Parts of a Check Diagram

Questions and Answers

What is the Account Holder's (Drawer) Name and Address?

The place to make notes about why you are writing the check

The person who will be paid by the check

The name and address of the person who has the checking account (correct)

The number that identifies your bank

Who is the Payee?

The person who will be paid by the check

What is the purpose of a Check Number?

To help keep track of checks for both the user and the bank

The date on a check can be postdated.

True Signup and view all the answers

How should the Printed Amount be formatted on a check?

$20.00 Signup and view all the answers

What does the Written Amount on a check represent?

The amount written out in words Signup and view all the answers

What information is included in the Account Holder's Bank (Drawee) Information?

Bank information printed on the checks Signup and view all the answers

What is the purpose of the Memo Line on a check?

To make notes about why you are writing the check Signup and view all the answers

What is a Routing Number?

A number used to identify your bank during a financial transaction Signup and view all the answers

What does the Account Number signify?

Your specific account at the bank Signup and view all the answers

What is an Authorized Signature on a check?

The signature of the person writing the check Signup and view all the answers

Study Notes

Check Parts Overview

Account Holder's (Drawer) Name and Address identifies the person or people who own the checking account.
Payee is the individual or entity who receives the funds from the check.

Check Essentials

Check Number is unique for each check, aiding in tracking and preventing misuse; using checks out of order may trigger bank alerts.
Date indicates when the check is issued; postdating is permitted but can lead to complications.

Amount Specifications

Printed Amount should be clearly written in numerical format within the designated box, starting near the left edge to secure the amount.
Written Amount must express the monetary value in words; utilize fractions for cents and draw a line to prevent alterations.

Bank Information

Account Holder's Bank (Drawee) Information is printed on the check to indicate the financial institution managing the account.

Additional Check Features

Memo Line allows for notes regarding the check's purpose or necessary details, like invoice numbers.
Routing Number is essential for identifying the bank involved in the transaction, unique to each financial institution.
Account Number designates the specific checking account associated with the check.

Signature Requirement

Authorized Signature is required to validate the check; it must match the signature on record with the bank for authenticity.

Description

This quiz focuses on key terms and definitions related to the components of a check. Understand the roles of the account holder, payee, and check number to enhance your financial literacy. Perfect for those learning about banking and checks.