Study Guide: Chapter 7, Domain 6: PO 5

Question 1

GAAP
(Generally Accepted Accounting Practices)

Answer 1

Conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. The highest level of such principles are set by the Financial Accounting Standards Board (FASB).

Question 2

Accounting

Answer 2

Recording and reporting of financial transactions, including the origination of the transaction, its recognition, processing, and summarization in financial statements.

Question 3

Audit

Answer 3

A professional examination of a company’s financial statement by a professional accountant or group to determine that the statement has been presented fairly and prepared using Generally Accepted Accounting Principles (GAAP).

Question 4

Internal Control

Answer 4

Process designed to provide reasonable assurance regarding achievement of various management objectives such as the reliability of financial reports.

Question 5

Accrual

Answer 5

The recognition of an expense or revenue that has occurred but has not yet been recorded.

Question 6

Accrual Basis

Answer 6

Recognizes revenue when earned, rather than when collected. Expenses are recognized when incurred rather than when paid. (i.e. When I speak)

Question 7

Cash Basis

Answer 7

Revenues and expenditures are recorded when they are received and paid. (i.e. When I actually receive my check)

Question 8

Bank Reconciliation

Answer 8

A process by which an accountant determines whether and why there is a difference between the balance shown on the bank statement and the balance of the cash account in the firm’s general ledger.

Question 9

Break-Even Point

Answer 9

The point at which total revenues equals total costs. Profit equals ZERO!

Question 10

Chart of Accounts (CoA)

Answer 10

A financial organizationaltoolthat provides a complete listingof every account in an accounting system. An account is a unique record for each type of asset, liability, equity, revenue and expense.

Question 11

First In, First Out (FIFO)

Answer 11

Accounting method of valuing inventory under which the costs of the first goods acquired are the first costs charged to expense.

Question 12

Last In, First Out (LIFO)

Answer 12

Accounting method of valuing inventory under which the costs of the last goods acquired are the first costs charged to expense. Commonly known as LIFO.

Question 13

P/E Ratio

Answer 13

A ratio that is used as a way of measuring investor confidence in a company and comparing stocks for profitability. It is found by dividing market price per share by earnings per share (EPS).

Question 14

Assets…

Answer 14

are cash, accounts receivable, or assets expected to be converted into cash, sold, or consumed either within one year or in the normal operating cycle for the business

Question 15

Non-permanent assets…

Answer 15

are permanent in nature such as land, buildings, equipment.

Question 16

Intangible Assets…

Answer 16

are permanent in nature such as land, buildings, equipment.

Question 17

Current Liabilities…

Answer 17

includes debts due within the current year or accounting period

Question 18

Long term liabilities…

Answer 18

refers to mortgages or long term notes payable after a period of time such as a year. As these debts become due, they are reclassified as current liabilities.

Question 19

The Accounting Equation

Answer 19

Assets = Liabilities + Owner’s Equity
OR
Assets – Liabilities = Owner’s Equity

Question 20

Revenue

Answer 20

refers to the amount received for goods or services rendered. Revenue is realized and recorded when the sales are made or when the service takes place.

Question 21

Expenses…

Answer 21

are outflows of resources or costs incurred by the company. This can include salaries, taxes, rent, utilities, supplies used, and depreciation. (The difference between revenues and expenses is a net profit or loss for the company.)

Question 22

REVENUE – EXPENSES = INCOME

Answer 22

REVENUE – EXPENSES = INCOME

Question 23

A balance sheet…

Answer 23

reports a company’s assets, liabilities and shareholders’ equity at a specific point in time (balance on that day). It is a financial statement that provides a snapshot of what a company owns and what it owes, as well as the amount invested by shareholders.

Question 24

The balance sheet…

Answer 24

shows a company’s resources or assets while also showing how those assets are financed whether through debt as shown in under liabilities or through issuing equity as shown in shareholder’s equity. The balance sheet provides investors and creditors alike with a snapshot as to how effectively a company’s management is using their resources.

Question 25

A profit and loss statement…

Answer 25

often referred to as the income statement, is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year. These records provide information about a company’s ability – or lack thereof – to generate profit by increasing revenue, reducing costs, or both.

Question 26

The profit and loss statement…

Answer 26

is also referred to as “statement of profit and loss,” “statement of operations,” “statement of financial results,” and “income and expense statement.”

