| A | B |
|---|
| bank statement | A report of deposits, withdrawals, and bank balances sent to a depositor by a bank |
| blank endorsement | An endorsement consisting only of the endorser's signature |
| checking account | A bank account from which payments can be ordered by a depositor |
| debit card | A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder |
| dishonored check | A check that a bank refuses to pay |
| electronic funds transfer | A computerized cash payments system that uses electronic impulses to transfer funds |
| endorsement | A signature or stamp on the back of a check, transferring ownership |
| petty cash | An amount of cash kept on hand and used for making small payments |
| petty cash slip | An amount of cah kept on hand and used for making small payments |
| postdated check | A check with a future date on it |
| restrictive endorsement | An endorsement restricting further transfer of a check's ownership |
| special endorsement | An endorsement indicating a new owner of a check |
| Received bank statement showing bank service charge | Debit Mis. Exp.; Credit Cash |
| Received notice from a bank of a dishonored check from B. Johnson | Debit Accounts Receivable - B. Johnson; Credit Cash |
| Paid cash on account to Super Supplies using EFT | Debit Accounts Payable - Super Supplies; Crediit Cash |
| Purchased supplies using a debit card | Debit Supplies; Credit Cash |
| Paid cash to establish a petty cash fund | Debit Petty Cash; Credit Cash |
| Paid cash to replenish petty cash fund, $12.00; supplies $3.50, miscellaneous expense | Debit Supplies; Debit Miscellaneous Expense; Credit Cash |
| Because cash transactions occur more frequently than other transactions | the chances for making recording errors affecting cash are more |
| When a deposit is made in a bank account | the bank issues a receipt |
| The are three types of endorsements commonly used are | blank, special, and restrictive |
| A check with a blank endorsement can be cashed | by anyone who has the check |
| When writing a check the first step is to | prepare the check stub |
| A check that contains errors must be marked with the word VOID and | another check must be written |
| An outstanding check is | one that has been issued but not yet reported on a bank statement |
| An important aspect of cash control is | verifying that the information on a bank statement and a checkbook are in agreement |
| Not only do banks charge a fee for handling a dishonored check, but | they also deduct the amount of the check from the account as well |
| A petty cash fund is usually used | for making small cash payments without writing checks |
| Anytime a payment is made from the petty cash fund, | a petty cash slip is prepared showing proof of a petty cash payment |
