What must every person authorized to sign checks for a business complete?

• A. A bank loan agreement
• B. A signature card for the bank
• C. A voided check
• D. A bank statement

Answer: (B)

The key idea is that the bank needs a record of who is allowed to sign checks. Every person authorized to sign must have a signature card on file with the bank. This card lists the authorized signatures and lets the bank verify that checks presented for payment match a signer on the account, which supports internal controls and prevents unauthorized disbursements.

A bank loan agreement is unrelated to who can sign checks. A voided check is used to provide account details for setup or direct deposits, not to authorize signers. A bank statement is simply a record of activity and does not establish signing authority.