Question 1

A check endorsed "For Deposit Only" can only be cashed by the person who endorsed the check.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following, in a bank statement reconciliation, would be deducted from the bank statement balance?

Accepted Answer

A)   bank service charges
B)   outstanding deposits
C)   NSF charges
D)   outstanding checksE) A) and C)
F) B) and D)

Question 3

In the process of reconciliation which of the following should be deducted from the register balance?

Accepted Answer

A)   bank service charges
B)   credit from the bank
C)   interest paid by the bank
D)   automatic paycheck depositE) A) and B)
F) B) and C)

Question 4

The fee a bank charges for maintaining a checking account is referred to as a(n) :

Accepted Answer

A)   NSF charge
B)   service charge
C)   ATM charge
D)   returned check chargeE) B) and D)
F) B) and C)

Question 5

When completing a check stub, to arrive at the ending balance, take the beginning balance and:

Accepted Answer

A)   add the deposit and the check
B)   add the check and subtract the deposit
C)   subtract the check and the deposit
D)   subtract the check and add the depositE) B) and C)
F) B) and D)

Question 6

When reconciling the bank statement, outstanding deposits are:

Accepted Answer

A)   subtracted from the bank statement
B)   subtracted from the checkbook
C)   added to the checkbook
D)   added to the bank statementE) A) and B)
F) A) and C) D

Question 7

The primary difference between a check register and a check stub is that the check register is attached to the check.

Accepted Answer

A) True 
 B)False

Question 8

In a bank statement reconciliation, which of the following should be added to the bank statement balance?

Accepted Answer

A)   collection of a note by the bank
B)   outstanding checks
C)   bank service charge
D)   outstanding depositsE) All of the above
F) C) and D) D

Question 9

When a check stub is completed, the balance from the previous check should be brought forward; any deposits are added and the check amount is deducted to arrive at the new balance.

Accepted Answer

A) True 
 B)False

Question 10

The primary form used in a checking account is a check register.

Accepted Answer

A) True 
 B)False

Question 11

It is not necessary to list checks and cash amounts separately on a deposit slip.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A)   added to the bank balance
B)   ignored
C)   added to the checkbook balance
D)   subtracted from the checkbook balanceE) A) and B)
F) None of the above

Question 13

The letters NSF mean Non-Savings Funds and represent the amount on deposit in your account that is available for withdrawal.

Accepted Answer

A) True 
 B)False

Question 14

In a bank reconciliation, outstanding checks are:

Accepted Answer

A)   subtracted from the bank statement
B)   added to the checkbook
C)   subtracted from the checkbook
D)   added to the bank statementE) A) and B)
F) A) and C)

Question 15

Point-of-sale transactions are examples of electronic funds transfers.

Accepted Answer

A) True 
 B)False  True

Question 16

When writing the verbal amount on a check, the decimal position is represented by the word "dot."

Accepted Answer

A) True 
 B)False

Question 17

The_________________ is a form kept with the checks and is used to record checks written and deposits made.

Accepted Answer

A)   deposit slip
B)   stub
C)   checkbook
D)   check registerE) B) and D)
F) All of the above

Question 18

A___________ is attached to a check by perforation, and is used to record checks written and deposits made.

Accepted Answer

A)   check stub
B)   signature card
C)   deposit slip
D)   check registerE) None of the above
F) B) and D)

Question 19

When you receive your bank statement, the bank's balance should always agree with your account register.

Accepted Answer

A) True 
 B)False

Question 20

The one who writes the check and directs the payment of funds is known as the:

Accepted Answer

A)   drawee
B)   maker
C)   endorsee
D)   payeeE) A) and B)
F) C) and D)

Exam 4: Banking

A check endorsed "For Deposit Only" can only be cashed by the person who endorsed the check.

Correct AnswerverifiedShow Answer

Which of the following, in a bank statement reconciliation, would be deducted from the bank statement balance?

Correct AnswerverifiedShow Answer

In the process of reconciliation which of the following should be deducted from the register balance?

Correct AnswerverifiedShow Answer

The fee a bank charges for maintaining a checking account is referred to as a(n) :

Correct AnswerverifiedShow Answer

When completing a check stub, to arrive at the ending balance, take the beginning balance and:

Correct AnswerverifiedShow Answer

When reconciling the bank statement, outstanding deposits are:

Correct AnswerverifiedD

The primary difference between a check register and a check stub is that the check register is attached to the check.

Correct AnswerverifiedShow Answer

In a bank statement reconciliation, which of the following should be added to the bank statement balance?

Correct AnswerverifiedD

When a check stub is completed, the balance from the previous check should be brought forward; any deposits are added and the check amount is deducted to arrive at the new balance.

Correct AnswerverifiedShow Answer

The primary form used in a checking account is a check register.

Correct AnswerverifiedShow Answer

It is not necessary to list checks and cash amounts separately on a deposit slip.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The letters NSF mean Non-Savings Funds and represent the amount on deposit in your account that is available for withdrawal.

Correct AnswerverifiedShow Answer

In a bank reconciliation, outstanding checks are:

Correct AnswerverifiedShow Answer

Point-of-sale transactions are examples of electronic funds transfers.

Correct AnswerverifiedTrue

When writing the verbal amount on a check, the decimal position is represented by the word "dot."

Correct AnswerverifiedShow Answer

The_________________ is a form kept with the checks and is used to record checks written and deposits made.

Correct AnswerverifiedShow Answer

A___________ is attached to a check by perforation, and is used to record checks written and deposits made.

Correct AnswerverifiedShow Answer

When you receive your bank statement, the bank's balance should always agree with your account register.

Correct AnswerverifiedShow Answer

The one who writes the check and directs the payment of funds is known as the:

Correct AnswerverifiedShow Answer

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D

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D

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True

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