Study Guide

Checking account

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

Deposit slip

A bank form which lists the checks, currency, and coins an account holder is adding to a bank account

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

Voided Check

A check that cannot be processed because the maker has made it invalid

Bank Statement

A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

Canceled Check

A check which has been paid by the bank

Dishonored Check

A check that a bank refuses to pay

Non-suffficent funds check

A check dishonored by the bank because of insufficient funds in the account of the maker of the check

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

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 short

A petty cash on hand amount that is less than the recorded amount

Cash over

A petty cash on hand amount that is more than the recorded amount

Accounting Clerk

An accounting worker who processes routine details about accounting transactions

T/F
An outstanding check is one that has not yet been issued

F

T/F
Not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account

T

T/F
When the petty cash fund is replenished, the balance of the petty cash account increases

F