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26 Cards in this Set
- Front
- Back
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What are internal control systems? |
Procedures and methods to control a firm's assets as well as monitor its operations. |
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What is a signature card? |
A form signed by a bank customer that the bank uses to verify signature authenticity on all checks. |
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What is a deposit slip? |
A form provided by a bank for use in depositing money or checks into a checking account. |
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What are the three types of endorsements? |
1. Blank: could be further endorsed 2. Full: restricts further endorsement to only the person or company named 3. Restrictive: restricts any further endorsement |
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What is a check? |
A form used to indicate a specific amount of money that is to be paid by the bank to a named person or company. |
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Who is a drawer? |
The person who writes a check |
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Who is the drawee? |
The bank that the drawer has an account with |
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Who is a payee? |
The person or company to whom the check is payable |
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What is a cancelled check? |
A check that has been processed by the bank and is no longer negotiable |
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What is a bank reconciliation? |
The process of reconciling the checkbook balance with the bank balance given on the bank statement |
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What is a bank statement? |
A report sent by a bank to a customer indicating the previous balance, ATM transactions, nonsufficient funds, individual checks processed, individual deposits received, service charges, and ending bank balance. |
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What are deposits in transit? |
Deposits that were made by customers of a bank but did not reach, or were not processed by, the bank before the preparation of the bank statement |
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What are outstanding checks? |
Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement |
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What does NSF stand for? |
Nonsufficient funds |
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What are non sufficient funds? |
Notation indicating that a check has been written on an account that lacks sufficient funds to back it up. |
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What is a debit memorandum? |
Decrease in depositor's balance |
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What is a credit memorandum? |
Increase in the depositor's balance |
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What is an electronic funds transfer? EFT |
An electronic system that transfers funds without the use of paper checks |
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What is an ATM? Automatic teller machine |
A machine that allows for depositing, withdrawal, and advanced banking transactions |
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What is phishing? |
Fake e-mails that attempt to obtain information about online banking customers |
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What is check truncation? (safekeeping) |
A Procedure whereby checks are not return to the drawer with the bank statement but are instead kept at the bank for a certain amount of time before being first transferred to microfilm and then destroyed. |
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What is a petty cash fund? |
A fund allows payment of small amounts without the writing of checks |
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What is a petty cash voucher? |
A petty cash form to be completed when money is taken out of petty cash |
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What is an auxiliary petty cash record? |
A supplementary record for summarizing petty cash information |
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What is a cash fund? |
A fund made up of various denominations that are used to make change for customers |
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What is Cash short and over? |
The account that recordes cash shortages and overages. If the ending balance is a debit, it is recorded on the income statement as a miscellaneous expense. If it is a credit, it is recorded as miscellaneous income. |
