The bank on which a check is written is the

a. Drawerb. Draweec. Depositord. Endorsement

The person who signs the check is the:

a. Drawer

b. Drawee

c. Depositor

d. Endorsement

The ____ enables banks to make transfers quickly and accurately form one account to another account without the immediate exchange of

checks.

• A. external controls

• B. internal controls

• C. electronic funds transfer system

• D. Reconciling a bank statement

___ are the outside controls a business can use to protect is

cash and other assets.

• A. external controls

• B. internal controls

• C. electronic funds transfer system

• D. Reconciling a bank statement

An itemized record of all the transactions occurring in a

depositors account over a given periods is a(n)

• A. check

• B. canceled check

• C. Bank statement

• D. Checking account

A(n) ___ is a fee charged by the bank for maintaining bank records and for processing bank statement

items for the depositor.

• A. bank service charge

• B. payee

• C. restrictive

• D. depositor

A(n) ___ endorsement limits how a check may be handled to protect the check from being cashed by

anyone except the payee.

• A. blank

• B. restrictive

• C. special

• D. specific

___ are checks that have been written but not yet presented to the

bank for payment.

• A. fabulous

• B. outstanding

• C. cancelled

• D. premium

The person who signs a check is the ___

• A. drawer

• B. drawee

• C. payee

• D. granter

The ___ is the person or business to whom a check is written.

• A. drawer

• B. drawee

• C. payee

• D. granter

___ are the steps that a business takes to protect is

cash and other assets.• A. external controls

• B. internal controls

• C. electronic funds transfer system

• D. Reconciling a bank statement

A demand by a depositor that the bank not honor a certain specific

check is a(N)

• A. restrictive

• B. voiding a check

• C. stop payment order

• D. NSF check

The practice of marking a check that contains an error so that is

will not be used is known as ___• A. restrictive

• B. voiding a check

• C. stop payment order

• D. NSF check

A check should be written before the check stub is filled out.

• A. true

• B. false

When a business received a check in payment for a product or service,

it acquires the right to that check

• A. true

• B. false

Cash is a business most liquid asset.

• A. true

• B. false

Outstanding checks and voided checks are the most frequent

causes for differences between the bank statement balance and

the checkbook balance.

• A. true

• B. false

Checks written in pencil are acceptable.

• A. true

• B. false

A stop payment order and voiding a check mean the same thing.

• A. true

• B. false

An example of an internal control is the daily deposit of

cash receipts in the bank.

• A. true

• B. false