Soph AOF test #1

Make sure you study this

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• Ok

This is what an endorsed check looks like

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• Ok

Differences between a borrower, financial intermediary and lender

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• Ok

What is the drawer on a check?

• The name and address of the person who has the checking account. It could have more than one person’s name if it’s a joint checking account.

• The person who will be paid by the check. The payee is the person who should receive money from the check.

• All checks are numbered to help you (and the bank) keep track of them. The bank may notify you if you use checks out of sequence.

• Usually today’s date. It is possible to put a different date on the check (e.g., postdating), but it is not always a good idea.

What is the Payee on a check?

• In the box, where you would write the amount in numbers. Make sure to write out a complete dollar amount including cents. If it’s a flat dollar amount (no cents), then write “.00” (e.g., $20.00).

• The person who will be paid by the check. The payee is the person who should receive money from the check.

• All checks are numbered to help you (and the bank) keep track of them. The bank may notify you if you use checks out of sequence.

• Usually today’s date. It is possible to put a different date on the check (e.g., postdating), but it is not always a good idea.

What is the check number on a check?

• In the box, where you would write the amount in numbers. Make sure to write out a complete dollar amount including cents. If it’s a flat dollar amount (no cents), then write “.00” (e.g., $20.00).

• The person who will be paid by the check. The payee is the person who should receive money from the check.

• All checks are numbered to help you (and the bank) keep track of them. The bank may notify you if you use checks out of sequence.

• Usually today’s date. It is possible to put a different date on the check (e.g., postdating), but it is not always a good idea.

What is the date on a check?

• In the box, where you would write the amount in numbers. Make sure to write out a complete dollar amount including cents. If it’s a flat dollar amount (no cents), then write “.00” (e.g., $20.00).

• To write out the amount in words (e.g., “twenty dollars”). After you have written the amount, draw a line all the way over to the right side of the check

• Your checks will come printed with bank information on them so people know what bank you are using.

• Usually today’s date. It is possible to put a different date on the check (e.g., postdating), but it is not always a good idea.

What is the printed amount on a check?

• In the box, where you would write the amount in numbers. Make sure to write out a complete dollar amount including cents. If it’s a flat dollar amount (no cents), then write “.00” (e.g., $20.00).

• To write out the amount in words (e.g., “twenty dollars”). After you have written the amount, draw a line all the way over to the right side of the check

• Your checks will come printed with bank information on them so people know what bank you are using.

• This is a place to make notes about why you are writing the check (e.g., groceries for Mom). It’s also a good spot to include information that you are supposed to provide with your check. For example, you might write an account number, invoice number, or other identification information on this line.

What is the written amount on a check?

• This number is used to identify your bank during a financial transaction. Each bank has its own number.

• To write out the amount in words (e.g., “twenty dollars”). After you have written the amount, draw a line all the way over to the right side of the check

• Your checks will come printed with bank information on them so people know what bank you are using.

• This is a place to make notes about why you are writing the check (e.g., groceries for Mom). It’s also a good spot to include information that you are supposed to provide with your check. For example, you might write an account number, invoice number, or other identification information on this line.

What is the drawee bank information on a check?

• This number is used to identify your bank during a financial transaction. Each bank has its own number.

• To write out the amount in words (e.g., “twenty dollars”). After you have written the amount, draw a line all the way over to the right side of the check

• Your checks will come printed with bank information on them so people know what bank you are using.

• This is a place to make notes about why you are writing the check (e.g., groceries for Mom). It’s also a good spot to include information that you are supposed to provide with your check. For example, you might write an account number, invoice number, or other identification information on this line.