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14 Cards in this Set

  • Front
  • Back
internal control structure
a set of policies and procedures that directs how employees should perform a company's activities
money on hand, deposits in checking and savings accts, and checks and credit card invoices that it has received from customers buy not yet deposited
working capital
current assets minus current liabilities
bank statement
summarizes the company's banking activities (e.g., deposits, paid checks)during the month
bank reconciliation
analyze the difference between the ending cash balance in its accounting records and the ending cash balance reported by the bank in the bank stmt.
deposits in transit
a cash receipt that the company has added to its Cash acct but that the bank has not included in the cash balance reported on the bank stmt.
outstanding check
a check that the company has written and deducted from its Cash acct but that the bank has not deducted from the cash balance reported on the bank stmt because the check has not yet cleared the bank
NSF check
a customer's check that has "bounced"
petty cash fund
a specified amount of money that is under the control of one employee and that is used for making small cash payments for the company.
accts receivable
amounts owed to a company by customers from previous credit sales
the merchandise being held for resale
purchase order
a document authorizing a supplier to ship the items listed on the document at a specific price.
specific identification method
allocates costs to costs of goods sold and ending inventory by assigning to each unit sold and to each unit in ending inventory the cost to the company of purchasing that particular unit.
accts payable
amts that a company owes to its suppliers for previous credit purchases of inventory and supplies