Q14PGA - Horngren'S Financial And Managerial Accounting

Question

What are some common controls used with a bank account?

Step-by-Step Solution

Answer

Some common controls are signature card, check, and deposit ticket.

Step 1: Definition of bank account

The bank account is a service offered by the bank in which the holder of the bank account deposits his money into the bank.

Step 2: Common controls used with a bank account

1.Signature card:

It is a document that contains the signature of the authorized person of the bank account. This card protects the bank account of the holder from fraud.

2.Check:

The holder of the bank account issues the check. This document tells the bank to pay the amount to the designated person whose name is on the check.

3. Deposit ticket:

The deposit ticket is the document that the bank holder fills in before making any deposit. The amount of the deposit is written on this document.