Question 27

The P&L or income statement…

Answer 27

provides the top line and bottom line for a company. The statement begins with an entry for revenue, known as the “top line,” and subtracts the costs of doing business, including cost of goods sold, operating expenses, tax expense, interest expense and any other expenses (sometimes referred to as extraordinary expenses or one-time expenses). The difference, known as the bottom line, is net income, also referred to as profit or earnings.

Question 28

The P&L statement…

Answer 28

reveals the company’s realized profits or losses for the specified period of time by comparing total revenues to the company’s total costs and expenses. Over time, it can show a company’s ability to increase its profit, either by reducing costs and expenses or by increasing its sales. Companies publish income statements annually, at the end of the company’s fiscal year, and may also publish them on a quarterly basis. Accountants, analysts, and investors study a P&L statement carefully, scrutinizing cash flow and debt financing capabilities.

Question 29

From an accounting standpoint, revenues and expenses are listed on the P&L statement when they are incurred, not when the money flows in or out.

Answer 29

From an accounting standpoint, revenues and expenses are listed on the P&L statement when they are incurred, not when the money flows in or out.

Question 30

Net Income or Net Profit

Answer 30

The excess of net revenue over expenses

Question 31

Net Loss

Answer 31

When expenses exceed revenue.

Question 32

Statement of Owner’s Equity…

Answer 32

shows money put in by the stockholders or owners as capital

Question 33

Statement of Cash Flows

Answer 33

summarizes sources and uses of cash; indicates whether enough cash is available to carry on routine operations. Typically created monthly or on an as needed basis. It is important that a company has enough cash on hand to fund its payroll and pay other bills.

Question 34

Bonds

Answer 34

Bonds do not represent ownership (like stocks), but instead represent a debt owed by the issuer.

Question 35

Stocks and bonds tend to have an inverse relationship in price. (Stocks up – bonds down and vice versa)

Answer 35

Stocks and bonds tend to have an inverse relationship in price. (Stocks up – bonds down and vice versa)

Question 36

The interest from corporate bonds is taxable. Risk can vary.

Answer 36

The interest from corporate bonds is taxable. Risk can vary.

Question 37

Investment grade bonds are considered low risk.

Answer 37

Investment grade bonds are considered low risk.

Question 38

Speculative bonds (aka junk bonds) are considered medium to high risk.

Answer 38

Speculative bonds (aka junk bonds) are considered medium to high risk.

Question 39

Government bonds are issued by U.S. Treasury and other federal government agencies. Low risk. Do not have to pay state or local taxes on income.

Answer 39

Government bonds are issued by U.S. Treasury and other federal government agencies. Low risk. Do not have to pay state or local taxes on income.

Question 40

Municipal bonds are issued by states, counties, cities and towns. You do not have to pay federal, state or local taxes on the income from municipal bonds. Considered relatively safe investments.

Answer 40

Municipal bonds are issued by states, counties, cities and towns. You do not have to pay federal, state or local taxes on the income from municipal bonds. Considered relatively safe investments.

Question 41

Mutual Funds…

Answer 41

an investment fund that consists of stocks, bonds and other investments focused on an investment strategy (such as balance – good earnings with acceptable risk or growth – high earnings with greater risk)

Question 42

Mutual Funds…

Answer 42

Operated through professional investment company based on the fund’s investment objectives.

Question 43

Mutual Funds…

Answer 43

Individual investor owns a small fraction of each share of stock or bond that is purchased.

Question 44

Mutual Funds…

Answer 44

Mutual funds are diversified – they contain a variety of investments, which reduces risk.

Question 45

Operating Budgets

Answer 45

outline anticipated revenues and expenses for a period of time and project cash flow in and out.

Question 46

Master Budgets

Answer 46

detail ALL financial planning areas of a business.

Question 47

Flexible Budgets

Answer 47

include a range of production units and show a comparison between the various levels.

Question 48

Static Budgets

Answer 48

are geared to a single level of activity and include actual costs vs. budgeted costs showing the difference (or variance) between the two.

Question 49

If actual costs exceed the budgeted costs the variance is…

Answer 49

UNFAVORABLE

Question 50

If the budgeted amount exceeds the actual cost the variance is…

Answer 50

FAVORABLE

Question 51

General Ledger

Answer 51

A general ledger is the report of all of the company’s accounts. In its simplest form, the top half of a ledger page is divided from the bottom half by a line. Credits are recorded on one side of the line and debits are recorded on the other side of the line. The general ledger represents a combination of a number of journals, which might include the cash receipt journal, the cash payments journal, the sales journal, the sales returns journal, the purchases journal, the purchases returns journal, and the general journal.

