To Prevent an Overdraft or "Bounced Check," It Is Always

question 70

True/False

To prevent an overdraft or "bounced check," it is always a good idea to record each check written in your check register and reconcile your account balance when you receive your monthly bank statement.

---

Definitions:

Planning and Control Tool

Instruments or techniques used in the management process to set objectives, assess future trends, and oversee progression towards desired outcomes.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity situation by comparing its most liquid assets, excluding inventory, to its current liabilities.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, including cash, inventory, and receivables.

Inventory

The total amount of goods and materials held in stock by a business or organization.