Checking Account Quiz

Questions: 16 · 10 minutes
1. Your register balance is $920. The statement balance is $1,000, and an $80 check recorded in your register is still outstanding. What happens when you adjust the statement for that check?
The register balance must be increased to $1,000
The adjusted statement balance becomes $1,080
The register balance must be reduced to $840
The adjusted statement balance becomes $920, matching the register
2. Your account shows $680 before a $90 debit-card purchase finishes posting. A $620 rent payment is scheduled next. What is the most reasonable conclusion if no other money enters the account?
The funds may be insufficient for both transactions, so the account needs attention
The rent payment will leave exactly $60 available
The two transactions will increase the closing balance to $1,390
The pending purchase can be ignored because it has not posted
3. What is the main purpose of a checking-account register?
To predict how much interest every investment will earn
To replace all statements issued by the bank
To track deposits, withdrawals, fees, and the running balance
To record only checks that have already cleared
4. What is an outstanding check?
A check the bank rejected and permanently canceled
A check deposited into the account during the current month
A written check that has not yet been deducted by the bank
A check listed twice on a bank statement
5. You wrote a $75 check yesterday and recorded it in your register. It does not appear on today's online transaction list. What is the most likely explanation?
The check is still outstanding and has not been presented for payment
The bank has converted the check into a deposit
The account's opening balance automatically increased by $75
The register must have added the check instead of subtracting it
6. What is a stop-payment request generally intended to do?
Reverse every transaction completed during a statement period
Ask the bank not to pay a specified check or eligible payment that has not completed processing
Move enough money from savings to cover all future checks
Place a permanent freeze on every checking-account withdrawal
7. What is an ACH transaction?
A cash withdrawal completed only through an ATM
A temporary authorization created only by a debit card
A sequence number printed on a paper check
An electronic transfer processed through the Automated Clearing House network
8. Your register starts at $850. You add a $225 deposit, then record a $140 check and a $63 debit-card purchase. What is the closing balance?
$935
$1,075
$647
$872
9. What does it mean when a check has cleared?
The payee decided not to deposit it
The check was written correctly but remains outstanding
The bank processed the check and deducted it from the account
The check amount was added to the writer's account
10. A statement ends at $1,240. There are $180 in outstanding checks and a $300 deposit in transit. What is the adjusted statement balance?
$1,120
$1,540
$1,420
$1,360
11. Once a debit-card purchase posts to a checking account, what does it normally do?
Increases the account balance until the monthly statement arrives
Decreases the account balance by the purchase amount
Converts the purchase into an outstanding paper check
Moves the purchase amount into the account's deposits total
12. An account opens the month with $1,450. Deposits total $600, withdrawals total $375, and fees total $25. What is the closing balance?
$1,400
$1,700
$1,650
$2,000
13. What does it generally mean when a transaction is marked “pending”?
It has been authorized or initiated but has not finished posting
It has been permanently removed from the account record
It was processed twice and is awaiting a refund
It has already appeared on every finalized monthly statement
14. Your register shows $810, while the bank statement shows $760. The statement includes a $50 account fee that is missing from your register. What update reconciles the two balances, assuming no other differences?
Add $50 to the register, producing $860
Subtract $50 from the register, producing $760
Add $50 to the statement balance, producing $810
Subtract $50 from the statement balance, producing $710
15. Which description best matches direct deposit?
An electronic payment sent into an account, such as wages or benefits
A check written directly to the account holder
Cash placed into an account through a teller
A debit-card refund that must be collected at an ATM
16. Which term describes a transaction that brings a checking account below zero?
Account hold
Overdraft
Endorsement
Reconciliation
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