INFORMATION OBTAINED FROM BANK STATEMENT

Question 1

Standing order

Answer 1

where a business instructs its bank to make fixed payments at regular intervals

Question 2

Direct debit

Answer 2

where one business authorises another to take payments out of its bank account and the amount varies according to how much is owed

Question 3

Debit card transactions

Answer 3

Payments made using a debit card. The bank statement will show the payee and the amount paid

Question 4

Credit transfer

Answer 4

receipts or payments directly in or out of the bank account. BACS are the most common method of credit transfer

Question 5

Dishonoured cheque

Answer 5

cheques that have been returned by the bank because there is not enough money in the account to make the payment

Question 6

Bank charges

Answer 6

expenses to a business for using the bank account or interest for being overdrawn: they are taken directly out of the bank account by the bank