Ch 29 Skeleton Outline - Student

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2024
Views:

146

Pages:

3
Author:

customer-8970846

Key Terms Check – A written order directing a bank to pay money from your account Direct Deposit – Money electronically deposited into your account (like a paycheck) Interest Bearing Account – An account that earns interest on the balance Signature Card – A form you sign when opening an account to verify your identity Overdrawn – When you spend more money than you have in your account Overdraft Protection – A service that covers transactions when your account is short Stop Payment – An order to the bank not to pay a specific check Debit Card – A card used to withdraw money directly from your checking account How Checking Accounts Work You deposit money into your account You can withdraw or spend money using checks, debit cards, or online transfers The bank keeps track of your balance You must monitor your account to avoid overdrafts Writing and Cashing a Check Write the date Write the payee (who gets the money) Write the amount in numbers and words Sign the check The receiver endorses (signs) it to cash or deposit Types of Accounts Regular checking accounts Student checking accounts Interest-bearing checking accounts Joint accounts Online checking accounts Checking Account Security Keep your PIN and passwords private Monitor your account regularly Report lost or stolen cards immediately Use secure websites for online banking Account Services and Other Offerings ATM access Online bill pay Mobile banking apps Direct deposit Overdraft protection Online Banking Check balances anytime Transfer money between accounts Pay bills electronically Deposit checks using your phone Key Terms (Part 2) Check Register – A record of all transactions in your account Endorsement – Signature on the back of a check to approve it Bank Statement – Monthly summary of account activity Cancelled Checks – Checks that have been processed by the bank Bank Reconciliation – Matching your records with the bank statement Outstanding Checks – Checks written but not yet processed Keeping Track of Financial Transactions Record all deposits and withdrawals Keep receipts Update your check register regularly Checking Account Statements Shows deposits, withdrawals, fees, and balance Helps you verify your account activity The Parts of a Check Payee – Person or business receiving the money Drawer – The account holder writing the check Drawee – The bank that pays the check Writing a Check Fill in all required sections Write clearly Double-check the amount Sign it Making Deposits Fill out a deposit slip Include cash or checks Submit at ATM, bank, or mobile app Bank Statements Review for errors Compare with your records Keep for your financial history Handling Your Own Checks Store checks safely Never sign blank checks Destroy unused checks if closing account Reconciling Your Account Records Compare your check register with your bank statement Adjust for outstanding checks and deposits Balancing Your Checkbook Start with your bank balance Add deposits not yet recorded Subtract outstanding checks Match your register balance Other Items to Consider When Balancing Your Checkbook Bank fees Interest earned Automatic payments ATM withdrawals Errors or fraud