Chapter 4 Key Terms

Question	Answer
ATM (Automatic teller machine)	The ability to get instant cash.
Bank reconciliation	Process of comparing the bank balance to the checkbook balance, so adjustments can be made regarding checks outstanding, deposits in transit.
Bank Statement	Report 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.
Banking Apps	Special client application programs like checking account balances, paying bills, and transferring funds for those doing online banking.
Blank Endorsement	Current owner of check signs name on back. Whoever presents checks for payment receives the money.
Check	Written documents signed by appropriate person that direct the bank to pay a specific amount of money to the particular person or company.
Check Register	Record-keeping device that records checks paid and deposits made by companies using a checking amount.
Check Stub	Provides a record of checks written. It is attached to the check.
Credit Memo (CM)	Bank Transactions that increase customer's account.
Debit Card	Transactions result in money immediately deducted from customer's checking account.
Debit Memo (DM)	A debit transaction bank does for customers.
Deposit Slip	Document that shows date, name, account numbers, and items making up a deposit.
Deposits in Transit	Deposits not received or processed by bank at the time the bank statement is prepared
Draft	Written orders like checks instructing a bank, credit union, or savings and loan institution to pay your money to a person or organization.
Drawee	Bank ordered to pay.
Drawer	The one who writes checks.
Electronic Funds Transfer(EFT)	A computerized operation that electronically transfers funds among parties without the use of paper checks.
Endorse	Signing the back of the check; thus ownership is transferred to another party.
Full Endorsement	This endorsement identifies the next person or company to whom the check is to be transferred.
Mobile Banking	Banking that uses smartphone or tablet.
Non sufficient Funds	Drawer's account lacked sufficient funds to pay written amount of checks.
Outstanding Checks	Checks are written but not yet processed by the bank before bank statement preparation.
Overdrafts	Occur when the customer has no overdraft protection and a check bounces back to the company for a person who received the check because the customer has written a check without enough money in the bank to pay for it.
Payee	To who the check is payable.
Restrictive Endorsement	Check must be deposited to the payee's account. This restricts one from cashing it.
Signature Cards	Information card signed by person opening a checking account.

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	Created by Kathryn Diaz 11 months ago