Question 1

When a checking account is opened, the person(s)  who will be writing checks must sign a:

Accepted Answer

A)   deposit slip
B)   check register
C)   signature card
D)   check stub

Question 2

Writing the words "For Deposit Only" along with your checking account number on the back of a check is called a:

Accepted Answer

A)   qualified endorsement
B)   restricted endorsement
C)   pure endorsement
D)   simple endorsement

Question 3

The one to whom a check is written and the money paid is called the:

Accepted Answer

A)   maker
B)   payor
C)   drawer
D)   payee

Question 4

The difference between your checkbook balance and the bank statement balance is due primarily to fraud.

Accepted Answer

A) True 
 B)False

Question 5

When reconciling a bank account, an unrecorded bank service charge is:

Accepted Answer

A)   added to the bank statement balance
B)   subtracted from the bank statement balance
C)   added to the checkbook balance
D)   subtracted from the checkbook balance

Question 6

The payee of a check is recorded in the memo portion.

Accepted Answer

A) True 
 B)False

Question 7

When opening a checking account, the authorized signer(s) must sign a check stub, which is kept on record at the bank.

Accepted Answer

A) True 
 B)False

Question 8

A credit memorandum, when received from the bank, should be?

Accepted Answer

A)   added to the bank balance
B)   added to the checkbook balance
C)   subtracted from the checkbook balance
D)   ignored

Question 9

According to the Board of Governors of the Federal Reserve Board, an endorsement must be:

Accepted Answer

A)   on the face of the check
B)   on the back of the check, within  1121 \frac { 1 } { 2 }121​  " of the left edge  
C)   on the face of the check, on the signature line
D)   on the back of the check, any position

Question 10

A debit memorandum discovered during the reconciliation process should be:

Accepted Answer

A)   added to the book balance of cash
B)   added to the bank statement balance of cash
C)   deducted from the book balance of cash
D)   deducted from the bank statement balance of cash

Question 11

The need for tellers has been completely eliminated by ATMs.

Accepted Answer

A) True 
 B)False

Question 12

If a check that you deposit is returned NSF, the bank credits your account for the amount of the check.

Accepted Answer

A) True 
 B)False

Question 13

A bank statement contains a listing of all the transactions recorded by the bank during the statement period.

Accepted Answer

A) True 
 B)False

Question 14

In the reconciliation process, a note collected by the bank should be?

Accepted Answer

A)   added to the register balance
B)   added to the bank statement balance
C)   deducted from the bank statement balance
D)   deducted from the register balance

Question 15

Checks that you have written, but are not listed on the bank statement, are called:

Accepted Answer

A)   outstanding
B)   in transit
C)   delayed
D)   NSF

Question 16

While banking procedures are designed to prevent misuse of checks, it is a good idea to use a:

Accepted Answer

A)   restricted endorsement
B)   qualified endorsement
C)   pure endorsement
D)   simple endorsement

Question 17

Outstanding checks always result in overdrafts.

Accepted Answer

A) True 
 B)False

Question 18

Overdraft protection is a fee that banks charge for checking account maintenance.

Accepted Answer

A) True 
 B)False

Question 19

The payee endorses the back of a check.

Accepted Answer

A) True 
 B)False

Question 20

A check that was outstanding in a previous month's bank reconciliation was again not included in the canceled checks returned by the bank. When reconciling the statement this month, the amount of the check should be:

Accepted Answer

A)   added to the bank statement balance
B)   deducted from the bank statement balance
C)   added to the book balance of cash
D)   deducted from the book balance of cash

Exam 4: Banking

The payee endorses the back of a check.

Correct AnswerverifiedShow Answer

Writing the words "For Deposit Only" along with your checking account number on the back of a check is called a:

Correct AnswerverifiedShow Answer

A bank statement contains a listing of all the transactions recorded by the bank during the statement period.

Correct AnswerverifiedShow Answer

When reconciling a bank account, an unrecorded bank service charge is:

Correct AnswerverifiedShow Answer

The payee of a check is recorded in the memo portion.

Correct AnswerverifiedShow Answer

If a check that you deposit is returned NSF, the bank credits your account for the amount of the check.

Correct AnswerverifiedShow Answer

A credit memorandum, when received from the bank, should be?

Correct AnswerverifiedShow Answer

A check that was outstanding in a previous month's bank reconciliation was again not included in the canceled checks returned by the bank. When reconciling the statement this month, the amount of the check should be:

Correct AnswerverifiedShow Answer

The difference between your checkbook balance and the bank statement balance is due primarily to fraud.

Correct AnswerverifiedShow Answer

When a checking account is opened, the person(s) who will be writing checks must sign a:

Correct AnswerverifiedShow Answer

Checks that you have written, but are not listed on the bank statement, are called:

Correct AnswerverifiedShow Answer

The one to whom a check is written and the money paid is called the:

Correct AnswerverifiedShow Answer

Outstanding checks always result in overdrafts.

Correct AnswerverifiedShow Answer

When opening a checking account, the authorized signer(s) must sign a check stub, which is kept on record at the bank.

Correct AnswerverifiedShow Answer

Overdraft protection is a fee that banks charge for checking account maintenance.

Correct AnswerverifiedShow Answer

A debit memorandum discovered during the reconciliation process should be:

Correct AnswerverifiedShow Answer

The need for tellers has been completely eliminated by ATMs.

Correct AnswerverifiedShow Answer

In the reconciliation process, a note collected by the bank should be?

Correct AnswerverifiedShow Answer

While banking procedures are designed to prevent misuse of checks, it is a good idea to use a:

Correct AnswerverifiedShow Answer

According to the Board of Governors of the Federal Reserve Board, an endorsement must be:

Correct AnswerverifiedShow Answer

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