Hi-1011-chapters 20 & 21- Accounting And Bookeeping/Banking Services Procedures

Invoices should be checked for accuracy because it is important to ensure that the items or services listed on the invoice match what was actually received or provided. Checking for accuracy helps to prevent errors or discrepancies in billing and payment, and ensures that the correct amount is being charged or paid. It also helps to identify any potential fraudulent or incorrect charges, and allows for proper record-keeping and reconciliation of financial transactions. Therefore, it is necessary to check invoices for accuracy to maintain financial integrity and transparency.

Bookkeeping is indeed the daily recording process for accounting. It involves keeping track of financial transactions, such as income, expenses, and investments, in order to maintain accurate and up-to-date financial records. This process is crucial for businesses to monitor their financial health, make informed decisions, and fulfill legal requirements. Therefore, the statement "Bookeeping is the daily recording process for accounting" is true.

Petty cash is a small amount of cash kept on hand by a business for making small, everyday expenses. In this scenario, using petty cash to pay the mailman for postage due on a package is a valid use. Since the amount is small and relates to a regular business expense, it is appropriate to use petty cash for this purpose. Therefore, the given answer, "True," is correct.

The statement is true because the Federal Reserve was indeed designed with the purpose of providing the nation with a safer, more flexible, stable monetary and financial system. The Federal Reserve acts as the central bank of the United States and is responsible for implementing monetary policies, supervising and regulating banks, and maintaining the stability of the financial system. Its primary objectives include promoting maximum employment, stable prices, and moderate long-term interest rates. By fulfilling these roles, the Federal Reserve aims to ensure the stability and smooth functioning of the economy.

Online banking provides the convenience of accessing banking services at any time, allowing customers to perform various financial transactions such as transferring funds, paying bills, and checking account balances. However, despite the round-the-clock availability, there are still certain deadlines associated with specific transactions. For example, transferring funds to another bank account may have a cut-off time after which the transaction will be processed on the next business day. Similarly, bill payments may have due dates, and if not made before the deadline, late fees or penalties may be incurred. Therefore, the statement that online banking has deadlines for some financial transactions is true.

A money order can be purchased at a post office because post offices offer this service to their customers. Money orders are a secure and convenient way to send money, and post offices are trusted institutions that provide this service to individuals who need to make payments or send money to others. By offering money orders, post offices ensure that individuals have a reliable and accessible option for conducting financial transactions.

The explanation for the given correct answer is that the fiscal year is indeed a twelve-month period of time that can start in any month of the year. Unlike the calendar year which always starts on January 1st and ends on December 31st, the fiscal year is used by businesses and organizations to determine their financial reporting and budgeting cycles. It allows them to align their financial activities with the specific needs and demands of their industry, rather than being restricted to a fixed calendar period. Therefore, the statement "The fiscal year is a twelve-month period of time that can start any month of the year" is true.

Personal checking accounts and business accounts do not have the same benefits. Personal checking accounts are meant for individual use and typically offer benefits such as no monthly fees, low minimum balance requirements, and access to mobile banking. On the other hand, business accounts are designed for businesses and may come with features like payroll processing, merchant services, and business-specific perks. Therefore, the statement that personal checking accounts and business accounts have the same benefits is false.

The question asks for something that would not be entered on a financial summary. A financial summary typically includes information related to money, such as earnings and collections. However, the amount of time spent on procedures is not directly related to financial matters and would not be included on a financial summary.

Using checks provides the advantage of protecting the money while it is being deposited into the checking account. This means that the funds are secure and not at risk of being lost or stolen during the deposit process. Checks also provide a record of the transaction, making it easier to track and reconcile expenses. Additionally, checks offer a convenient way to make payments, whether they are large or small, without the need for carrying cash or making online transfers.

A check could be returned if it is missing information because banks require all the necessary details to process a transaction. Missing information such as the date, payee, or signature can make the check invalid or suspicious, leading to its rejection. Banks need complete and accurate information to ensure the check can be properly verified and processed.

The correct answer is to know the company's policies on accepting checks. This is important because every company may have different rules and guidelines regarding accepting checks. By knowing the company's policies, you can ensure that you are following the correct procedures and avoiding any potential issues or mistakes. It also helps in maintaining consistency and professionalism in handling check transactions.

The statement "When the bank uses your money they charge interest to the account" is false. Banks do not charge interest to the account when they use your money. Instead, banks pay interest to account holders for keeping their money in the bank. This interest is a way for the bank to compensate the account holders for the use of their funds.

The two methods of accounting are cash basis and accrual basis. Cash basis accounting records revenue and expenses when cash is received or paid, respectively. This method is simple and straightforward but may not accurately reflect the financial position of a company. Accrual basis accounting, on the other hand, records revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. This method provides a more accurate representation of a company's financial position but requires more complexity in tracking transactions.

Using a fresh set of eyes is a technique for finding an error because it involves having someone else review the work or problem. This person, who has not been previously involved in the process, can provide a new perspective and potentially spot mistakes or inconsistencies that may have been overlooked. By bringing in someone with a fresh perspective, it increases the chances of identifying errors and finding a solution.

The cash flow statement does not list the amount of money owed to the practice. It provides information about the inflows and outflows of cash during a specific period, including operating activities, investing activities, and financing activities. The statement focuses on cash movements and does not specifically address amounts owed to the practice. Therefore, the given statement is false.

A disbursement journal is not commonly known as a checking account. A disbursement journal is a record that tracks all the payments made by a company, while a checking account is a bank account used for depositing and withdrawing funds. These two terms refer to different aspects of financial management and are not interchangeable.

Duplicate entry is not a type of an accounting system.

It is not a good bill paying technique to pay bills when they come in.

False. The payor is who the check comes from and the drawer is who writes the check.