Checking Accounts
What is the name of the 4 digit code people use for their bank accounts?
PIN / Personal Identification Number
Accountants are expected to follow a set of standards known by its 4 letters, which are?
GAAP
A number or range of numbers used to determine how well a person is at borrowing and paying back credit is:
Credit score
In a loan, what is the principal?
The starting balance
What is an example of a liability?
Answers will vary, but should be some kind of debt that is paid off
What word do we use when a checking account's balance goes below zero?
Overdraft / overdrawn
What does CPA stand for?
Certified Public Accountant
Secured loans come with something extra where the person borrowing the loan must put property on the line - that property is also called:
Collateral
APR stands for?
Annual Percentage Rate
Why do people budget their money?
Any answer about saving money for something or trying to spend less
Why might the ATM charge a withdrawal fee?
The ATM belongs to a different bank than the one a person's checking account belongs to (or some variation of this answer)
In the context of T-Accounts, debits and credits go where?
Debit - left side, credit - right side
When a person does not pay back their loan or credit on time, they become (or enter a period of)
delinquent / delinquency
What is a reasonable consequence for a person who does not pay their debt back and is between 1 and 30 days overdue?
Warnings, small fees, phone calls or letters (anything that's not legal consequences or collateral taken away)
Give an example of a liquid asset
Cash, jewelry, any item that can quickly be converted into money
Define or describe the purpose of a stop payment order
This is where a person stops a check from being processed
What field of work would it be if an accountant was looking for sketchy or criminal issues in financial records as part of an investigation?
Auditor
What is the difference between income and revenue?
Income is money a person makes for doing work. Revenue is money a business makes for selling stuff.
When a person takes money out of the ATM using a credit card, they are using a feature called?
Cash advance
i = PRT is the formula for?
Simple interest
Name 5 features found on the front side of a check AND tell me where each of those features are located
Answers will vary
What does a bookkeeper do, and what preferred method of bookkeeping would the person use to properly complete their job?
A bookkeeper records information about money and transactions to keep track of it all. The bookkeeper would be using the double-entry method
What is the difference between current balance and available balance?
Current balance is the total amount of money a person will have in their checking account. Available balance is money that person can use right away
People kept taking money out of the bank, banks ran out of money and had to shut down
What is the difference between deferment and forbearance, and which comes first?
Deferment comes first. Forbearance continues to add interest even though a person is delaying payment