ACCT 101 Ch. 4
Terms
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- outstanding check
- a check issued by the company and recorded on its books but not yet paid by its bank; subtract from bank balance in reconciliation
- audit
- a periodic examination of a company's financial statements and the accounting systems, controls, and records that produce them
- bank statement
- document showing the begining and ending balances of a particular bank account listing the month's transactions that affected the account
- cash budget
- statement that helps a company or an individual manage cash by plannning receitps and payments during a future period
- bank collection
- collection of money by the bank on behalf of a depositor
- receiving report
- a list of merchandise recieved created by the receiving department
- Nonsufficient funds check
- a hot check, one for which the payer's bank account has insufficient money to pay the check; cash receipts that turn out to be worthless
- requisition
- purchase request, first step in purchasing process, sent to supplier
- payment packet
- includes receiving report, invoice, purchase order that controller and treausrer should examine to ensure all doc agree so company knows that it received the goods ordered and it pays only for goods received
- firewall
- limits access to hardware, software, or data to persons within a network
- check
- document instructing a bank to pay the designated person/business the specified amoutn of money
- bank reconciliation
- a document explaining the reasons for the difference between a depositor's records and the bank's records about the depositor's cash
- encryption
- the transformation of data by a mathamatical process into a form that is unreadable by those without the secret decryption key
- petty cash
- funding containing a small amount of cash that is used to pay minor amounts
- budget
- a quantitative expression of a plan that helps managers coordinate the entity's activities
- electronic fund transfer
- system that transfers cash by electronic communication rather than by paper documents
- internal control
- organizational plan and related measures adopted by an entity to safeguard assets, encourage adherence to company policies, promote operational efficiency, and ensure accurate and reliable accoutning records
- separation of duties
- method to limit the chances for fraud and promotes the accuracy of accounting records - division of responsibilities for transactions between 2 or more people
- invoice
- the bill that the supplier sends to the company to indicate the need to pay
- deposit in transit
- a deposit recorded by the company but not yet by its bank - add to bank balance
- imprest system
- a way to account for petty cash by maintaining a constant balance in the petty cash account, supported by the fund (cash plus payment tickets) totaling the same amount
- controller
- the chief accounting officer of a business