| A | B |
|---|
| Internal controls | Procedures within the business that are designed to protect cash and other assets and to keep reliable records. |
| External controls | Measures and procedures provided outside the business to protect cash and other assets. |
| Checking account | An account that allows a person or business to deposit cash in a bank and then write checks and make ATM withdrawals and debit card purchases against the account balance. |
| Check | A written order from a depositor telling the bank to pay a stated amount of cash to the person or business name on the check. |
| Depositor | A person or business that has cash on deposit in a bank. |
| Signature card | a bank form containing the signature(s) of the person(s) authorized to write checks on a checking account. |
| Deposit slip | A bank form used to list the cash and checks to be deposited. |
| Endorsement | An authorized signature written or stamped on the back of a check that transfers ownership of the check. |
| Blank endorsement | A check endorsement that includes only the signature or stamp of the depositor. |
| Special endorsement | a check endorsement that transfers ownership of the check to a specific individual or business. |
| Restrictive endorsement | A check endorsement that transfers ownership to a specific owner and limits how the check may be handled. |
| Payee | The person or business to whom a check is written or a note is payable. |
| Drawer | The person who signs a check. |
| Drawee | The bank on which a check is written. |
| Voiding a check | Making a check unusable by writing the word Void in ink across the front of the check. |
| Bank statement | an itemized record of all the transactions in a depositor’s account over a given period |
| Canceled checks | A check paid by the bank |
| Imaged checks | A copy of a canceled check |
| Reconciling the bank statement | The process of determining any differences between a bank statement balance and a checkbook balance. |
| Outstanding checks | A check that has been written but has not yet been presented to the bank for payment. |
| Outstanding deposits | a deposit that has been made and recorded in the checkbook but does not yet appear on the bank statement. |
| Bank service charge | a fee the bank charges for maintaining bank records and processing bank statement items for the depositor. |
| Stop payment order | a demand by the drawer |
| NSF check | a check returned to the depositor by the bank because the drawer’s checking account does not have sufficient funds to cover the amount; also called dishonored or bounced check. |
| Check 21 | The check clearing for the 21st Century Act; it allows the conversion of paper check to an electronic image that can be quickly processed between banks. |
| Postdated check | A check that has a future date instead of the actual date; it should not be deposited until the date on the check. |
| Electronic funds transfer system | A system that allows banks to transfer funds among accounts quickly and accurately without the exchange of checks. |
| Bankcard | A bank-issued card honored by many businesses that can be used to withdraw cash and to make payments for goods and services at many businesses instead of writing checks. |
| Automated teller machine | Computer terminal where account holders can conduct various banking activities often outside the bank or at other locations. |
