| A | B |
|---|
| Internal Controls | Steps a business takes to protect cash |
| External Controls | The measures and procedures provided outside the business to protect cash and other assets |
| Checking Account | Allows a person or business to deposit cash in a bank and to write checks against the account balance |
| Check | A written order from a depositor telling the bank to pay a stand amount of cash to the person or business named on the check |
| Depositor | A person or business that has cash on deposit in a bank |
| Signature Card | A card containing the signature(s) of the person(s) authorized to write checks on a checking account |
| Deposit Slip | A bank form listing the cash and checks to be deposited |
| Endorsement | An authorized signature written or stamped on the back of a check representing receipt and deposit or payment of check |
| Restrictive Endorsement | A check endorsement that restricts or limits how a 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 | Canceling a check by writing the work "void" across the front in ink |
| Bank Statement | An itemized record of all the transactions in a depositor's account over a given period, usually a month |
| Canceled Checks | Checks paid by the bank and deducted from the depositor's account |
| Reconciling the Bank Statement | The process of determining any differences between a bank statement balance and a checkbook balance |
| Outstanding Checks | Checks that have been written but have not yet been presented to the bank for payment |
| Outstanding Deposits | Deposits that have been made and recorded in the checkbook but do not 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 that the bank not honor a certain check |
| NSF Check | A check returned to the depositor by the bank because there are not sufficient funds in the drawer's checking account to cover the check |
| Electronic Funds Transder System | Allows banks to transfer funds among accounts quickly and accurately without the exchange of checks |
