Bank Account & Bank Charges – Accounting

Bank Account & Bank Charges – Accounting – chapter 5

In this chapter we discuss types of bank account, bank charges, funds transfer and accounting.


A statement that guides the ethical behavior of a company and its emplyees

code of conduct


A bank account from which payments can be ordered by a depositor

checking account


A signature or stamp on the bakc of a check, transferring ownership

endorsement


An endorsement consisting only of the endorser’s signature

blank endorsement


An endorsement indicating a new owner of a check

special endorsement


An endorsement restricting further transfer of a check’s ownership

restrictive endorsement


A check with a future date one it

postdated check


A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

electronic funds transfer


A check tha a bank refuses to pay

dishonored check


A compterized cash payments system that transfers funds without the use of chekcs, currency, or other paper documents

electronic funds transfer


A bank card that automatically deducts the amount of a purchase from the checking account of te cardholder

debit card


an amount of cash kept on hand and used for making small payments

petty cash


a form showing proof of a petty cash payment

petty cash slip


True or false:
Because cash transactions occur more frquently than other transactions, the chances for making recording errors affecting cash are less

false


true or false:
when a deposit is made in a bank account, the bank issues a receipt

true


true or false:
there are four types of endorsements commonly used: blank, special, orginal, and restrictive

false


true or false:
a check with a blank endorsement can be cashed by anyone who has possession of the check

true


true or false:
when writing acheck, the first step is to prepare the check stub

true


true or false:
most banks do not look at the date the check is written and will withdraw money from the depositor’s account anytime

false


true or false:
the amount of a check is written twice on each check

true


true or false:
a check that contains errors must be marked with the word VOID and another check must be written

true


true or false:
an important aspect of cash control isverifying that the info on a bank statement and a check book are in agreement

true


true or false:
an outstanding check is one that has been issued but not yet reported on a bank statement by the bank

true


true or false banks deduct service charges from customers’ checking accounts without requiring customers to write a check for the amount

true


true or false:
not only do banks charge a fee for hangling a dishonored check, but they also deduct the amount of the check from the account as well

ture


true or false:
the journal entry for a payment on account using electronic funds transfer is exactly the same as when the payment is made by check

false


true or false:
the source document for an electronic funds transfer is a memorandum

true


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