Question 52

Combination Journals

Answer 52

In combination journals, simple financial transactions are recorded in one of the journal accounts as a single line entry. Sometimes a single financial transaction affects more than one journal account. These transactions are referred to as compound journal entries, complex journal entries or combined journal entries. These transactions require multiple line entries.

Question 53

Time Frame

Answer 53

One big difference between a general ledger and a combination journal is the amount of time each covers. A general ledger provides financial information from all journal accounts on a periodic basis, typically monthly, though some ledgers are compiled weekly, quarterly or annually. Entries into combination journals are recorded as each financial transaction occurs, and either updated immediately or at the end of each business day.

Question 54

Common Uses

Answer 54

The general ledger provides management and auditors with a broad overview of the financial health of the organization. It includes total credits and debits. Combination journals detail individual transactions. General ledgers are typically organized in a simple two-column configuration of credits and debits on a single page, while combination journals might include multiple columns from all accounts encompassing multiple pages.

Question 55

Debits and Credits

Answer 55

Debits are posted on the left side of T-Account Journals and credits are posted on the right side. The account being debited is always listed first.

Question 56

Debits and Credits

Answer 56

YOUR DEBITS MUST ALWAYS EQUAL YOUR CREDITS.

Question 57

Asset Accounts

Answer 57

increase by debits (left side) and decrease by credits (right side)

Question 58

Liability Accounts

Answer 58

increase by credits (right side) and decrease by debits (left side)

Question 59

What is a T-Account?

Answer 59

An informal term for a set of financial records that uses double-entry bookkeeping. The term describes the appearance of the bookkeeping entries.

Question 60

Cash

Answer 60

is the first asset listed on the balance sheet

Question 61

Rent Expense Account

Answer 61

Long term liability, since rent is owed and you’re committed for a certain period of time

Question 62

Cash Account

Answer 62

Asset, you have money!

Question 63

Accounts Payable Account

Answer 63

Tracts the company’s short term obligations (current liability)

Question 64

Accounts Payable

Answer 64

Amounts due to vendors or suppliers for goods or services received that have NOT YET BEEN PAID FOR.

Question 65

Accounts Payable Balance

Answer 65

The sum of all outstanding amounts owed to vendors.

Question 66

The increase or decrease in total AP from the prior period appears on the company’s balance sheet.

Answer 66

The increase or decrease in total AP from the prior period appears on the company’s balance sheet.

Question 67

Management…

Answer 67

…may choose to pay its outstanding bills as close to their due dates as possible in order to improve cash flow.

Question 68

Proper double-entry bookkeeping…

Answer 68

…requires that there must be an offsetting debit and credit for all entries made into the general ledger.

Question 69

To record accounts payable…

Answer 69

the accountant credits accounts payable when the bill or invoice is received.

Question 70

What is the ultimate goal of HR?

Answer 70

Attract, engage, develop, reward, and retain talent.

Question 71

Talent Acquisition (types of services)

Answer 71

Recruiting and sourcing candidates for hire, screening, interviewing, offering letters, & onboarding.

Question 72

Talent Acquisition (types of job roles)

Answer 72

Talent Sourcer, Coordinator, Recruiter, Talent Acquisition, Staffing Manager

Question 73

AAP (Affirmative Action Plan)

Answer 73

A written set of specific results-oriented efforts. procedures and demographic/workforce reporting to be followed by all US federal contractors holding contracts of $50,000 or more and with 50 or more employees.

Question 74

Employee relations

Answer 74

Refers to management & staff practices & communications regarding workplace decisions, employment laws, grievances, & problem/conflict resolution.

Question 75

Labor relations

Answer 75

Refers to unions, policies and procedures, & collective bargaining agreements.

Question 76

Employment-at-will

Answer 76

A legal doctrine stating the employer or employee may terminate an employment at any time, for any or no reason, and with or without notice.

Question 77

Title VII of the Civil RIghts Act (1964)

Answer 77

States that an employer cannot discriminate based on five protected classes (race, religion, color, gender, national origin). Employers (public or private) that employ 15 or more people are subject to Title VII. Some state and local laws subject these laws to employers with fewer than 15 employees.

