Chapter 8 Key Words

Question 1

Casting

Answer 1

An accounting term for adding up a column of figures

Question 2

Cheque

Answer 2

A customer’s written order to their bank to pay a specified sum to a particular bank account

Question 3

Cross-Cast

Answer 3

Adding up totals of a number of columns to check that they add back to the overall total

Question 4

Direct Debit

Answer 4

A method of making payments direct from the bank where payments are for variable amounts and/or varying time intervals

Question 5

Overdraft

Answer 5

A negative balance in the business bank account

Question 6

Primary records

Answer 6

Receipts, invoices, remittances and other documents which are retained and used to update the cash book on a regular basis

Question 7

Standing Order

Answer 7

Method of Making regular payments directly from the bank account of the customer to the bank account of the supplier

Question 8

Two-Column Cash Book

Answer 8

An analysed cash book containing cash and bank columns, plus analysis columns including VAT