Accounting Terms Chapter 5 Flashcards

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Questions and Answers

What is a bank statement?

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

What is a blank endorsement?

An endorsement consisting only of the endorser's signature.

What is a canceled check?

A check that has been paid by the bank.

What does cash over refer to?

A petty cash on hand amount that is more than the recorded amount. Signup and view all the answers

What does cash short mean?

A petty cash on hand amount that is less than the recorded amount. Signup and view all the answers

What is a checking account?

A bank account from which payments can be ordered by a depositor. Signup and view all the answers

What is a debit card?

A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. Signup and view all the answers

What is a deposit slip?

A bank form listing the checks, currency, and coins that an account holder is adding to the bank account. Signup and view all the answers

What is a dishonored check?

A check that a bank refuses to pay. Signup and view all the answers

What is an electronic funds transfer?

A computerized cash payments system that transfers funds without the use of checks, currency, or other documents. Signup and view all the answers

What is an endorsement?

A signature or stamp on the back of a check, transferring ownership. Signup and view all the answers

What is a non-sufficient funds check?

A check dishonored by the bank because of insufficient funds in the account of the maker of the check. Signup and view all the answers

What is petty cash?

An amount of cash kept on hand and used for making small payments. Signup and view all the answers

What is a petty cash slip?

A form showing proof of a petty cash payment. Signup and view all the answers

What is a postdated check?

A check with a future date on it. Signup and view all the answers

What is a restrictive endorsement?

An endorsement restricting further transfer of a check's ownership. Signup and view all the answers

What is a special endorsement?

An endorsement indicating a new owner of a check. Signup and view all the answers

What is a voided check?

A check that cannot be processed because the maker has made it invalid. Signup and view all the answers

Study Notes

Banking and Accounting Terms

Bank Statement: A report detailing all deposits, withdrawals, and bank balances provided to the account holder by the bank.
Blank Endorsement: An endorsement featuring solely the signer’s signature, allowing for easy negotiation of the instrument.
Canceled Check: A check that has been processed and paid by the bank, confirming that the transaction is complete.
Cash Over: Occurs when the amount of petty cash on hand exceeds the amount that is officially recorded.
Cash Short: Refers to a situation where the petty cash on hand is less than the amount that is documented, indicating a potential loss.
Checking Account: A type of bank account that allows withdrawals and deposits. Payments can be made directly from this account by writing checks or using debit cards.
Debit Card: A card linked to a checking account that allows the holder to make purchases by automatically deducting the transaction amount from their account balance.
Deposit Slip: A form used at the bank to list items, such as checks or cash, that an account holder wishes to add to their bank account.
Dishonored Check: A check that the bank refuses to process due to insufficient funds or other issues.
Electronic Funds Transfer (EFT): A system for transferring money electronically, eliminating the need for checks or cash.
Endorsement: A signature or stamp placed on the back of a check that legally transfers ownership of that check to another party.
Non-Sufficient Funds Check (NSF Check): A check that is dishonored by the bank due to the account not having enough funds to cover it.
Petty Cash: Small amounts of cash available for minor expenditures, often kept on hand for convenience.
Petty Cash Slip: A documentation form that serves as proof of a petty cash transaction.
Postdated Check: A check that is written with a future date, indicating when it can be cashed or deposited.
Restrictive Endorsement: An endorsement that limits further transfer or negotiation of a check, protecting the funds.
Special Endorsement: An endorsement that defines a new payee for a check, allowing for transfer to a specific third party.
Voided Check: A check marked as invalid, ensuring it cannot be processed for payment.

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Description

Test your knowledge of key accounting terms with these flashcards from Chapter 5. Each card defines essential vocabulary like bank statement, blank endorsement, and canceled check, crucial for understanding accounting principles. Perfect for students aiming to reinforce their comprehension.