Study Accounting Chapter 7 Flash Cards

 
Pile Management Card
Accounting Chapter 7

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A disbursement system that users wire, telephone, or computer to transfer cash from one location to another.
Electronic Funds Transfer (EFT)
A network of approvals by authorized individuals acting independently to ensure that all disbursements by check are proper.
Voucher System
An authorization form prepared for each expenditure in a voucher system.
Voucher
Employee responsible for the management of a company's cash.
Treasurer
Law that requires companies to maintain adequate systems of internal control.
Sarbanes-Oxley Act of 2002 (SOX)
Cash that is not available for general use, but instead is restricted for a particular purpose.
Restricted Cash
A cash fund used to pay relatively small amounts.
Petty Cash Fund
Checks issued and recorded by a company that have not been paid by the bank.
Outstanding Checks
A check that is not paid by a bank because of insufficient funds in a bank account.
NSF Check
All the related mathods and measures adopted within an organization to safeguard its assets and enhance the reliability of its accounting records, increase efficiency of operation, and ensure compliance with laws and regulations.
Internal Control
Company employees who continuously evaluate the effectiveness of the company's internal control system.
Internal Auditors
The three factors that contribute to fraudulent activity by employees: opportunity, financial pressure, and rationalization.
Fraud Triangle
A dishonest act by an employee that results in personal benefit to the employee at a cost to the employer.
Fraud
Deposits recorded by the depositor that have not been recorded by the bank.
Deposits in transit
Short-term, highly liquid investments that can be converted to a specific amount of cash.
Cash Equivalents
A projection of anticipated cash flows, usually over a one- to two- year period.
Cash Budget
Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository.
Cash
Obtaining insurance protection against theft by employees.
Bonding
A statement received monthly from the bank that shows the depositor's bank transactions and balances.
Bank Statement
The process of comparing the bank's account balance with the company's balance, and explaining the differences to make them agree.
Bank Reconciliation
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