Ch. 11 Cash Controls and Banking Activities

contains the signature of the person(s) authorized to write checks on a bank account

• ID Card

• Signature Card

are steps that a business takes to protect its cash and other assets

• External Controls

• Internal Controls

the person or business to whom a check is written

• Payee

• Drawee

the process of determining any differences between the balance shown on the bank statement and the checkbook balance

• reconciling the bank statement

• reconciling the check statement

a fee charged by the bank for maintaining bank records and for processing bank statement items for the depositor

• returned check fee

• bank service charge

a person or business that has cash on deposit at a bank

• depositor

• drawee

a check returned by the bank because there are not sufficient funds in the drawer's checking account to cover the amount of the check

• NSF check

• Voided check

The bank on which a check is written is the ___.

• Drawer

• Drawee

checks that are paid by the bank, deducted from the depositor's account, and returned with the bank statement

• Outstanding Checks

• Canceled Checks

The practice of marking a check that contains an error so that it will not be used is known as

• NSF Check

• Voiding a Check