Final answer:
The record of all cash payments and deposits during an accounting period is called a cash book or cash transactions journal. It is crucial for accurate financial records and is connected to the M1 money supply which includes currency in circulation and checkable deposits.
Step-by-step explanation:
The record of all the checks, cash payments, and other transactions including deposits made during an accounting period is typically called a cash book or cash transactions journal. This financial journal records all cash inflows and outflows and is a critical component of a company's double-entry bookkeeping system. Every transaction that involves cash, whether it's a payment made by the company or a payment received, gets recorded in the cash book. It's important for businesses to maintain this record to ensure accuracy in their financial statements and to have a clear view of their cash position at any time.
From the perspective of an individual or a business, managing and monitoring cash flow is essential. A checking account plays a critical role here. These are also referred to as checkable deposits or demand deposits since the owner can withdraw funds 'on demand' via checks or a debit card. This flexibility is fundamental to performing daily monetary transactions conveniently. The M1 money supply, which includes currency in circulation and checkable deposits, represents the most liquid forms of money in an economy and is closely watched by the Federal Reserve System.