| Question |
Answer |
| External Controls |
the measures and procedures provided outside the business to protect cash and other assets. |
| Check |
a written order from a depositor telling the bank to pay a stated amount of cash to the person or business named on the check. |
| Checking Account |
Allows a person or business to deposit cash in a bank and to write checks against the account balance. |
| Depositor |
a person or business that has cash on deposit in a bank. |
| Signature Card |
a card containing the signature(s) of the person(s) authorized to write checks on a checking account. |
| Internal controls |
Steps a business takes to protect cash (for example, limiting the number of persons handling cash). |
| Deposit slip |
a bank form listing the cash and checks to be deposited. |
| drawee |
the bank on which a check is written. |
| drawer |
the person who signs a check. |
| Endorsement |
An authorized signature written or stamped on the back of a check representing receipt and deposit or payment of check. |
| Payee |
The person or business to whom a check is written or a note is payable. |
| Restrictive endorsement |
a check endorsement that restricts or limits how a check may be handled (for example, "For Deposit Only"). |
| Personal Banking Controls |
controls put in place by a bank to safeguard a customer's money. |
| bank statement |
An itemized record of all the transactions in a depositor's account over a given period, usually a month. |
| canceled checks |
Checks paid by the bank and deducted from the depositor's account. |
| Reconciling the bank statement |
the process of determining any differences between a bank statement balance and a checkbook balance. |
| Voiding a check |
Canceling a check by writing the word "Void" across the front in ink. |
| Bank service charge |
a fee the bank charges for maintaining bank records and processing bank statement items for the depositor. |
| Electronic Funds Transfer System |
Allows banks to transfer funds among accounts quickly and accurately without the exchange of checks. |
| NSF check |
A check returned to the depositor by the bank because there are not sufficient funds in the drawer's checking account to cover the check. |
| Outstanding checks |
Checks that have been written but have not yet been presented to the bank for payment. |
| outstanding deposits |
Deposits that have been made and recorded in the checkbook but do not appear on the bank statement. |
| Stop payment order |
a demand by the drawer that the bank not honor a certain check. |
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