Chapter 6 & 7 Vocab

1. Chapter 6 & 7 Vocab

2. List of Words for Chapter 6 Checking account Endorsement Blank endorsement Special endorsement Restrictive endorsement Postdated check Bank statement Dishonored check Electronic funds transfer Debit card Petty cash Petty cash slip

3. Checking Account~ A bank account from which payments can be ordered by a depositor

4. Endorsement~ A signature or stamp on the back of a check transferring ownership

5. Blank Endorsement~ An endorsement consisting only of the endorser’s signature

6. Special Endorsement~ An endorsement indicating a new owner of a check

7. Restrictive Endorsement~ An endorsement restricting further transfer of a check’s ownership

8. Postdated Check~ A check with a future date on it

9. Bank Statement~ A report of deposits, withdrawals, and bank balances sent to a depositor by a bank

10. Dishonored Check~ A check that a bank refuses to pay

11. Electronic Funds Transfer~ A computerized cash payments system that uses electronic impulses to transfer funds

12. Debit Card~ A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account of the cardholder

13. Petty Cash~ An amount of cash kept on hand and used for making small payments

14. A form showing proof of a petty cash payment Petty Cash Slip~

15. List of Words for Chapter 7 • Fiscal period • Work sheet • Trial balance • Adjustments • Income statement • Net income • Net loss

16. Fiscal Period~ The length of time for which a business summarizes and reports financial info.

17. Work Sheet~ A columnar accounting form used to summarize the general ledger information needed to prepare financial statements

18. Trial Balance~ A proof of the equality of debits and credits in a general ledger

19. Adjustments~ Changes recorded on a work sheet to update general ledger accounts at the end of a fiscal period

20. Income Statement~ A financial statement showing the revenue and expenses for a fiscal period

21. Net Income~ The difference between total revenue and total expenses when total revenue is greater

22. Net Loss~ The difference between total revenue and total expenses when total expenses is greater