Actg Unit 2 Vocab

Front 1

ACH Transaction

Back 1

electronic funds transfer between an account at one institution and an account at another institution

Front 2

Account

Back 2

registry for tracking monetary values, by some kind of categorization

Front 3

Accounting

Back 3

field involved with tracking the movement in, out, and between various categories and determination of balances in those categories

Front 4

Account Holder

Back 4

owner of an account at a financial institution

Front 5

Actual Balance

Back 5

amount of money owned by the account holder in a demand account at a financial institution

Front 6

Automated Clearing House (ACH)

Back 6

national network and infrastructure utilized by financial institutions to transfer money to and from accounts between institutions

Front 7

Automated Teller Machine (ATM)

Back 7

machine designed to provide digital access to an account at a financial institution

Front 8

Bank

Back 8

particular kind of financial institution which provides certain services to the general public under government regulation

Front 9

Bank Balance

Back 9

bottom-line figure printed on the monthly bank statement, showing the amount on deposit at the end of the period

Front 10

Bank Fees

Back 10

money that must be paid to a financial institution for services rendered, or for the right to access such services

Front 11

Bank Reconciliation

Back 11

process of determining the actual balance in a bank account by adjusting the book balance and the bank balance

Front 12

Book Balance

Back 12

balance shown on the records of an account holder, showing how much money is on deposit

Front 13

Bounced Check

Back 13

when the owner of a checking account writes a check for an amount of money greater than the amount in the account

Front 14

Cash

Back 14

can mean a combination of currency and coins at hand, or the combination of currency and coins plus all demand deposists owned by the organization at the moment

Front 15

Cashing a Check

Back 15

the payee signs the back of the check given to them by the account holder, and presents it to the bank in exchange for currency

Front 16

Certificate of Deposit (CD)

Back 16

time-deposit account carrying maturity period, anywhere from 3 months to 5 years

Front 17

Check

Back 17

piece of paper authorizing a financial institution to transfer ownership of money from a demand deposit account to someone else

Front 18

Check Endorsement

Back 18

payee must sign the back of a check to verify identity before cashing or depositing a check

Front 19

Check Register

Back 19

list of checks written by the account holder of a checking account

Front 20

Checking Account

Back 20

most common demand deposit account

Front 21

Cleared Check

Back 21

holder issues a check to a third party to give them money, third party puts the check in their account, thier bank uses ACH system to present check to holders bank, and holders bank pays the money

Front 22

Compound Interest

Back 22

account earns interest, and interest is added to the balance, the following period's interest will be calculated using the new balance

Front 23

Credit Union

Back 23

type of financial institution that are chartered to serve a particular subset of the population

Front 24

Currency

Back 24

refers to physical and tangible articles used to define, measure, and represent units of value within an economy

Front 25

Debit Card

Back 25

small card equipped with a magnetic stripe which allows an account owner to access money in the account electronically

Front 26

Demand Deposit Account

Back 26

account where the owner places money, and the institution is authorized to disburse the money to the owner or even directly to third parties on demand by authorization of the owner

Front 27

Deposit

Back 27

act by the owner of money where the owner transfers custody, not ownership, of money to a financial institution

Front 28

Deposit-in-Transit

Back 28

money is deposited to a financial institution, but not yet recorded by the bank

Front 29

Direct Deposit

Back 29

deposit made electronically, without using a physical manifestation of currency

Front 30

EFT Deposit

Back 30

electronic funds transfer deposit, where one institution transfers ownership of money to another electronically

Front 31

Electronic Bill Payment

Back 31

EFT withdrawal, owner uses electronic directions to disburse money from the account to a third party without physical currency

Front 32

Funds

Back 32

specified quantity of money, usually set aside for a purpose

Front 33

Instrument

Back 33

piece of paper providing evidence of ownership of financial resources

Front 34

Interest

Back 34

payment to depositor by an institution, in return for depositor providing the money to the institution

Front 35

Interest Accrued

Back 35

insterest that has been calculated and owed to the owner of an interest-bearing account, but not added to account balance yet

Front 36

Interest-Bearing

Back 36

deposit account which pays depositor interest

Front 37

Investment

Back 37

any place that an investor can place money, with hope of later receiving their money back along with a return

Front 38

Maturity

Back 38

date at which a timed deposit account can be redeemed for cash

Front 39

Money

Back 39

any medium of exchange which is universally accepted within an economy, represents value in discrete units defined by economy, and can be freely converted into and out of the economy's currency

Front 40

Money Market

Back 40

market of very short-term investment instruments

Front 41

Money Market Account

Back 41

demand deposit account at an institution where the depositor's money is invested in the commercial paper, government bonds, and other marketable investment instruments which aren't currency or cash

Front 42

Non-Interest-Bearing

Back 42

account which does not pay depositor interest

Front 43

Not Sufficient Funds (NSF)

Back 43

owner of account directs the financial institution to disburse a given amount of money to third party, but there is not enough money in the account

Front 44

Outstanding Check

Back 44

check that has been properly written and signed, and recorded in the books of the holder, but has not yet cleared the bank

Front 45

Payee

Back 45

third party of a transaction where they recieve money from a holder of a demand deposit account

Front 46

Returned Check

Back 46

owner of a checking account writes a check over the amount in the account

Front 47

Savings Account

Back 47

second most common demand deposit account, with far fewer transactions

Front 48

Signature Card

Back 48

paper identifying and specifying the person who is the authority to desburse money from an account

Front 49

Stop Payment

Back 49

direction to the bank not to honor a check which may have been issured in error, stolen, or gone missing

Front 50

Taxpayer Identification Number (TIN)

Back 50

9 digit number which is their social security numer for individuals, and an organizational id number for organizations

Front 51

Time Deposit Account

Back 51

account which depositor promises to leave the money on deposit in the account for a lengthy period of time, 30 days to many years

Front 52

Withdrawal

Back 52

act by owner of an account at an institution where the owner directs the institution to disburse money from their account