Accounting Vocab - Chapter 5

Check

A business form ordering a bank to pay cash from a bank account.

Checking account

A bank account from which payments can be ordered by a depositor.

Endorsement

A signature or stamp on the back of a check transferring ownership.

Blank endorsement

an endorsement consisting only of the endorser's signature.

Special endorsement

An endorsement indicating a new owner of a check.

Restrictive endorsement

An endorsement restricting further transfer of a check's ownership.

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.

Dishonored check

A check that a bank refuses to pay.

Electronic Funds Transfer (EFT)

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.

Petty cash

an amount of cash kept on hand and used for making small payments.

Petty cash slip

A form showing proof of a petty cash payment.

Cash

In accounting, money is referred to as: