When Reporting Errors or Unauthorized Transactions,it Is Best to Notify

question 65

Multiple Choice

When reporting errors or unauthorized transactions,it is best to notify your bank

• A) by telephone
• B) by letter,keeping a copy for your files.
• C) by telephone and follow up with a letter and keep a copy for your files
• D) none of the above

Grasp the concept of pro forma statements and their purpose in financial planning and analysis.

Accurately record and adjust prepaid expenses and unearned revenues in the accounting records.

Understand the process of closing the dividend account and its impact on the retained earnings.

Understand the process and purpose of preparing an adjusted trial balance.

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Definitions:

Endowment Fund

A financial asset, in the form of donations, made to non-profit organizations that uses the generated income for a specific purpose.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounted cash flow analysis to assess the profitability of an investment.

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Interest Rate

The interest rate applied to a loan, frequently shown as an annual percentage of the loan's outstanding figure to the borrower.