Flashcards
Chapter 4 Key Terms
Cards in this deck (26)
- 1Automatic teller machine (ATM)Automatic teller machine that allows customer of a bank to transfer funds and make deposits or withdrawals
- 2Bank reconciliationProcess of comparing the bank balance to the checkbook balance so adjustments can be made regarding checks outstanding, deposits in transit, and the like.
- 3Bank statementReport sent by the bank to the owner of the checking account indicating checks processed, deposits made, and so on, along with beginning and ending balances.
- 4Banking appsSpecial client application programs like checking account balances, paying bills, and transferring funds for those doing online banking
- 5Blank endorsementCurrent owner of check signs name on back. Whoever presents checks for payment received the money.
- 6CheckWritten documents signed by appropriate person that directs the bank to pay a specific amount of money to a particular person or company.
- 7Check registerRecord-keeping device that records checks paid and deposits made by companies using a checking account
- 8Check stubProvides a record of checks written. It is attached to the check
- 9Credit memo (CM)Bank transactions that increase customer's account
- 10Debit cardTransactions result in money being immediately deducted from customer's checking account
- 11Debit memo (DM)A debit transaction bank does for customers
- 12Deposit slipDocument that shows date, name, account number, and items making up a deposit
- 13Deposits in transitDeposits not received or processed by bank at the time the bank statement is prepared
- 14DraftWritten orders like checks instructing a bank, credit union, or savings and loan institution to pay your money to a person or organization
- 15DraweeOne ordered to pay the check
- 16DrawerOne who writes the check
- 17Electronic funds transfer (EFT)A computerized operation that electronically transfers funds among parties without the use of paper checks
- 18EndorseSigning the back of the check; thus ownership is transferred to another party
- 19Full endorsementThis endorsement identifies the next person or company to whom the check is to be transferred
- 20Mobile bankingDoing banking transactions on a mobile device such as a smartphone or tablet
- 21Nonsufficient funds (NSF)Drawer's account lacked sufficient funds to pay written amount of check
- 22Outstanding checksChecks written but not yet processed by the bank before bank statement preparation
- 23OverdraftsOccurs when company or person wrote a check without enough money in the bank to pay for it (NSF check)
- 24PayeeOne who is named to receive the amount of the check
- 25Restrictive endorsementOne who is named to receive the amount of the check
- 26Signature cardInformation card signed by person opening a checking account
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- Chapter 4 Key Terms Flashcards
- Created by
- Jennifer Rupprecht · Jul 2017
- Updated
- Jul 24, 2017
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