ch 9 - Cash Rec, Pay and Bank Proc VOCAB Deck (31):
Define bank reconciliation statement.
statement that accounts for all differences between balance on the bank statement and book balance of cash
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
process by which employees are investigated by an insurance company that will insure the business against losses through employee theft or mishandling of funds
Define canceled check.
check paid by the bank on which it was drawn
in accounting: currency, coins, checks, money orders, and funds on deposit in a bank
Define cash payments journal .
special journal used to record transactions involving the payment of cash.
Define cash receipts journal.
special journal used to record and post transactions involving the receipt of cash
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
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.
written order signed by authorized person instructing a bank to pay a specific sum of money to a designated person or business.
Define credit memorandum.
A form that explains any addition other than a deposit, to a checking account.
Define debit memorandum.
form that explains any deduction, other than a check, from a checking account.
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
Define deposit slip.
form prepared to record the deposit of cash or checks to a bank account.
Define dishonored (NSF) check
check returned to the depositor unpaid because of insufficient funds in drawer's account, also called NSF check
bank on which a check is written
person of firm issuing a check
Define electronic funds transfer (EFT)
electronic transfer of money from one account to another
written authorization that transfers ownership of a check.
Define full endorsement.
Signature transferring a check to a specific person, firm or bank.
financial instrument whose ownership can be transferred to another person or business.
Define outstanding checks.
checks that have been recorded in the cash payments journal but have not yet been paid by the bank
person or firm to whom a check is payable
Define petty cash analysis sheet.
form used to record transactions involving petty cash
Define petty cash fund
special-purpose fund used to handle payments involving small amounts of money
Define petty cash voucher
form used to record the payments made from a petty cash fund
Define postdated check.
check dated some time in the future
Define promissory note
written promise to pay a specific amount of money on a specific date
Define restrictive endorsement
signature that transfers a check to a specific party for a stated purpose
Define service charge
fee charged by a bank to cover the costs of maintaining accounts and providing services