Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Chapter 11
| Term | Definition |
|---|---|
| internal controls | procedures within the business that are designed to protect cash and other assets and to keep reliable records |
| external controls | measures and procedures provided outside the business to protect cash and other assets |
| checking account | an account that allows a person or business to deposit cash in a bank and then write checks and make ATM withdrawals and purchases against the account balance |
| check | a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check |
| depositor | a person or business that has cash on deposit in a bank |
| signature card | a bank form containing the signature(s) of the person(s) authorized to write checks on a checking account |
| deposit slip | a bank form used to list the cash and checks to be deposited |
| endorsment | an authorized signature written or stamped on the bank of a check that transfers ownership of the check |
| blank endorsment | a check endorsement that includes only the signature or stamp of the depositor. It does not specify the new owner of the check. |
| special endorsment | a check endorsement that transfers ownership of the check to a specific individual or business |
| restrictive endorsment | a check endorsement that transfers ownership to a specific owner and limits how the check may be handled (for example, For Deposits Only) |
| payee | the person or business to which a check is written or note is payable |
| drawer | the person who signs a check |
| drawee | the bank on which the check is written |
| voiding a check | making a check unusable by writing the word void in ink across the front of the check |
| bank statement | an itemized record of all the transactions in a depositor's account over a given period, usually a month |
| canceled checks | a check paid by the bank, deducted from the depositor's account, and returned with the bank statement to the account holder |
| imaged checks | a copy of a canceled check; it is sent with the bank statement in place of the original canceled check |
| reconciling the bank statement | the process of determining any difference between a bank statement balance and a checkbook balance |
| outstanding checks | a check that has been written but has not yet been presented to the bank for payment |
| outstanding deposits | a deposit that has been made and recorded in the checkbook but does not yet appear on the bank statement |
| bank service charge | a fee the bank charges for maintaining bank records and processing bank statement items for the depositor |
| stop payment order | a demand by the drawer, usually in writing, that the bank not honor a specific check |
| NSF check | a check returned to the depositor by the bank because the drawer's checking account does not have sufficient funds to cover the amount; also called dishonored check |
| Check 21 | the check clearing the 21st century act, it allows the conversion of a paper check to an electronic image that can be quickly processed between banks |
| postdated check | a check that has a future date instead of the actual date; it should not be deposited until the date on the check |
| electronic funds transfer system (EFTS) | a system that allows banks to transfer funds among accounts quickly and accurately without the exchange of checks |
| bankcard | a bank issued card honored by many business that can be used to withdraw cash and to make payments for goods and services at many businesses instead of writing checks; also called a debit card, ATM card, or check card |
| automated teller machine (ATM) | computer terminal where account holders can conduct various banking activities |
Created by:
308918
Popular Accounting sets