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13 Cards in this Set
- Front
- Back
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A law passed by Congress in response to the financial frauds and scandals of the early 2000s.
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Sarbanes-Oxley Act of 2002
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Provides assurance that assets are safeguarded, business information is accurate, and employees comply with laws.
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Internal Control
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The control environment, risk assessment, control activities, information and communication, and monitoring.
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Elements of internal control
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An intentional act of deceiving an employer for personal gain.
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Employee fraud
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Coins, currency, checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.
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Cash
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A set of procedures for authorizing and recording liabilities and cash payments.
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Voucher system
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A special form of recording relevant data about a liability and the details of its payment.
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Voucher
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A system in which computers rather than paper are used to effect cash transactions.
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Electronic Funds Transfer (EFT)
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The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of cash in the ledger.
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Bank Reconciliation
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A special cash fund to pay relatively small amounts.
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Petty cash fund
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HIghly liquid investments that are usually reported with cash on the balance sheet.
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Cash equivalents
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A minimum balance that banks require companies to maintain in their bank accounts.
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Compensating balance
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A ratio that is useful for assessing how long a company can continue to operate without additional financing or without positive cash flows from operations.
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Ratio of cash to monthly cash expense
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