Key Terms
The key terms used in the unit are listed below:
- Internal control: Internal controls over cash are sometimes regarded as a means to prevent fraud and theft.
- External control: External controls are measures and procedures adopted outside the business to protect cash and other assets.
- Protecting cash: Protecting cash is essential for the success or survival of every organization.
- Signature card: A signature card contains the signatures of those who are authorized to draw checks on a specific account.
- Deposit slip: The deposit slip contains a detailed record of the deposit made by the depositor.
- ABA Number: The American Bankers Association (ABA) number is the fractional number printed in the upper right corner of a check, just below the check number.
- Endorsement: An endorsement is an authorized signature written or stamped on the back of a check to transfer the ownership of the check.
- Drawer: The person who signs the check is the drawer.
- Drawee: The bank on which the check is written is the drawee.
- Voiding a check: Voiding a check means canceling the check.