ACC: Chapter 11: Vocabulary
Terms
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- outstanding cheques
- cheques that have been written but have not yet been presented to the bank for payment
- reconciling the bank statement
- the process of determining any differences between the bank statement and the chequebook
- outstanding deposits
- deposits that have been made and are recorded in the chequebook but not appear on the bank statement
- drawee
- the bank on which the cheque is written
- depositor
- a person or business that has cash on deposit in a bank
- canceled cheques
- when a bank sends a statement to a depositor, it may return the cheques paid by the bank and deducted from the depositor's account
- external controls
- the measures and procedures provided outside the business to protect cash and other assets
- restrictive endorsement
- limits, or restricts, how a cheque may be handled
- signature card
- to open a chequing account, a business owner fills one out and deposits cash in the bank
- deposit slip
- a bank form listing the cash and cheques to be deposited
- cheque
- a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on it
- electronic funds transfer system
- allows banks to transfer funds among accounts quickly and accurately without the exchange of cheques
- endorsement
- an authorised signature written or stamped on the back of a cheque representing a promise to pay
- voiding a cheque
- writing the word "Void" in large letters across the front of a cheque
- payee
- the person or business to whom a cheque is written
- bank statement
- an itemised record of all the transactions in a depositor's account over a given period, usually a month
- internal controls
- the steps the business takes to protect cash and other assets
- NSF cheque
- a cheque returned to the depositor by the bank because there are not sufficient funds in the drawer's chequing account to cover the cheque
- chequing account
- allows a person or business to deposit cash in a bank and to write cheques against the account balance
- stop payment order
- a demand by the drawer that the bank not honour a certain cheque
- drawer
- the person who signs a cheque
- bank service charge
- a fee the bank charges for maintaining bank records and processing bank statement items for the depositor