Chapter 11 vocabulary check right

Electronic funds transfer

.... allows banks to transfer funds between accounts without the exchange of paper checks

Checking account

A bank account that allows a bank customer to deposit cash and ti write checks against the account balance is a(n)....

Bank statement

A(n)....is an itemized record of all the transactions occurring in a depositor's account over a given period, usually a month.

Outstanding deposits

Deposits that have been made or recorded in the checkbook but that do not appear on the bank statement are called...

NSF check

A check returned by the bank because there are not enough funds in the drawer's checking account to cover the amount of the check is a(n)....

Bank service charge

A free charged to the depositor by the bank for maintaining bank records and for processing bank items is a(n).....

Depositor

A person or business that has cash on deposit in a bank is a(n)....

Check

A written order from a depositor telling the bank to pay cash to a person or business is a(n)....

Endorsement

A(n).... is an authorized signature that is written or stamped on the back of a check.

Restrictive endorsment

A(n)..... limits how a check may be handled and protects a check from being cashed by anyone except the payee.

Canceled checks

Checks that are paid by the bank, deducted from the depositor's account, and returned with the bank statement are called...

Outstanding checks

Checks that have been written but not yet presented to the bank for a payment are called...

Drawee

The bank on which a check is written is called the...

Signature card

The card containing the signature(s) of the person(s) authorized to write checks on the bank account is called...

Payee

The person or business to whom a check is written is the....

Drawer

The person who signs the check is the...

Reconciling the bank statement

The process of determining any differences between the balance shown on the bank statement and the checkbook balance is known as....

External controls

Those controls on cash from outside the buiness are called...

Internal controls

Those steps the business take to protect cash are called...

Voiding a check

Writing the word "void" across the front of a check is know as....

Deposit slip

a(n)... is a bank form on which the currency(bills and coins) and checks to be deposited are listed.

Stop payment order

a(n)... is a demand by the depositor that the bank not honor a certain check.