Chapter 5 Vocabulary

Question 1

an endorsement consisting only of the endorser’s signature

Answer 1

blank endorsement

Question 2

a signature or stamp on the back of a check transferring ownership

Answer 2

endorsement

Question 3

a bank account from which payments can be ordered by a depositor

Answer 3

checking account

Question 4

a statement that guides the ethical behavior of a company and its employees

Answer 4

code of conduct

Question 5

a check that a bank refuses to pay

Answer 5

dishonored check

Question 6

a report of deposits, withdrawals, and bank balances sent to a depositor by a bank

Answer 6

bank statement

Question 7

a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder

Answer 7

debit card

Question 8

a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents

Answer 8

electronic funds transfer (EFT)

Question 9

an amount of cash kept on hand and used for making small payments

Answer 9

petty cash

Question 10

a check with a future date on it

Answer 10

postdated check

Question 11

a form showing proof of a petty cash payment

Answer 11

petty cash slip

Question 12

an endorsement restricting further transfer of a check’s ownership

Answer 12

restrictive endorsement

Question 13

an endorsement indicating a new owner of a check

Answer 13

special endorsement