Question 78

The EEOC (Equal Employment Opportunity Commission)

Answer 78

The US federal agency responsible for publishing guidelines, enforcing EEO laws, & investigating complaints based on race, religion, gender (inc. pregnancy), national origin, age, or disability.

Question 79

Employment branding

Answer 79

Positions a particular organization to project a public image and culture that current, past, and potential job seekers perceive as the employment experience at the company:
* branding helps the organization be perceived as an employer of choice in the marketplace
* branding encourages people to want to work for a specific organization.

Question 80

Employer Information Report (EEO-1)

Answer 80

(aka standard form 100); an annual report in the US that shows the representation of female and minority employees in an employer’s total workforce. Any employer with 100 or more employees (50 for gov’t contractors) must file this form each year.

Question 81

ERISA
(Employee Retirement Income Security Act)

Answer 81

a US federal law that sets minimum standards for pension and health plans in private industry to provide protection for individuals in these plans. ERISA defines fiduciary resp. for those who manage & control plan assets, req. plans to establish a grievance & appeals process for participants, & gives participants the right to sue for benefits and breaches of fiduciary duty.

Question 82

L&D (Learning & Development)

Answer 82

Refers to the team within the organization that provides training and educational opportunities within an org. to enhance existing skills, increase job-related knowledge, and build employees’ performance competencies. Usually aligns with the HR dep’ts workforce plan to achieve strategic organizational goals and objectives.

Question 83

Performance Management

Answer 83

The performance assessment of employees to gauge their progress toward individual, departmental, and organizational skills.

Question 84

Talent acquisition involves:

Answer 84

The process of finding proper sources of qualified candidates (sourcing); the strategic approach to identifying, attracting, and onboarding top talent; and the HR activities that build and maintain a workforce.

Question 85

Employee relations programs…

Answer 85

…are intended to bolster employee productivity, motivation, and morale.

Question 86

Employee relations programs…

Answer 86

…support employees and employers by ensuring effective use of employee skills and abilities to accomplish the organization’s mission

Question 87

Employee relations programs…

Answer 87

…provides fair and consistent treatment to all employees., which builds commitment to jobs and increases loyalty to the organization.

Question 88

Employee relations programs…

Answer 88

…focuses on issues directly affecting employees, such as pay and benefits, work-life balance, and safe working conditions.

Question 89

How do employees benefit from an employee relations program?

Answer 89

Policies supporting the organization’s philosophies, mission, and values; procedures for addressing employee-related issues (how to resolve problems in the workplace); employee relations strategies (based on industry, location, company size and ind. leadership philosophies.

Question 90

How do employees benefit from an employee relations program?

Answer 90

Communication channels through which management informs workers of the latest business developments and allows employees to express feelings, opinions, concerns, & question or challenge management decisions or labor issues.

Question 91

Sexual harassment…

Answer 91

…a form of discrimination as outlined in the US Title VII Equal Employment Opportunity Act.

Question 92

How is sexual harassment defined?

Answer 92

Unwelcome sexual advances, request for sexual favors, & other verbal or physical conduct of a sexual nature.

Question 93

What is a condition of sexual harassment?

Answer 93

Quid pro quo (Latin for “something for something); applies when an authority figure offers or even hints that they will give the employee something (such as a raise or promotion) in return for that employee’s satisfaction of a sexual nature.

Question 94

What is a condition of sexual harassment?

Answer 94

A hostile environment is created when an employee feels uncomfortable or frightened to be in the workspace due to offensive behavior, intimidation, or abuse by a coworker or superior.

Question 95

What is an organizational policy?

Answer 95

A course or method of action to guide decisions.

Question 96

An organizational procedure is…

Answer 96

…a series of established or approved actions accomplished in a certain way or in a specified sequence to implement a workplace policy.

Question 97

Why are policies and procedures essential in the workplace?

Answer 97

They facilitate and encourage professional practices and behaviors; promote compliance with regulations statutes, and accreditation requirements (HIPAA, EEOC, and ERISA requirements).

Question 98

Why are policies and procedures essential in the workplace?

Answer 98

Reduce inconsistencies and variations in productivity and outcomes; standardize practices across multiple departments within an organization.

Question 99

Why are policies and procedures essential in the workplace?

Answer 99

Reduce reliance on memory, which when overtaxed can be a major source of human errors or oversights.

Question 100

What are the circumstances in which harassment can occur?

