Ch. 4 Calc Essentials: Banking

Checking Account

A bank account for managing the flow of money into and out of the account

Transaction

A banking activity that changes the amount of money in a bank account

Deposit

A transaction that increases a checking balance, this transaction is called a credit

Credit

A transaction that increases a checking account balance

Deposit slip

A banking form for recording the details of a deposit

Bank Memo

A notification! of a transaction error

Credit Memo

A notification! of an error that increases the checking account balance

Debit Memo

A notification! of an error that decreases the checking account balance

Automatic Teller Machine (ATM)

An electronic banking station that accepts deposits and disburses cash when you use an authorized ATM card, a debit card, or some

Electronic deposit

A deposit that is made by an electronic transfer of funds

Point-of-sale transaction

Electronic transfer of funds when a sale is made

Electronic funds transfer (EFT)

A transaction that transfers funds electronically

Withdrawal

A transaction that decreases a checking account balance; this transaction is also called a debit

Debit

A transaction that decreases a checking account balance

Check or bank draft

A banking form for recording the details of a withdrawal

Payee

The one to whom the amount of money written on a check is paid

Payor

The bank or institution that pays the amount of check to the payee

Maker

The one who is authorizing the payment of the check

Signature Card

A document that a bank keeps on file to verify the signatures of persons authorized to write checks on an account

Automatic Drafts

Periodic withdrawals that the owner of an account authorizes to be made electronically

Online banking service

A variety of services and transaction options that can be made through internet banking

Debit Card

A card that can be used like a credit card but the amount of debit (purchase or withdrawal) is deducted immediately from the checking account

Personal Identification Number (PIN)

A private code that is used to authorize a transaction on a debit card or ATM card

Check stub

A form attached to a check for recording checking account transactions that shows the account balance

Account or transaction register

A separate form for recording all checking account transactions

Endorsement

A signature, stamp, or electronic imprint on the back of a check that authorizes payment in cash or directs payment to a third party or account

Restricted endorsement

A type of endorsement that reassigns the check to a different payee or directs the check to be deposited to a specified account