Acct 229: Chapter 6 Vocab.

Front 1

Cash Equivalent

Back 1

An investment that is readily convertible to a known amount of cash and has an original maturity to the investor of three months or less.

Front 2

Bank Statement

Back 2

A detailed list, provided by the bank, of all activity for a particular account during the month.

Front 3

Outstanding Check

Back 3

A check written by a company but not yet present to the bank for payment.

Front 4

Deposit In Transit

Back 4

A deposit recorded on the books but not yet reflected on the bank statement.

Front 5

Bank Reconciliation

Back 5

A form used by the accountant to reconcile or resolve any differences between the balance shown on the bank statement for a particular account with the balance shown in the accounting records.

Front 6

Credit Memoranda

Back 6

Additions on a bank statement for such items as interest paid on the account and notes collected by the bank for the customer.

Front 7

Debit Memoranda

Back 7

Deductions on a bank statement for items such as NFS checks and various service charges.

Front 8

Petty Cash Fund

Back 8

Money kept on hand for making minor disbursements in coin and currency rather than by writing checks.

Front 9

Internal Control System

Back 9

Policies and procedures necessary to ensure the safeguarding of an entity's assets, the reliability of its accounting records, and at the accomplishment of overall company objectives.

Front 10

Sarbanes-Oxley Act

Back 10

An act of congress in 2002 intended to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

Front 11

Internal Control Report

Back 11

A report by Section 404 of the Sarbanes-Oxley Act to be included in a company's report in which management assesses the effectiveness of the internal control structure.

Front 12

Public Company Accounting Oversight Board

Back 12

The five-member body created by the Sarbanes-Oxley Act that was given the authority to et auditing standards in the United States.

Front 13

Board Of Directors

Back 13

A group composed of key officers of a corporation and outside members responsible for general oversight of the affairs of the entity.

Front 14

Audit Committee

Back 14

A board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm.

Front 15

Accounting System

Back 15

Methods and records used to accurately report an entity's transactions and to maintain accountability for its assets and liabilities.

Front 16

Administrative Controls

Back 16

Procedures concerned with efficient operation of the business and adherence to managerial policies.

Front 17

Accounting Controls

Back 17

Procedures concerned with safeguarding the assets or the reliability of the financial statements.

Front 18

Internal Audit Staff

Back 18

The department responsible for monitoring and evaluating the internal control system.

Front 19

Purchase requisition Form

Back 19

A form a department uses to initiate a request to order merchandise.

Front 20

Purchase Order

Back 20

A form sent by the purchasing department to the supplier.

Front 21

Blind Receiving Report

Back 21

A form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

Front 22

Invoice Approval Form

Back 22

A form the accounting department uses before making payment to document the accuracy of all information about a purchase.
-Also known as voucher