Answer 100

They can be the victim’s superior, a supervisor in another area, an agent of the employer, a coworker, or a non-employee such as a vendor representative.

Question 101

How can you ensure understanding and adherence to policies and procedures?

Answer 101

*Ask mgr. or HR for clarification if the policies, etc. are unclear.
*Read notices and email updates to stay informed
* Network with colleagues and management (formally & informally)
* Get involved in opportunities to develop policies (serving on a task force, etc.)
* Attend staff or mgmt. meetings to hear updates on org. changes

Question 102

What can organizational policies and procedures do?

Answer 102

They can define, regulate, & inform about the operations of an organization so empl. can knowingly and willingly comply with expected behaviors.

Question 103

What is the history of performance evaluations?

Answer 103

Formal evaluations date back more than 60 years.
* originally used to justify income, wages or salary increases.

Question 104

Performance appraisals have been broadened to…

Answer 104

…include many facets of a professional’s work history, achievements, areas for improvement, & future goals.

Question 105

What are SMART goals?

Answer 105

Specific
Measurable
Attainable
Relevant
Time-bound

Question 106

Debits and credits

Answer 106

Basic entries in financial journals based on what’s known as the DOUBLE ENTRY SYSTEM

Question 107

Where are debits and credits recorded?

Answer 107

DEBITS: left side
CREDITS: right side

Question 108

What’s the definition of DEBITS and CREDITS?

Answer 108

If you DEBIT a cash account, you INCREASE the amount of cash on hand; if you debit an ACCOUNTS PAYABLE account, you DECREASE the amount of the PAYABLE LIABILITY.

Question 109

Debit and credit cash

Answer 109

Debit cash: whenever cash is RECEIVED.
Credit cash: whenever cash is PAID OUT.

Question 110

Chart of accounts

Answer 110

A listing of all the different accounts that go in the GENERAL LEDGER.

Question 111

Financial statements are…

Answer 111

…a road map showing the performance of the company.

Question 112

What are the typical components of FINANCIAL STATEMENTS?

Answer 112

BALANCE SHEET: detailing what the company owns and what it owes.
INCOME STATEMENT: showing company performance by detailing its profits and losses.
STAKEHOLDER’S EQUITY: this shows how equity (company shares held by stockholders) changes from one year to the next and how it affects the balance sheet.
CASH FLOW: statement showing the movement of cash during the reporting period.
FOOTNOTES: this shows the details of the balance sheet and income statements

Question 113

What is another name for a balance sheet?

Answer 113

STATEMENT OF FINANCIAL POSITION

Question 114

What is a budget?

Answer 114

A tool to help align the goals and strategic objectives of an organization.

Question 115

What are the basic elements of a budget called?

Answer 115

Expenses (discretionary and nondiscretionary) & revenue.

Question 116

What should you consider when assembling a budget?

Answer 116

• Personnel & non-personnel expenses for an operation. All items in each category should include an explanation of how the figures are calculated.

Question 117

What steps should the budgeting process follow to create, track, and balance the budget?

Answer 117

• Strategic vision
• Goals
• Revenue projection
• Fixed cost projections
• Variable costs
• Goal-related projects
• Ensuring the BUDGET IS BALANCED

Question 118

Strategic vision

Answer 118

Cannot be accomplished without goals; goals require projects, & projects require funding.

Question 119

Goals…

Answer 119

…support the overall mission; taking accountability for every goal requiring financial support.

Question 120

Revenue projections…

Answer 120

Support accountability for goals; based on previous financial performance and projected income growth.

Question 121

Fixed cost projections…

Answer 121

Include payroll, utilities, and rent. These are “fixed” because they can be predetermined with a high degree of certainty.

Question 122

Variable costs…

Answer 122

…include overtime, supplies, and materials. They should be budgeted and the actual expenses incurred should be MANAGED AGAINST THE BUDGETED NUMBERS.

Question 123

Goal-related projects

Answer 123

Should be budgeted under the appropriate department…

Question 124

A balanced budget…

Answer 124

The last step in budgeting; variances between budgeted revenues & expenses should be reconciled. Management at every level should track the budget, preferably MONTHLY so any issues can be corrected quickly.

Question 125

What is petty cash?

Answer 125

Small, accessible amounts of cash for minor business expenses (parking fees, postage, & other small expenses).

