Now that you have visited the other pages and checked out the resources it is time to talk about the key points of this lesson. The following terms are your vocabulary terms for this section.
A bank reconciliation is both a document and an action. It is the process of matching your checkbook register with the bank statement. It is also the document after the action has been done. It is usually done by the banking institution. You will do the same thing by balancing your bank statements against what you recorded. This is second action is commonly called balancing your checkbook.
A canceled check is a check that has cleared your account. In other words, you wrote a check to give to someone or a business for payment. The recipient of the check then deposits the check into their bank account. If you have enough money in your account the amount of the check is paid and then your check becomes a canceled check. Meaning it was accepted for payment and paid on. Once canceled it can no longer be used.
A demand deposit is the name of a type of bank account from which money may be withdrawn at any time. There are no time limits, or restrictions but one, you must have the money available.
A joint account is a checking account that has been opened by two or more people. Everyone on the account also has the same access, rights and privileges to the account and the money in it. They also share the same responsibilities too.
An overdraft happens when a check written for more money than your account contains. So if you write a check for $35 but you only have $20 in your account, you have just over-drafted you account. With every overdraft their is an extra fee that is charged to you. Most fees are $35.
A share account is a savings account representing ownership interest at a credit union. Share savings accounts pay dividends, similar to interest you earn when you have a bank savings. The difference is that by banking with a credit union, you are now part owner and will earn interest for your ownership.
Thank you and I am glad we had this little talk.
Should you have questions please see me during self study time.