Accounting Chapter 5 & 6 Review
Extend
Bringing account from trial balance to Income Statement or the Balance Statement
Adjustment
Change; account - amount on hand= adjustment
Check receipt
Check stub/ record (Have check number, date, to whom, purpose...)
Custodian
People who manage petty cash
Balance statement
every account that is ABOVE the income summary; Assets & Liabilities & Owner's Equity
Income statement
every account that is UNDER the income summary; Sales & Expenses & Revenue
Petty cash
small account of cash on hand
Canceled check
is a check that has cleared the depositor's account and has been marked "canceled" by the bank.
Voided check
is a check that has the word "VOID" clearly written on it, voiding a check "disables" the check so that it cannot be used like a blank check.
Cash over
on hand money is greater than what is recorded
Cash short
on hand money is lesser than what is recorded
Outstanding withdraw
Bank statement is higher than check register
Journal Adjusting Entries & Ledger
1. Adjusting Entries 2. Enter in order (a-b & assets to expenses) 1. Making ledger for every adjustment 2. Record information base on the entries
Net Income
Credits > Debits (In Income Statement)
Net Loss
Debits > Credits (In Income Statement)
Reconciliation
Everything is balanced
Deposit slips
Prepares each time cash or checks are placed in a bank account. It is a small written form that is sometimes used to deposit funds into a bank account.A deposit slip indicates the date, the name of the depositor, the depositor's account number, and the amounts of checks, cash, and coin being deposited.
Check empty space
Put a line through it (security purpose)
Electronic funds transfer
Transfer that does not use paper document
Checking account
a bank account from which payments can be ordered by a depositor.
Bank statement
a monthly report of deposits, withdrawals, and bank balances sent to a depositor by a bank.
Endorsement
a signature or stamp on the back of a check transferring ownership.
Fiscal period
accounting period; that a business summarizes its financial information and reports its financial performance.
Balance brought forward (check stub)
amount brought from previous transaction
Balance carried forward (check stub)
amount carried to the next transaction
Blank endorsement (least restricted)
an endorsement consisting only of the endorser's signature.
Special endorsement (joint account)
an endorsement indicating a new owner of a check.
Restrictive endorsement (most restricted)
an endorsement restricting further transfer of a check's ownership.
Dishonored check
check that a bank refuses to pay, due to the lack of fund / Overdraft/ non-sufficient funds
Check stub
date, amount, to whom, purpose