chap 9 Flashcards
simplest bank account and earns minimal interest and may have a minimum balance
requirement. Also come with passbooks, ATM, or debit cards.
Savings account
is like savings account that allows withdrawals through the issuance of bank checks
checking account
are investment placements wherein the depositor agrees not to withdraw the funds over
the contracted period in exchange for fixed interest rates, which are higher than the
deposit rates.
Time Deposit accounts
allows investors to indirectly invest in stocks and bonds.
unit investment trust funds
Different kinds of bank forms
- Savings account
- Checking account
- Time deposit account
- unit investment trust funds
Is a bank form filled out by the deposit to document a deposit transaction.
deposit slip
Document the withdrawal from a passbook account.
withdrawal slip
Is a bank form filled out by the account holder that instructs the bank to pay the specific amount to the designated payee on the date as indicated on the check.
bank check
Is a detailed transaction history of the bank account over the reporting period.
bank statement
Is the procedure to reconcile the unadjusted bank and book balances to the correct cash
balance.
bank reconcilliation
Diif kinds of bank forms
- Deposit slip
- withdrawal slip
- bank check
- bank statement
- bank reconciliation
Timing differences
- reconciliating items on the bank side
2.reconciliating items on the book side
Outstanding checks * Deposit in transit
reconciliating items on the bank side
- Collection received by the bank * Debit and credit memo * Non-sufficient fund (NSF) check
reconciliating items on the book side
are unintentional mistakes. It should be carefully analyzed to determine the proper
adjustment to the bank reconciliation.
errors
