| A | B |
|---|
| checking account | account where payments can be made by writing an order to pay |
| deposit slip | form used to deposit cash and checks into a checking account |
| special endorsement | "Pay to the order of", to transfer to a 3rd party |
| bank reconciliation | verifies that the checkbook and bank statement are in agreement |
| outstanding deposit | deposit made too late to be included on the bank statement |
| service charge | fee for using a checking account |
| petty cash | special cash account set up for small purchases |
| signature card | contains the exact signatures of persons who may write checks on the account |
| blank endorsement | name only, turns check into cash |
| restrictive endorsement | "For deposit only to the account of", limits who can deposit the check |
| bank statement | bank's report of deposits, withdrawals, and updated balance of checking account |
| outstanding check | check written but not cashed in time to be subtracted on the bank statement |
| dishonored check | check that the bank refuses to pay |
| cancelled check | check that has been subtracted from yor account and returned with bank statement |
| Cash and Petty Cash are both what types of accounts? | Assets |
| Is the balance of "Cash" your checking account balance or currency and coins? | checking account balance |
| Is "Petty Cash" your checking account balance or currency and coins? | currency and coins |
| When you pay someone on account, does the liability account increase or decrease? | decrease |
| The first step in the accounting cycle | Record all transactions into the journal. |
| The second step in the accounting cycle | Post all journal entries to the ledger. |
| The third step in the accounting cycle | Prepare a trial balance to prove D=C in the ledger |
| Debit and credit part of the entry to establish petty cash | Debit Petty Cash; Credit Cash |
| Debit and credit part of the journal entry to replentish petty cash (supplies and delivery expenses were used) | Debit Supplies and Delivery Expense; Credit Cash (This entry does not affect Petty Cash!!!!!!!!!!!!!) |
| Debit and credit part of entry to record bank service charge. | Debit Miscellaneous Expense; Credit Cash |
| Debit and credit part of the entry to record a dishonored check | Debit Miscellaneous Expense; Credit Cash |
