261. What is the purpose of a bank reconciliation in the context of a bank account?
A. Setting Advertising Budgets
B. Compares the bank statement with the account holder’s records to identify and resolve discrepancies.
C. Ignoring Changes in Cash Position
D. Detailing Changes in Equity
262. How does a stop payment order impact a check associated with a bank account?
A. Focusing Only on Short-Term Assets
B. Prevents the bank from processing a specific check, often due to loss or other concerns.
C. Ignoring Non-Cash Transactions
D. Assessing Market Trends
263. What is the purpose of a deposit slip in the context of a bank account?
A. Analyzing Employee Performance
B. Provides a written record of funds deposited into the bank account, including cash or checks.
C. Setting Advertising Budgets
D. Ignoring Changes in Equity
264. How does a bank account holder benefit from a sweep account?
A. Detailing Long-Term Liabilities
B. Automatically transfers funds between a checking account and an interest-earning investment account.
C. Ignoring Changes in Cash Position
D. Setting Advertising Budgets
265. What is the purpose of a bank endorsement on the back of a check?
A. Assessing Market Demand
B. Authorizes the bank to process the check and deposit the funds into the designated account.
C. Ignoring Non-Monetary Transactions
D. Focusing Only on Short-Term Assets
266. How does a joint account holder differ from an authorized signer on a bank account?
A. Setting Advertising Budgets
B. Joint account holders share equal access and responsibility, while authorized signers have limited access.
C. Ignoring Changes in Equity
D. Analyzing Employee Performance
267. How does the concept of “available balance” differ from “current balance” in a bank account?
A. Detailing Changes in Equity
B. Available balance reflects funds that can be used for transactions, while the current balance includes pending transactions.
C. Ignoring Changes in Cash Position
D. Setting Advertising Budgets
268. How does a bank account holder benefit from electronic funds transfer (EFT) services?
A. Assessing Market Trends
B. Facilitates the electronic movement of funds between accounts or to pay bills.
C. Focusing Only on Short-Term Liabilities
D. Ignoring Non-Cash Transactions
269. What is the purpose of a bank reconciliation statement in the context of a bank account?
A. Ignoring Changes in Equity
B. Summarizes the differences between the bank statement and the account holder’s records for reconciliation.
C. Setting Advertising Budgets
D. Analyzing Employee Performance
270. How does a bank account holder benefit from the use of a debit card for everyday transactions?
A. Detailing Long-Term Liabilities
B. Provides a convenient and direct way to access funds for purchases and withdrawals.
C. Ignoring Changes in Cash Position
D. Assessing Market Demand
Admin