Cash Controls

Question 1

A collection of rules and procedures set by a company to minimize errors, fraudulent behavior, and safeguard assets.

Answer 1

Internal Controls

Question 2

All policies and procedures implemented to control and safeguard cash and cash related activities

Answer 2

Cash Controls

Question 3

the process of accounting for and explaining any differences between cash balance on an organizations bank statement and the cash balance on its balance sheet

Answer 3

Bank Reconciliation

Question 4

a financial institution that is licensed to collect and store deposits and lend money to other individuals and/or organizations

Answer 4

Bank

Question 5

a check with only the payee signature and no further instructions

Answer 5

Blank Endorsement

Question 6

a form of payment that is dated and signed by the payor, directing the payors bank to pay a specific amount of money to the person the check is written, that is to the payee

Answer 6

Check

Question 7

a deposit account that allows for easy and frequent cash deposits and withdrawals

Answer 7

Checking Account

Question 8

a plastic card that is an electronic method of payment where the funds are deducted directly from the card owners bank account

Answer 8

Debit Card

Question 9

money securely stored at a bank, usually for an on demand withdrawals, and to earn interest

Answer 9

Deposit

Question 10

a form that outlines the sources and amounts of money being deposited into a bank account

Answer 10

Deposit Slips

Question 11

an electronic transfer of money

Answer 11

EFT

Question 12

a signature authorizing the legal transfer of funds between parties

Answer 12

Endorsement

Question 13

a form of endorsement where a payee assigns a check over to a third party, also called a special endorsement

Answer 13

Endorsement in Full

Question 14

The difference between the interest banks earn on their loans, and the interest they pay to their depositors

Answer 14

Net Interest Margin

Question 15

A check signed by the payee with specific instructions.

Answer 15

Restrictive Endorsement

Question 16

An interest-bearing deposit account that places limitations on cash withdrawals.

Answer 16

Savings Account

Question 17

A small amount of cash stored on hand by a company to pay for small, nominal expenses.

Answer 17

Petty Cash

Question 18

The report used to track and reconcile petty cash transactions.
Great work!

Answer 18

Petty Cash Report

Question 19

A monthly report prepared by a bank for the account holder outlining all account transactions in a given month.

Answer 19

Bank Statement

Question 20

A check that has been processed and cleared by the issuing bank so that the check cannot be used again.

Answer 20

Canceled Check

Question 21

The process of accounting for and explaining any differences between the cash balance on an organization’s bank statement and the cash balance on its balance sheet.

Answer 21

Bank Reconciliation

Question 22

The status given to an account that does not have enough funds to cover its expenditures.

Answer 22

Non-Sufficient Funds (or NSF)