Chapter 9

Restrictive Endorsement

a signature that transfers a check to a specific party for a stated purpose

Full Endorsement

a signature transferring a check to a specific person, firm, or bank

Bank Reconciliation Statement

a statement that accounts for all differences between the balance on the bank statement and the book balance of cash

Endorsement

a written authorization that transfers ownership of a check

Check

a written order signed by an authorized person instructing a bank to pay a specific sum of money to a designated person or business

Electronic Funds Transfer (EFT)

an electronic transfer of money from 1 account to another

Outstanding Checks

checks that have been recorded in the cash payments journal but have not yet been paid by bank

Service Charge

fee charged by bank to cover the costs of maintaining accounts and providing services

Payee

person or firm to whom a check is payable

Drawee

the bank on which a check is written

Drawer

the person or firm issuing a check

Postdated Check

a check dated some time in the future

Canceled Check

a check paid by the bank on which it was drawn

Dishonored Check

a check returned to the depositor unpaid b/c of insufficient funds in drawer's account (NSF check)

Deposit in Transit

a deposit that is recorded in cash receipts journal but that reaches the bank too late to be shown on the monthly bank statement

Negotiable

a financial instrument whose ownership can be transferred to another person or business

Deposit Slip

a form prepared to record the deposit of cash or checks to a bank account

Credit Memorandum

a form that explains any addition other than a deposit to a checking account

Debit Memorandum

a form that explains any deduction other than check from checking account

Blank Endorsement

a signature of the payee written on the back of the check that transfers ownership of the check w/o specifying to whom or for what purpose