1. Cash Control and Banking Activities Mr. Belolan

2. Items to Consider… How do businesses protect their cash on a daily basis? –Consider….cameras, limit number of handlers, use of a safe, deposits daily. –Bloomsburg shop anecdote –Truck stop anecdote

3. Other considerations… How does a business protect against illegal credit card usage? –Verifying signatures –Show ID

4. Basic Terms 1.Check -- written order of deposit telling bank to pay 2.Depositor -- a person or business with cash in the bank 3.Signature card -- signature of person on the account 4.Deposit Slip -- lists checks and currency to add to your account 5.Endorsement -- authorized signature on back of check

5. Terms Continued 1.Restrictive endorsement -- limits how a check can be handled “for deposit only” 2.Payee -- to whom a check is written 3.Drawer -- person who writes the check (paying the bill) 4.Drawee -- bank on which the check is written 5.Voiding Check -- never destroy, write VOID

6. Endorsements 1.Blank – simplest, just your signature 2.Restrictive –much safer, “For Deposit Only,” check must be deposited 3.Endorsement in full – used to transfer a check to another person

7. Bank Statements Details inflows and outflows for your account Outstanding Checks and Deposits –Not yet received by bank, but month has ended

8. Other Terms Stop Payment Order -- ask the bank to stop payment before check is cashed NSF Check -- Not sufficient funds EFTS -- Electronic funds transfer system

9. Concept Review 1.Why write “for deposit only” on a check 2.Why might my checkbook balance not match my bank statement? 3.Name an internal control of cash for a business