A number assigned by the American Bankers Association to a bank. First number indicates city/state bank is located. Second indicates Federal Reserve District checks are cleared through.
Machines that enable depositors to make deposits, withdrawls, and transfers with their bank card.
Process by which an accountant determines whether/why there is a difference in the bank statement and the balance of cash in the general ledger in order to determine true cash balance.
A statement periodically sent to drawer/depositor of a checking account listing the deposits received and checks paid by the bank, credit memos, debit memos, electronic transactions, and beginning/ending balances.
Endorsement in which the payee of a check simply signs their name on the back of the check. No restrictions attached.
Checks issued by depositor which have been cleared by the bank and listed on the bank statement. Called cancelled because they have already been paid out.
Seperate held reserves of cash set aside for a specific purpose.
A cash fund used by a buisness to make change for customers who pay cash for good/services.
Payments collected by the bank and added to customers bank account in the form of a credit memorandum.
Varieties of coins and currency
Deposit in Transit
A deposit not recorded on the bank statement because the deposit was made between the time of the banks closing date for compiling items for its statement.
Printed forms provided by the bank on which customers can list all deposited items.
The party who writes the check.
Electronic Funds Transfer (EFT)
A transfer of funds initiated through an electronic terminal. I.e. Telephone
The process by which the payee transfers the ownership of the check to another authority. This gives the bank legal title to collect payment from the drawer of the check and prevents the check from being stolen. Sets guidelines for deposit.
Mistakes made by the customer or bank.
Amount earned from lending money to another person/businiess.
Procedures built into the accounting system in order to (1)protect assests against fraud/waste, (2) provide accurate accounting data, (3) promoteefficient operations, and (4) encourage adherence to management polocies.
Ledger Balance of Cash
Balance of Cash account in the general ledger before reconciliation.
Magnetic Ink Character Recognition. Characters used by the bank to print the numbers of the depositor's account and bank's numbers at the bottom of checks and deposit slips. They are read by electronical equipment.
NSF (not sufficient funds) Check
Check drawn against an account in which there are not sufficient funds and returned by the payee's bank to the drawer's due to nonpayment.
Checks that have been written by the drawer and deducted on their personal records, but not the bank's at the time of the bank statement.
Person to whom the check is payable.
Petty Cash Fund
A cash fund used to make small, immediate payments.
Petty Cash Payments Record
A record indicating the amount of each petty cash voucher, the accounts to which it should be changed, and the purpose of the expidenture.
Petty Cash Voucher
A form stating who requested the cash from the petty cash fund, signed by the person in charge of the fund, the person to received the fund, and indicating the purpose of the cash use.
A written promise to pay a definite sum at a definite future time.
An endorsement in which the payee of a check avoids future liability, in case the drawer of the check does not have sufficient funds to cover the check, by adding the words "Pay to the order of" and "without recourse" to the endorsement on the back of a check.
An endorsement, such as "Pay to the order of (name of bank), for deposit only" that restricts/limits further negotiation of a check.
Fee bank chargers for handling checks/collections, etc. In form of a debit memorandum.
Form a depositor signs to give a bank a copy of the official signatures of any persons authorized to sign checks. used to verify check signatures.