balancing a checkbook 3

Front

What is a checkbook?

Back

A checkbook is a book of checks issued by a bank that allows the account holder to make payments directly from their bank account.

Front

What is a check register?

Back

A check register is a record used to track all transactions in a checking account, including deposits, withdrawals, and the resulting balance.

Front

How do you calculate the ending balance in a checkbook?

Back

To calculate the ending balance, start with the beginning balance, add any deposits, and subtract any withdrawals.

Front

What is a deposit?

Back

A deposit is money added to a bank account, increasing the account balance.

Front

What is a withdrawal?

Back

A withdrawal is money taken out of a bank account, decreasing the account balance.

Front

What does it mean to reconcile a checkbook?

Back

Reconciling a checkbook means comparing the check register with the bank statement to ensure all transactions match and the balance is accurate.

Front

What is an outstanding check?

Back

An outstanding check is a check that has been written but has not yet cleared the bank, meaning the funds have not yet been deducted from the account.

Front

What is a bank statement?

Back

A bank statement is a summary of all transactions in a bank account over a specific period, including deposits, withdrawals, and the ending balance.

Front

What is the purpose of balancing a checkbook?

Back

The purpose of balancing a checkbook is to ensure that the account holder knows their accurate account balance and can avoid overdrafts.

Front

What is an overdraft?

Back

An overdraft occurs when a withdrawal from a bank account exceeds the available balance, resulting in a negative balance.