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Banking Essentials & Financial Summaries for Beginners

Learn about checking accounts, endorsements, postdated checks, bank statements, electronic funds transfers, and petty cash. Understand fiscal periods, trial balances, income statements, and adjustments for financial reports.

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Banking Essentials & Financial Summaries for Beginners

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  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

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