BSB110 Lecture Notes - Lecture 8: Electronic Funds Transfer, Bank Reconciliation, Cash Cash
Document Summary
Many business transactions now utilise electronic payment methods. Credit cards are a common form of payment for goods and services. Eftpos and credit card transactions provide benefits to businesses due to reduction in staff costs and less risk associated with cash handling. Electronic funds transfer provides nearly instant payment and reduces transaction costs. Cash is the most desirable asset because it is readily convertible into any other asset. Cash consists of: cash on hand (notes and coins) cash at bank cheque accounts cash equivalents (bank overdrafts, deposits on money market, 90-day bank acceptance bills). The use of a bank contributes significantly to good internal control over cash by: Minimising the amount of cash that must be kept on hand. Providing a double record of all bank transactions: one by the business one by the bank. Helping a company safeguard its cash by using a bank as a depository and clearing house for cheques received and written.
