Multiple Choice
When you reconcile your checking account, what are you primarily doing?
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6. Internal Controls and Reporting Cash
Bank Reconciliation
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In the context of bank reconciliation, where should you endorse a check before depositing it?
A
On a separate piece of paper attached to the check
B
Anywhere on the check, as long as your signature is present
C
On the front of the check, above the payee line
D
On the back of the check, within the designated endorsement area
Verified step by step guidance1
Understand the purpose of endorsing a check: Endorsing a check is a way to authorize the bank to process the check and deposit the funds into your account. It also serves as proof of your agreement to the transaction.
Locate the designated endorsement area: On the back of the check, there is typically a section marked for endorsement. This area is often labeled 'Endorse Here' or has lines indicating where the signature should be placed.
Ensure proper placement of the endorsement: Sign your name within the designated endorsement area. Avoid writing outside this section, as it may interfere with the bank's processing of the check.
Be aware of the type of endorsement: Depending on the situation, you may use a blank endorsement (just your signature), a restrictive endorsement (e.g., 'For Deposit Only'), or a special endorsement (e.g., transferring the check to another party).
Avoid common mistakes: Do not endorse the check on the front, above the payee line, or on a separate piece of paper. These actions may render the check invalid or delay processing.
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