Business Revision Aa.docx

Business Revision

Types of Accounts 1- Regular Account :  account is designed for customers who write a few checks each month and don’t keep a minimum amount of money 2- Interest-Bearing Account :  Is a checking account that earns interest on your account’s balance.  An interest-bearing account usually has a minimum balance requirement with an unlimited number of checks 3- Joint Account  An account shared by two people who are equally responsible for the account.  Either person can write checks on the account.

Services that the bank offer 1   2  3  4 5

Signature Card Is a record of your signature used by the bank to verify your identity Helps prevent other people from cashing your checks. The signature you put on your card is the same one you have to use when you sign your checks. Overdraft Protection Is a line of credit for overdrawn checks You pay a service fee for the overdraft protection and interest on the overdrawn amount until it is repaid. Stop Payment Is an order for a bank not to cash a particular check. Banks charge a fee to stop payment on a check. Debit Cards is like a credit card but money is taken directly from your checking account Online Checking Allows you to check your accounts, transfer money, or pay bills at any time of the day over the Internet.

Writing a Check 1- The party to whom the check is written and who is cashing the check is the payee. 2- The party who wrote the check and is paying the money, or drawing it from an account, is called the drawer. 3- The bank or financial institution where the drawer has an account is the drawee. check register: your checkbook log where you keep track of all your checking transactions. Step to deposit a check 1- Fill out a deposit ticket. 2- Endorsement, or the signature of the payee on the back of the check. a- Endorse the check on the back b- Use a black pen c- Sign your name exactly as it’s written on the front of the check d- Write “For Deposit Only” above your signature. Bank statement  is the bank’s record of all the transactions in your checking account.  includes a record of all withdrawals, deposits, interest, and fees. Bank reconciliation: is the process of seeing whether your records agree with the bank’s records for your account. a- see whether the bank has processed all your checks and deposits. b- Outstanding checks are checks that have been written but haven’t yet been cashed. c- Deposits that haven’t been recorded on the bank statement should be added to the bank statement balance. d- The service fee should be subtracted from the balance in your check register. e- If your account earns interest, add the interest shown on the bank statement to your check register. If the balances on your bank statement and in your check register are the same, you have reconciled