Bank reconciliation The process of comparing the bank's balance of an account with the company's balance and explaining any differences to make them agree. Bank service charge A fee charged by a bank for the use of its services. Bank statement A monthly statement from the bank that shows the depositor's bank transactions and balances. Bonding Obtaining insurance protection against misappropriation of assets by employees. Cash Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository. Cash equivalents Short-term, highly liquid investments that can be converted to a specific amount of cash. Check A written order signed by a bank depositor, directing the bank to pay a specified sum of money to a designated recipient. Compensating balances Minimum cash balances required by a bank in support of bank loans. Deposits in transit Deposits recorded by the depositor but not yet been recorded by the bank. Electronic funds transfer (EFT)
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