FABM (2nd Quarter) Flashcards
The services intended for this provide incentive for account holders to save and earn minimal interest for keeping a minimum balance.
savings account
Type of bank account that allows the convenience of having multiple transactions, withdrawals and payments through checks suitable for businesses.
current account
Type of savings account with a fixed-term and can only be withdrawn after the lapse of the agreed period
Time Deposit/Certificate of Deposit
withdrawals can be made through designated machines
Debit card or ATM account
used by the depositor to put money in the bank.
Deposit Slip
is a written order to the bank, used by account holders to get money out of the bank.
Withdrawal Slip
issued by the account holder directing a person’s bank to pay a specific amount of money.
Bank Checks
person who issues the check
Drawer
recipient of the money
Payee
bank or other financial institution
Drawee
Steps in preparing a check
- Write the date
- Write the complete name of payee
- Write the exact amount in figure
- Sign the check
becomes invalid after 180 days or 6 months
Stale Check
dated at a future date
Post-dated Check
restricted for payees account and will only be accepted for deposit.
Crossed Check
cannot be honored by the bank because the drawer has no sufficient funds to cover.
Bouncing Check
Bank statement contains relevant information
A. Customer’s Information
B. Bank’s Information
C. Account Information
D. Transactions
monthly report that is prepared to reconcile two reciprocal accounts
Bank Reconciliation Statement
prevent either the company or the bank from recording the transaction in the same period.
Timing differences
erroneously record the transaction either of the company or the bank.
Errors
Three methods
Adjusted method
Book to Bank
Bank to Book
additions made by the bank to the account of the depositor.
Credit Memo
collection of receivables
Bank Collection
Addition to the depositors account
Interest Income
deductions made by the bank to the account of the depositor.
Debit Memo
- monthly fees charged by the bank for its services.
- fees such as check printing and processing
Bank service charges
dishonored and returned by the bank
NSF Check
What does NSF mean in NSF check?
Not sufficient fund
Items erroneously recorded by the company
Book Errors
amounts received and recorded by the company but not yet deposit or the amount deposited after the bank cut off time
Deposit in Transit
checks issued by the company to payees but not yet encashed with the bank or cleared by the bank
Outstanding Checks
Items erroneously recorded by the bank.
Bank Errors
amount of income used to calculate the taxes owed by an individual or a company
Taxable Income
amount of tax to be paid to the government by a taxpayer
Tax Due
is the compulsory contribution that people pay to the government.
Tax
Three Inherent Powers of the Government
- Eminent Domain
- Police Power
- Taxation
power of the government takes over privately owned land, matters relating to the payment of just compensation being used for public considerations.
Eminent Domain
power of a state, provincial, or national government to take private property for public use.
Eminent Domain
power of the government to make policies that encourage the public’s health, morality, protection, and the well-being of the people.
Police Power
capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.
Police Power
the ability of the government to collect taxes which is used to fund various projects needed by the people. The process by which our government, through our lawmakers, raises income to pay its necessary expenses.
Taxation
are generally an involuntary fee levied on individuals or corporations that is enforced by a government entity, whether local, regional or national in order to finance government activities.
Taxation
The Basic Principles of a Sound Tax System
a. Fiscal adequacy
b. Theoretical justice or equality
c. Administrative feasibility
revenues should be adequate to sustain government spending.
Fiscal adequacy
taxes are fair and reasonable to the capabilities of the taxpayer to pay.
Theoretical justice or equality
tax legislation enforced efficiently and effectively, preventing further complications and uncertainty on the aspect of tax-paying citizens.
Administrative feasibility
“Why do we pay taxes?” because of these purposes:
- provides funds to support the government to improve people’s general welfare.
- managing inflation
- helping to reduce negative impacts
- reasonable distribution of income
imposition of taxes on the income of individuals derived from compensation, business trade, self-employed, or a practice of a profession or from property less deductions authorized by the law.
Income taxes
This term refers to the taxpayer’ income for taxation purposes.
gross income
received by an employee working for different companies.
Compensation Income
income generated by an entrepreneur or by different professionals like lawyers, doctors, and accountants.
Business Income
a taxpayer who receives both compensation and business income.
Mixed Income
an income generated by different investments made by an individual.
Passive Income
Aralin niyo yung computation haha
aight bet
eliminates the personal exemption of P50,000 and the additional exemption P25,000.
Republic Act No. 10963 or TRAIN
What is Republic Act No. 10963 (TRAIN)
Tax Reform Act for Acceleration and Inclusion
