21. Electronic funds transfer (EFT) is the use of electronic communication transfer of cash from one party to another.
22. Canceled checks are a way to confirm whatthe bank has paid and deducted from the customer's account during the period.
23. A check involves threeparties: the maker who signs the check, the payee who is the recipient, and the bank on which the check is drawn.
24. Internal control devices for banking activities include signature cards, deposit tickets, checks, and bank statements.
25. On a bank statement, deposits are listed as debits because the bank increases its cash account when the deposit is made.
26. The days' sales uncollected ratio measures a company's ability to manage its debt.
27. The days' sales uncollected ratio reflects the liquidity of accounts receivable.
28. The days' sales uncollected ratio is calculated by dividing accounts receivable by net sales and multiplying this quotient by 365.
29. When evaluating the days' sales uncollected ratio, generally the less time that money is tied up in receivables often translates into increased profitability.
30. A company had $12,000 in accounts receivable and $320,000 in net sales for the current period. Its days' sales uncollected is equal to 13.7 days.