FABM 2 WEEK 1.pptx FINDAMENTALS OF ACCOUNTING

FUNDAMENTALS OF ACCOUNTING

1. Types of Bank Accounts FUNDAMENTALS OF ACCOUNTANCY, Business and Management 2 Quarter 1 - Week 1

2. OBJECTIVES Identify the types of bank accounts normally maintained by a business; Define bank account, depositor, cash, withdrawals, drawer, drawee, payee, Savings Account, and Checking or Current Account, Time Deposit (TD), and Unit Investment Trust Funds (UITF);

3. RECALL THE PAST LESSON ON THE BASICS FINANCE. Directions: Let us help the owner to compute for the financial ratio of his business and make an analysis. Expenses to Sale Ratio Return on Assets Return on Equity Asset Turnover Ratio GK Computer Parts Store Statement of Comprehensive Income 2018 2019 Average Total Assets P500,000.00 P650,000.00 Profit 217,000.00 300,000.00 Average Stockholder Equity 333,800.00 270,300.00 Operating Expenses 200,000.00 685,000.00 Net Sales 475,000.00 550,000.00 Operating Expenses to Sale Ratio Asset turnover Ratio Return on Assets Return on Equity Ratio

4. WHAT ARE THE TYPES OF BANK ACCOUNTS? Savings Account, under this there two types the Passbook and ATM Savings Checking or Current Account Time Deposit (TD) Unit Investment Trust Funds (UITF) Savings Account is the easiest and simplest account to maintain; the account that earns minimum interest and may have need minimum balance requirement.

5. Types of Savings Account 1. PASSBOOK booklet used to record the transaction with the bank; and provides time reports of deposits, transfers, interest earnings, tax deducted from the account; the record is shown in chronological order. Figure 1 shows an example of Passbook https:// starrguide.com

6. 2. ATM CARD are used in Automated Teller Machines (ATM) transactions; more convenient to use in terms of withdrawing money than the traditional over-the-counter transactions; and – also serves as debit cards.

7. 2. Checking or Current Account like a savings account but with features added to it; the interest earned is rarer; a bank account that allows a bank client to deposit cash and write checks against of the account balance

8. Important terms to remember in having a checking account a. Drawee - legal and banking terminology used to describe the party ordered by the depositor to pay a certain sum of money to the person presenting a check or draft; the bank on which the check is drawn. b. Payee - is the party to whom the payment is to be made. c. Drawer - the person who signed the check ordering payment by the bank.

9. 3.Time Deposit (TD) in this type of account, the depositor agrees not to withdraw the funds over the contracted period in exchange for a fixed interest rate that is higher than deposit rates; and evidenced by a Certificate of Time Deposits (CTD).

10. Unit Investment Trust Funds (UITFs) are open-ended pooled trust funds made available to interested investors through units of participation which are valued on a market- tomarket basis. enables the investors to earn a profit and suffer losses of stocks or bond investment in those securities. *Confirmation of Participation is issued to clients as proof of placement investment in UITF.

11. What are the contents of the Confirmation of Placement? 1.Name of Investor 2.UITF Account No. 3.Net Asset Value per Unit 4. No. of Units 5. Date of Participation

12. What are the requirements needed in opening a bank account? Individual/Personal Account 1. 2 Valid I.D. 3. Proof of billing 2. Company I.D. 4. School I.D. for students

13. Single Proprietorship 1.Certificate of Registration issued by the Department of Trade and Industry 2. Submitted DTI Application form 3.Mayor’s Permit 4.2 Valid I.Ds. of the Proprietor

14. Partnership/Corporation 1. Certificate of Registration issued by the SEC and other Regulatory Bodies Articles of Incorporation / Partnership / Association and By-laws Notarized Board or Partnership Resolution or Secretary’s Certificate duly certified by the Corporate / Partnership Secretary authorizing the opening of the account and designating the authorized signatories to sign on behalf of the entity 1.Latest General Information Sheet (if applicable) stating: Names of Directors / Trustees / Partners Principal Stockholders owning at least 20% of the outstanding capital stock Primary officers (e.g. President, Treasurer) 2.Photo-bearing ID for each authorized signatory

15. What is a Signature Card and its purpose? contains the details and signatures of the person or persons authorized to write checks on the bank account. each depositor is requested to affix his or her signature three times. this card is issued often used in the opening of a savings account; one of the key functions of the signature card is to verify the validity of the depositor’s signature.

16. THANK You