Consumer Math Exam Review Sem1 - compound interest & checks

Front

What is the purpose of reconciling a bank statement?

Back

To determine if there are any discrepancies in your records.

Front

What does the term 'present balance' refer to in banking?

Back

The current amount of money in an account after all transactions have been accounted for.

Front

What is labeled number 5 on a check?

Back

Amount in numbers.

Front

What is labeled number 6 on a check?

Back

Signature.

Front

If the final balance in the bank statement is $3500, outstanding checks equal $200 and outstanding deposits total $400, what is the final balance in the business's bank account?

Back

$3700.

Front

What is the formula to calculate the present balance in a bank account?

Back

Present Balance = Previous Balance + Deposits - Checks - Service Charges + Interest.

Front

What is a routing number?

Back

A unique number assigned to a bank or credit union to identify it in transactions.

Front

What is an account number?

Back

A unique number assigned to a bank account to identify it.

Front

What does 'amount in words' refer to on a check?

Back

The written representation of the amount being paid.

Front

What is the significance of the payee on a check?

Back

The person or entity to whom the check is written.