Bank reconciliation statement (p. 298)
A statement that accounts for all differences between the balance on the bank statement and the book balance of cash.
Blank endorsement (p. 295)
A signature of the payee written on the back of the check that transfers ownership of the check without specifying to whom or for what purpose.
Bonding (p. 291)
The process by which employees are investigated by an insurance company that will insure the business against losses through employee theft or mishandling of funds.
Canceled check (p. 296)
A check paid by the bank on which it was drawn.
Cash (p. 284)
In accounting, currency, coins, checks, money orders, and funds on deposit in a bank.
Cash equivalents (p. 284)
Assets that are easily convertible into unknown amounts of cash.
“Cash Short or Over” account (p. 285)
An account used to record any discrepancies between the amount of currency and coins in the cash register and the amount shown on the audit tape.
Check (p. 293)
A written order signed by an authorized person instructing a bank to pay a specific sum of money to a designated person or business.
Credit memorandum (p. 296)
A form that explains any addition, other than a deposit, to a checking account.
Debit memorandum (p. 296)
A form that explains any deduction, other than a check or other electronic payment transaction, for a checking account.
Deposit in transit (p. 298)
A deposit that is recorded in the cash receipts journal but that reaches the bank too late to be shown on the monthly bank statement.
Deposit slip (p. 295)
A form prepared to record the deposit of cash or checks to a bank account.
Dishonored (NSF) check (p. 296)
A check returned to the depositor unpaid because of insufficient funds in the drawer’s account; also called an NSF (Not Sufficient Funds) check.
Drawee (p. 293)
The bank on which a check is written.
Drawer (p. 293)
The person or firm issuing a check.
Electronic funds transfer (EFT) (p. 302)
An electronic transfer of money from one account to another.
Endorsement (p. 294)
A written authorization that transfers ownership of a check.
Full endorsement (p. 295)
A signature transferring a check to a specific person, firm, or bank.
Negotiable (p. 293)
A financial instrument whose ownership can be transferred to another person or business.
Outstanding checks (p. 298)
Checks that have been recorded in the cash payments journal but have not yet been paid by the bank.
Payee (p. 293)
The person or firm to whom a check is payable.
Petty cash analysis sheet (p. 289)
A form used to record transactions involving petty cash.
Petty cash voucher (p. 288)
A form used to record the payments made from a petty cash fund.
Postdated check (p. 296)
A check dated some time in the future.
