Question

What are some common controls used with a bank account?

Answer 1

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. In this, the bank also provides a withdrawal facility to the bank account holder.

Step 2: Common controls used with a bank account

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.

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.

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.

Bank Statement:

 

          Banks send monthly statements to customers either electronically or in the mail. A bank statement reports the activity in the customer’s account.

Electronic Funds Transfers:

 

In this, controls all the deposits received from the electronic way of the transaction is recorded by the bank.

Bank Reconciliation Statement:

     In this control, a statement is prepared to match the cash and the bank balance of the company.

Answer

Some common controls are signature card, check, deposit ticket, bank statement, bank reconciliation statement, and electronic fund transfer.