Unit 2 Study Guide 20-21

School: Blair High School - Course: ECON 123 - Subject: Accounting

PART 1- Checking Fill in the Chart Ways to put money IN a checking account(DEPOSIT)How to take money OUT of a checking account (WITHDRAWAL/DEBIT) Deposit cashAtm withdrawal Electronic transferWriting checks Wire transferPay with check card Write a checkWithdrawal slip Money order What are at least 3 benefits of having a checking account? Convenience, safety, cheap What are 3 disadvantages of not being part of or locked out of a banking system? You have to travel to pay bills and pay extra fees for things like check cashers. You just ordered some new Yorktown sweats today totaling $52.25. Write out check below made payable to Yorktown High School. What are at least 3 pieces of information you MUST write when filling out a check from your checkbook? Name of check recipient, date, and dollar amount

CHECKING TERMS- Define the following words: TermDefinition Debit Card a card like a credit card by which money may be withdrawn or the cost of purchases paid directly from the holder's bank account without the payment of interest Overdraft Protection Overdraft protection isan agreement with the bank or financial institution to cover overdrafts on a checking account. Check Register A check register isa record of transactions in a checking account Reconciling an account an accounting process that compares two sets of records to check that figures are correct and in agreement. Reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete. Why should you keep your own check register rather than relying only on your online bank statement? Online banks typically upload transactions from merchants, which can take from a few minutes to a few days. Think back to the documentarySpent: Looking for Change.What makes check cashing businesses appealing to people? People are willing to pay the fees for instant cash.