Lesson 8-10

Question 1

important asset

Answer 1

cash

Question 2

The simplest bank account

Answer 2

savings account

Question 3

booklet used to record bank transactions on a savings account. It contains a chronological record of deposits, withdrawals, and interest earnings.

Answer 3

passbook

Question 4

for making transactions in Automated Teller Machines (ATM).

Answer 4

ATM cards

Question 5

linked with the VISA or Mastercard networks that allow depositors to use their cards to make payments in various establishments.

Answer 5

Debit cards

Question 6

like a savings account with an added feature - the depositor can issue bank checks.

Answer 6

checking account

Question 7

acceptable form of payment. It allows depositors to pay large sums using one sheet of paper instead of carrying currencies.

Answer 7

bank check

Question 8

These funds are managed by professional fund managers and are invested in various financial instruments such as money market securities, bonds, and equities

Answer 8

unit investment trust funds (UITF)

Question 9

There is a corresponding bank form for almost every transaction with the bank

Answer 9

Bank Forms

Question 10

documents the deposit transaction. It is a bank form filled out by the depositor

Answer 10

Deposit Slip

Question 11

There are two kinds of deposit slip:

Answer 11

cash deposit slip and check deposit slip

Question 12

validated by the teller that accepts the deposit

Answer 12

bank deposit slip

Question 13

receipt printed on the deposit slip to signify that the deposit was received by the bank

Answer 13

Validation

Question 14

documents the withdrawal from a passbook account. It is a bank form filled out by the account holder

Answer 14

Withdrawal slip

Question 15

indicates the account name as well as the account number from which account he/she wants to make a withdrawal.

Answer 15

account holder

Question 16

It is a bank form filled out by the account holder that instructs the bank to pay the designated payee indicated on the check

Answer 16

Bank Check

Question 17

detailed transaction history of the account over the reporting period

It is a report prepared by the bank for those accounts that do not have passbooks.

Answer 17

bank statement

Question 18

It is therefore essential for us to know how much cash the company can use for its operations

Answer 18

Bank Reconciliation

Question 19

refer to checks received and deposited by the account holder that are dishonored by the issuing bank because the issuer does not have enough funds on his checking account to cover the check.

Answer 19

Non-sufficient fund (NSF

Question 20

It is one that is easily misappropriated if not properly safeguarded.

Answer 20

Cash

Question 21

should be made through bank checks and processed through the voucher system.

Answer 21

Cash payment

Question 22

It earns minimal interest and may have a minimum balance requirement. Some savings account come with passbooks, ATM, or debit cards.

Answer 22

simplest bank account

Question 23

like a savings account that allows withdrawals through the issuance of bank checks.

Answer 23

A checking account

Question 24

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 deposit rates.

Answer 24

Time deposit accounts

Question 25

bank form filled out by the depositor to document a deposit transaction.

Answer 25

Deposit slip

Question 26

the procedure to reconcile the unadjusted bank and book balances to the
correct cash balance.

Answer 26

Bank reconciliation

Question 27

detailed transaction history of the bank account over the reporting period.

Answer 27

bank statement

Question 28

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.

Answer 28

bank check

Question 29

documents the withdrawal from a passbook account

Answer 29

Withdrawal slip

Question 30

refers to additions and deductions from the account that were not initiated by the depositor.

Answer 30

Debit and credit memo

Question 31

refer to checks issued and delivered to the designated payee but have not yet cleared the bank. The correct adjustment is to deduct the amount of the outstanding checks from the unadjusted bank balance.

Answer 31

Outstanding checks

Question 32

unintentional mistakes. It should be carefully analyzed to determine the proper adjustment to the bank reconciliation.

Answer 32

Errors

Question 33

used to document business transactions.

Answer 33

Business forms

Question 34

very important in a business

Answer 34

Documentation

Question 35

a picture of a business transaction. It is evidence of the occurrence of a transaction. It also describes the details of the transaction.

Answer 35

A business form

Question 36

internal report prepared by the buyer’s personnel in charge of receiving deliveries (Figure 1). It is used to document the quality and quantity of items received by the personne from the suppliers.

Answer 36

Receiving report (RR)

Question 37

prepared for each check. It documents the process for the preparation, verification, and authorization of check payments.

Answer 37

check voucher

Question 38

to document the preparation, verification, and authorization of journal entries to be recorded in the general journal.

Answer 38

journal voucher

Question 39

used both inside and outside the company.

Answer 39

External business forms

Question 40

form used by the buyer to communicate his exact orders to the seller

Answer 40

Purchase Order

Question 41

evidence of delivery. It is issued by the seller. The form contains Information on the quality and quantity of items delivered.

Answer 41

Delivery receipt

Question 42

a communication from the seller to the buyer, It documents the amount of payment that the seller is claiming.

Answer 42

sales invoice

Question 43

evidence of payment. Therefore, a buyer who claims that an account has been settled must be able to show an

Answer 43

Official receipts

Question 44

lists down the seller’s transactions with the buyer over a specific period, normally one month

Answer 44

billing statement

Question 45

used to document business transactions

classified into internal and external forms

Answer 45

Business forms

Question 46

used only within the company.

Answer 46

Internal business forms

Question 47

used to document the quality and quantity of items received by the personnel from the suppliers.

Answer 47

Receiving report

Question 48

documents the process for the preparation and authorization of check payments of the company’s bills.

Answer 48

Check voucher

Question 49

used both inside and outside the company

Answer 49

External business forms

Question 50

form used by the buyer to communicate his exact orders to the seller

Answer 50

Purchase order

Question 51

issued by the seller and contains information on the quality and quantity
of items delivered.

Answer 51

Delivery receipt

Question 52

documents the amount of payment that the seller is claiming based on items delivered and agreed upon price.

Answer 52

Sales invoice

Question 53

issued when the bank honors the check

evidence of payment

Answer 53

official receipt