Unit 2 study guide

Unit 2 study guide - - and the auditing if the processes to...

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UNIT 2 1) - Money - universally or near-universally accepted - represents value in discrete units - can be freely converted into and out of currency - Cash - currency - demand deposits - checking - savings - time deposits - CD’s - certificates of deposits - government bonds - short term and long term investments - Currency - tangible - defines the monetary unit of value - universally represents that value - does not have to have intrinsic value - Funds - a specific pool of money - a special “amount” of money usually designated or set aside or identified for some purpose - Account - registry for tracking values - generally measured in monetary units, but does not necessarily represent actual currency, cash, or even money 2) The field of Accounting - the field involved with the tracking of values, in, out and between various categories - the categories can include almost anything by which you need to track the movement of value - includes the regulation of the recordkeeping and reporting
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Unformatted text preview: - and the auditing if the processes to ensure compliance with the regulations 3)- Deposits, Direct deposits, electronic funds transfers, and interest adjustments go into a checking accounts.-withdrawal checks, electronic bill pay, automatic bill pay, adjustment fees returned checks (NSF) go out of checking accounts-write a check goes to payee payee receives check and verifies that it is them that is written on the check through their bank money transfers from check writers bank to payees bank-checks and balances o using two independent paths of data to allow verification when processing a transaction-signature card o makes someone authorized to withdrawal from the bank-endorsement o signature (with id) required to tender the check 4)- Unadjusted book balance- doesnt see interest earnings, service fees, NSF returned checks- Unadjusted bank balance- deposits in transit, outstanding checks...
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Unit 2 study guide - - and the auditing if the processes to...

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