The System Whereby Funds Are Moved Between Computer Terminals Without

question 16

Multiple Choice

The system whereby funds are moved between computer terminals without use of checks is

• A) electronic funds transfer.
• B) float.
• C) a lock-box system.
• D) magnetic character recognition.

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Definitions:

Closing the Revenue

The process of finalizing all revenue accounts and transferring their balances to permanent accounts at the end of an accounting period.

Capital Account

An account on the balance sheet representing the cumulative amount of investment in the business by the owners or shareholders, plus retained earnings.

Consent

Agreement or approval given freely and knowingly by a competent individual.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal amount.