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