Question 126

A petty cash fund MUST be accounted for with proper documentation…

Answer 126

1. The person requiring cash completes a VOUCHER for disbursement of funds
2. The custodian approves the voucher and provides the funds from PETTY CASH (typically a locked cash box or drawer)
3. The person submits a RECEIPT to the custodian once the purchase is made.
4. The custodian logs each disbursement in a LEDGER or other record
5. Extra cash left after the purchase is returned to the fund

Question 127

ATM (automated teller machine)

Answer 127

an electronic unit that allows customers basic financial transactions such as deposits, withdrawals, & the ability to check balances; usually available 24 hours a day.

Question 128

Automatic deductions

Answer 128

A convenient way to pay recurring expenses; sometimes referred to as ACH TRANSACTIONS (automated clearning house–a US based electronic network for clearing financial transactions)

Question 129

Cash disbursement journal

Answer 129

• used to record all expenses
• similar to a checkbook ledger where expenses and deposits are recorded
• entries are based on certain expense codes & placed in the appropriate columns in the journal, which is used to create annual balance sheets & other financial statements

Question 130

Cash short and over

Answer 130

An account in the income statement documenting the availability of funds in a cash account. Most commonly used for petty cash funds. If there’s a deficit=EXPENSE; overage=REVENUE

Question 131

Certificate of deposit (CDs)

Answer 131

Bank accounts that have a fixed requirement for the amount on deposit & a fixed length of time during which the amount must remain on deposit; typically pay more than a regular savings account.

Question 132

Checking account

Answer 132

A bank account on which the owner can write checks to make payments for goods and services; should be RECONCILED AGAINST THE BANK STATEMENT on a monthly basis.

Question 133

Debit cards

Answer 133

Payment cards used to pay for goods and services from a checking or savings account without needing to carry cash or checks.

Question 134

Direct deposit

Answer 134

An electronic transfer from the payer’s account directly to the recipient’s account.

Question 135

Electronic banking

Answer 135

Refers to any non-paper transaction, such as electronically transferring funds from one account to another rather than using paper checks or cash transfers.

Question 136

Facsimile signature

Answer 136

A reproduction of an actual signature that can be saved & inserted into electronic documents or can be added by imprinting or stamping.

Question 137

FDIC (Federal Deposit Insurance Corporation)

Answer 137

Created by the Banking Act of 1933 and operates as an independent agency. Insures deposits against bank failure, maintains confidence in the banking system, & ensures stability in the system by promoting sound banking practices.

Question 138

Interest

Answer 138

A percentage paid by the bank into a bank account based on the account structure and the amount of money on deposit.

Question 139

Lock box

Answer 139

A box that’s accessible by the bank & used by an organization that wants a bank to collect its accounts receivables when customers send payments. The bank can access the lock box and process the payments for the company.

Question 140

Overdraft

Answer 140

Refers to money being drawn on an account that exceeds the amount actually on deposit.

Question 141

Safe deposit box

Answer 141

A box kept in the bank’s vault and used by bank customers to store valuables (such as marriage licenses & property deeds).

Question 142

Savings account

Answer 142

Pays variable amounts of interest depending on the account structure and the amount of money on deposit. These accounts do not include checks or debit cards.

Question 143

Statement reconciliation

Answer 143

Involves comparing the monthly bank statement transactions with the transactions recorded in the checkbook ledger. Considered to be reconciled when all transactions match & the account balance at the end of the statement month matches the statement ending balance.

Question 144

Deposits

Answer 144

Counts cash and checks and calculates the total.

Question 145

Withdrawals

Answer 145

Takes money from an account.

Question 146

Transfers of cash

Answer 146

Typically accomplished online as ELECTRONIC TRANSFERS through the online banking system.

Question 147

What’s the difference between the ACCOUNT BALANCE and AVAILABLE BALANCE?

Answer 147

The account balance shows the total amount in the account; available balance reflects pending deposits or withdrawals.

Question 148

Safe money-handling procedures

Answer 148

• Restrict access to cash-handling & storage areas–authorized personnel only.
• All cash and related items must be stored in a fireproof safe in a secure area.
• The amount of funds secured in a safe or vault overnight, during weekends, or long holidays should be kept to a reasonable minimum. Excess funds should be deposited in the designated depository.

Question 149

What’s a project?

Answer 149

A temporary endeavor undertaken to create a unique product, service, or result, as defined by PMI (Project Management Institute); has a beginning & end date & is unique in that it sits outside of day-to-day operations.