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
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