Chapter 5: Cash Controls Vocabulary Review

In accounting, money is generally referred to as​

• asset

• debt

• liability

• cash

Answer explanation

Most businesses make major cash payments by check. However, small cash payments for items such as postage and some supplies may be made from a cash fund kept at the place of business.

A bank account from which a depositor can order payments is called

• checking account

• money market account

• investment account

• savings account

A bank form that lists the checks, currency, and coins that an account holder is adding to the bank account is called

• withdrawal form

• account statement

• transaction receipt

• deposit slip

Cash receipts are recorded in the journal at the time the cash is

• paid

• recorded

• received

• transferred

A signature or stamp on the back of a check that transfers ownership is called

• authorization

• validation

• endorsement

• confirmation

An endorsement that consists only of the endorser's signature is called

• restrictive endorsement

• conditional endorsement

• full endorsement

• blank endorsement

An endorsement that indicates a new owner of a check is called

• voucher

• endorsement

• receipt

• transfer

An endorsement that restricts the further transfer of ownership of a check is called

• restrictive endorsement

• blank endorsement

• full endorsement

• conditional endorsement

A check that cannot be processed because the issuer has invalidated it is called

• canceled check

• overdrawn check

• valid check

• expired check

A check with a future date.

• Expired check

• Canceled check

• Certified check

• Postdated check