Cash Controls Flashcards
A collection of rules and procedures set by a company to minimize errors, fraudulent behavior, and safeguard assets.
Internal Controls
All policies and procedures implemented to control and safeguard cash and cash related activities
Cash Controls
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
Bank Reconciliation
a financial institution that is licensed to collect and store deposits and lend money to other individuals and/or organizations
Bank
a check with only the payee signature and no further instructions
Blank Endorsement
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
Check
a deposit account that allows for easy and frequent cash deposits and withdrawals
Checking Account
a plastic card that is an electronic method of payment where the funds are deducted directly from the card owners bank account
Debit Card
money securely stored at a bank, usually for an on demand withdrawals, and to earn interest
Deposit
a form that outlines the sources and amounts of money being deposited into a bank account
Deposit Slips
an electronic transfer of money
EFT
a signature authorizing the legal transfer of funds between parties
Endorsement
a form of endorsement where a payee assigns a check over to a third party, also called a special endorsement
Endorsement in Full
The difference between the interest banks earn on their loans, and the interest they pay to their depositors
Net Interest Margin
A check signed by the payee with specific instructions.
Restrictive Endorsement
An interest-bearing deposit account that places limitations on cash withdrawals.
Savings Account
A small amount of cash stored on hand by a company to pay for small, nominal expenses.
Petty Cash
The report used to track and reconcile petty cash transactions.
Great work!
Petty Cash Report
A monthly report prepared by a bank for the account holder outlining all account transactions in a given month.
Bank Statement
A check that has been processed and cleared by the issuing bank so that the check cannot be used again.
Canceled Check
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.
Bank Reconciliation
The status given to an account that does not have enough funds to cover its expenditures.
Non-Sufficient Funds (or NSF)
