1. The bank on which a check is written is the a.Drawer b.Drawee c.Depositor d.Endorsement

2. The person who signs the check is the: a.Drawer b.Drawee c.Depositor d.Endorsement

3. The ____ enables banks to make transfers quickly and accurately form one account to another account without the immediate exchange of checks. A. external controls B. internal controls C. electronic funds transfer system D. Reconciling a bank statement

4. ___ are the outside controls a business can use to protect is cash and other assets. A. external controls B. internal controls C. electronic funds transfer system D. Reconciling a bank statement

5. An itemized record of all the transactions occurring in a depositors account over a given periods is a(n) A. check B. canceled check C. Bank statement D. Checking account

6. A(n) ___ is a fee charged by the bank for maintaining bank records and for processing bank statement items for the depositor. A. bank service charge B. payee C. restrictive D. depositor

7. A(n) ___ endorsement limits how a check may be handled to protect the check from being cashed by anyone except the payee. A. blank B. restrictive C. special D. specific

8. ___ are checks that have been written but not yet presented to the bank for payment. A. fabulous B. outstanding C. cancelled D. premium

9. The person who signs a check is the ___ A. drawer B. drawee C. payee D. granter

10. The ___ is the person or business to whom a check is written. A. drawer B. drawee C. payee D. granter

11. ___ are the steps that a business takes to protect is cash and other assets. A. external controls B. internal controls C. electronic funds transfer system D. Reconciling a bank statement

12. A demand by a depositor that the bank not honor a certain specific check is a(N) A. restrictive B. voiding a check C. stop payment order D. NSF check

13. The practice of marking a check that contains an error so that is will not be used is known as ___ A. restrictive B. voiding a check C. stop payment order D. NSF check

14. A check should be written before the check stub is filled out. A. true B. false

15. When a business received a check in payment for a product or service, it acquires the right to that check A. true B. false

16. Cash is a business most liquid asset. A. true B. false

17. Outstanding checks and voided checks are the most frequent causes for differences between the bank statement balance and the checkbook balance. A. true B. false

18. Checks written in pencil are acceptable. A. true B. false

19. A stop payment order and voiding a check mean the same thing. A. true B. false

20. An example of an internal control is the daily deposit of cash receipts in the bank. A. true B. false