Lesson 8-10 Flashcards
important asset
cash
The simplest bank account
savings account
booklet used to record bank transactions on a savings account. It contains a chronological record of deposits, withdrawals, and interest earnings.
passbook
for making transactions in Automated Teller Machines (ATM).
ATM cards
linked with the VISA or Mastercard networks that allow depositors to use their cards to make payments in various establishments.
Debit cards
like a savings account with an added feature - the depositor can issue bank checks.
checking account
acceptable form of payment. It allows depositors to pay large sums using one sheet of paper instead of carrying currencies.
bank check
These funds are managed by professional fund managers and are invested in various financial instruments such as money market securities, bonds, and equities
unit investment trust funds (UITF)
There is a corresponding bank form for almost every transaction with the bank
Bank Forms
documents the deposit transaction. It is a bank form filled out by the depositor
Deposit Slip
There are two kinds of deposit slip:
cash deposit slip and check deposit slip
validated by the teller that accepts the deposit
bank deposit slip
receipt printed on the deposit slip to signify that the deposit was received by the bank
Validation
documents the withdrawal from a passbook account. It is a bank form filled out by the account holder
Withdrawal slip
indicates the account name as well as the account number from which account he/she wants to make a withdrawal.
account holder
It is a bank form filled out by the account holder that instructs the bank to pay the designated payee indicated on the check
Bank Check
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.
bank statement
It is therefore essential for us to know how much cash the company can use for its operations
Bank Reconciliation
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.
Non-sufficient fund (NSF
It is one that is easily misappropriated if not properly safeguarded.
Cash
should be made through bank checks and processed through the voucher system.
Cash payment
It earns minimal interest and may have a minimum balance requirement. Some savings account come with passbooks, ATM, or debit cards.
simplest bank account
like a savings account that allows withdrawals through the issuance of bank checks.
A checking account
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.
Time deposit accounts
bank form filled out by the depositor to document a deposit transaction.
Deposit slip
the procedure to reconcile the unadjusted bank and book balances to the
correct cash balance.
Bank reconciliation
detailed transaction history of the bank account over the reporting period.
bank statement
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
documents the withdrawal from a passbook account
Withdrawal slip
refers to additions and deductions from the account that were not initiated by the depositor.
Debit and credit memo
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.
Outstanding checks
unintentional mistakes. It should be carefully analyzed to determine the proper adjustment to the bank reconciliation.
Errors
used to document business transactions.
Business forms
very important in a business
Documentation
a picture of a business transaction. It is evidence of the occurrence of a transaction. It also describes the details of the transaction.
A business form
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.
Receiving report (RR)
prepared for each check. It documents the process for the preparation, verification, and authorization of check payments.
check voucher
to document the preparation, verification, and authorization of journal entries to be recorded in the general journal.
journal voucher
used both inside and outside the company.
External business forms
form used by the buyer to communicate his exact orders to the seller
Purchase Order
evidence of delivery. It is issued by the seller. The form contains Information on the quality and quantity of items delivered.
Delivery receipt
a communication from the seller to the buyer, It documents the amount of payment that the seller is claiming.
sales invoice
evidence of payment. Therefore, a buyer who claims that an account has been settled must be able to show an
Official receipts
lists down the seller’s transactions with the buyer over a specific period, normally one month
billing statement
used to document business transactions
classified into internal and external forms
Business forms
used only within the company.
Internal business forms
used to document the quality and quantity of items received by the personnel from the suppliers.
Receiving report
documents the process for the preparation and authorization of check payments of the company’s bills.
Check voucher
used both inside and outside the company
External business forms
form used by the buyer to communicate his exact orders to the seller
Purchase order
issued by the seller and contains information on the quality and quantity
of items delivered.
Delivery receipt
documents the amount of payment that the seller is claiming based on items delivered and agreed upon price.
Sales invoice
issued when the bank honors the check
evidence of payment
official receipt
