Chapter 4 - Banking

Chapter 4 - Banking

1. Checking Account

   • Signature Card
   • Deposit Ticket
     • Increases Account
     • Checks or cash deposited into account
   • Checks
     • Decreases Account
     • Drawee
       • One who writes the check
     • Drawer
       • One who writes the check
     • Payee
       • To whom the check is payable
     • Common Endorsements
       • Blank Endorsement
       • Full Endorsement
       • Restrictive Endorsement

2. Bank & Statement Reconciliation

   • Checkbook Balance
     • Add to Checkbook
       • EFT
       • Interest Earned
       • Notes Collected
       • Direct Deposit
     • Subtract from Checkbook
       • ATM Withdrawels
       • NSF Check
       • Auto Withdrawels
       • Online Fees
       • Auto Payments
       • Overdrafts
       • Service Charges
       • Stop Payments
   • Bank Balance
     • Add to Bank Balance
       • Deposit in Transit
     • Subtract from Bank Balance
       • Outstanding Checks
   • Reconciling a Bank Statement
     • Step 1 - Identify Outstanding Checks
       • Step 2 - Identify the deposits in transit
         • Step 3 - Look for transaction not previously recorded
           • Step 4 - Check for recording Error
             • Step 5 - Compare the adjusted balances of the checkbook and bank statement