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List and Describe the Three Different Types of Transfers Discussed

question 8

Essay

List and describe the three different types of transfers discussed in this chapter.Give a hypothetical example of each to help support your answer.


Definitions:

Cash

Money in the form of coins and banknotes; the most liquid form of assets a company has.

Journalizing

The process of recording transactions in a company's journal before they are posted to the general ledger.

Posting Process

The act of transferring entries from the journal to the respective ledger accounts to keep financial records accurate and up-to-date.

Wrong Amount

Errors in financial transactions that result in the recording of inaccurate figures in accounting systems.

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