Acetylcholine is synthesized in the nerve terminal from choline and acetyl-CoA by the enzyme choline acetyltransferase. Once released into the synaptic cleft, acetylcholine is rapidly hydrolyzed by the enzyme acetylcholinesterase into choline and acetate. This rapid degradation ensures that the neurotransmitter does not overstimulate the receptor, allowing for precise control of neurotransmission.