BSCS Officer Cash Exam flashcards
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33 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Simple interest formula
- Simple interest equals principal multiplied by rate multiplied by time, divided by 100. It is charged only on the original principal, not on accumulated interest.
- Compound interest formula
- Amount equals principal times (1 plus rate divided by 100) raised to the power of time. Compound interest is the amount minus principal.
- Successive percentage change
- Two successive changes of a percent and b percent produce a net change of a plus b plus ab divided by 100. This applies to markups followed by discounts.
- Bank reconciliation purpose
- It explains the difference between the cash book balance and the bank statement balance using deposits in transit, outstanding cheques, bank charges and errors.
- Suspense account
- A temporary ledger account used to hold an unexplained difference so that the trial balance agrees. It must be investigated and cleared promptly.
- Double-entry rule
- Every transaction is recorded with equal debits and credits. Debits increase assets and expenses; credits increase liabilities, equity and income.
- Nostro account meaning
- A nostro account is our bank's account held with a foreign correspondent bank in that bank's currency. It is used to settle international payments.
- KYC definition
- Know Your Customer is the process of identifying and verifying a customer's identity, address, beneficial ownership and source of funds before and during the relationship.
- STR filing requirement
- A Suspicious Transaction Report is filed with the Financial Monitoring Unit when a transaction has no apparent economic purpose. Tipping off the customer is prohibited.
- CTR threshold
- A Currency Transaction Report is filed for cash transactions at or above the regulator's threshold, commonly two million rupees for individuals and two and a half million for legal persons.
- PEP definition
- A Politically Exposed Person holds or has held a prominent public position. Such customers require senior management approval, source-of-funds checks and enhanced monitoring.
- Record retention period
- Identity documents and transaction records must be retained for at least five years after the business relationship ends or the transaction is completed.
- Dual control principle
- Two authorised officials must jointly perform sensitive operations such as vault opening, cash chest handling and large remittances, so no single person controls the asset.
- Vault register entry
- Each vault movement records date, time, persons present, amount and purpose, and is initialled by both custodians to create an audit trail.
- Teller end-of-day balancing
- The teller totals receipts and payments, reconciles them to the system blotter, counts physical cash, and reports any difference to the head teller.
- Cash in transit control
- Remittances are insured, escorted and counted by the receiving officer against the remittance advice before the carrier is released and signs off.
- Counterfeit note handling
- A suspected counterfeit note is impounded, a receipt is issued to the presenter, and the matter is reported to the branch manager and regulator per procedure.
- Cash difference treatment
- Any shortage or excess found at balancing is booked the same day to a difference or suspense account and reported, never adjusted silently.
- Note sorting rule
- Soiled or mutilated notes are separated and never reissued to the public. Fit notes are returned to circulation and unfit notes are sent to the currency chest.
- Cash balance formula
- Closing cash equals opening cash plus receipts minus payments. The physical count must equal this computed figure at every balancing point.
- Trial balance limitation
- A trial balance proves that total debits equal total credits, but it cannot detect errors of omission, wrong account posting or compensating errors.
- Accounting equation
- Assets equal liabilities plus equity. Every journal entry preserves this balance because each transaction affects at least two accounts equally.
- SBP establishment date
- The State Bank of Pakistan was established on 1 July 1948 and serves as the central bank and banking regulator, headquartered in Karachi.
- Pakistan fiscal year
- Pakistan's fiscal year runs from 1 July to 30 June. The federal budget is presented in June before the new year begins.
- Roshan Digital Account
- A facility allowing non-resident Pakistanis to open and operate bank accounts in Pakistan remotely, supporting remittances and investment in local assets.
- KSE-100 index
- The benchmark index of the Pakistan Stock Exchange, tracking the performance of the largest listed companies by market capitalisation on the PSX.
- MT103 message
- A SWIFT message used for a single customer credit transfer, carrying payer, payee, amount, currency and remittance information between banks.
- Absolute cell reference
- A reference written with dollar signs, such as $A$1, that stays fixed when a spreadsheet formula is copied to other cells.
- Core banking system
- Centralised software that posts transactions to customer accounts in real time across all branches, providing teller, lending and reporting modules.
- Active versus passive voice
- In active voice the subject performs the action, as in the teller counted the cash. In passive voice the object becomes the subject.
- Semicolon usage
- A semicolon joins two closely related independent clauses without a conjunction, and separates items in a list that already contain commas.
- Affect versus effect
- Affect is usually a verb meaning to influence, while effect is usually a noun meaning the result. Confusing them is a common business-writing error.
- Syllogism conversion rule
- Some A are B converts to Some B are A, and No A are B converts to No B are A. All A are B does not convert to All B are A.