Q14RQ - 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-by-Step Solution 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.