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chapter 5
accounting
33
Accounting
12th Grade
12/08/2009

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Cards

Term
code of conduct
Definition
a statement that guides the eithical behavior of a company and its employees
Term
checking account
Definition
a bank account from which payments can be ordered by a depositor
Term
endorsement
Definition
a signature or stamp on the back of a check, transferring ownership
Term
blank endorsement
Definition
an endorsement consisting only of the endorser's signature
Term
special endorsement
Definition
an endorsement indicating a new owner of a check
Term
restrictive endorsement
Definition
an endorsement resticting further transfer of a check's ownership
Term
postdated check
Definition
a check with a future date on it
Term
bank statement
Definition
a report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Term
dishonored check
Definition
a check that abank refuses to pay
Term
electric funds transfer (eft)
Definition
a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
Term
debit card
Definition
a bank card that automatically deducts that amount of a purchase from the checking account of the carholder
Term
petty cash
Definition
an amount of cash kept on hand and used for making small payments
Term
petty cash slip
Definition
a form showing proof of a petty cash payment
Term
because cash transactions occur more frequently than other transactions, the chances for making recording errors affecting cash are less. true or false?
Definition
false
Term
when a deposit is made in a bank account, the bank issues a receipt. true or false?
Definition
true
Term
there are four types of endorsements commonly used: blank, special, original, and restrictive. true or false?
Definition
false
Term
a check with a blank endorsement can be cashed by anyone who has possession of the check. true or false?
Definition
true
Term
when writing a check, the first step is to prepare the check stub. true or false?
Definition
true
Term
most banks do not look at the date the check is written and will withdraw money from the depositor's account anytime. true or false?
Definition
false
Term
the amount of a check is written twice on each check. true or false?
Definition
true
Term
a check that contains errors must be marked with the word VOID and another check must be written. true or false?
Definition
true
Term
an important aspect of cash control is verifying that the information on a bank statement and a checkbook are in agreement. true or false?
Definition
true
Term
an outstanding check is one that has been issued but not yet reported on a bank statement by the bank. true or false?
Definition
true
Term
banks deduct service charges from customers checking accounts without requiring customers to write a check for the amount. true or false?
Definition
true
Term
not only do banks charge a fee for handling a dishonored check, but they also deduct the amount of the check from the account as well. true or false?
Definition
true
Term
the journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by check. true or false?
Definition
false
Term
the source document for an electronic funds transfer is a memorandum. true or false?
Definition
true
Term
the source document for a debit card purchase is a memorandum. true or false?
Definition
true
Term
techknow consulting maintains a petty cash fund for making large cash payments without writing checks. true or false?
Definition
false
Term
businesses use petty cash when writing a check is not time or cost effective. true or false?
Definition
true
Term
a memorandum is the source document for the entry to record establishing a petty cash fund. true or false?
Definition
false
Term
anytime a payment is made from the petty cash fund, a petty cash slip is prepared showing proof of a petty cash payment. true or false?
Definition
true
Term
when the petty cash fund is replenished, the balance of the petty cash account increases. true or false?
Definition
false
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