Internal Controls and Fraud
This is the term used to describe different people performing different parts of a process in a business.
What is a Separation of Duties?
This is the type of card a business uses if it wants to take out a short-term loan for a specific purchase.
What is a credit card (often referred to as a p-card or purchase card)?
These are the accounts used for sales on account.
What are Accounts Receivable and Service Revenue?
This is the formula for net revenues.
What is Sales - Discounts?
This method is acceptable under GAAP.
What is the Allowance Method?
This is the term used to describe two or more people working together to commit fraud.
What is Collusion?
This is the name of the account used to track money available for small purchases, such as supplies.
What is Petty Cash?
This is the name of the term to describe an offer made to customers that includes a percentage reduction in amount due if paid within a certain amount of time.
What is a Sales Discount?
This is the formula for Net Accounts Receivable.
What is Accounts Receivable - Allowance for Uncollectible Accounts?
This is the first entry required under the Allowance Method.
What is the "estimate" journal entry?
Bad Debt Expense
Allowance for Uncollectible Accounts
A procedure where a cash drawer is reconciled at the end of the day is an example of this type of control.
What is a Detective Control?
This is the number of journal entries necessary for a company to make after completing a bank reconciliation.
What is two?
This term is used to describe the reduction in price of a product for large volume customers.
What is a Trade Discount?
This is the formula for the Receivables Turnover Ratio.
What is Net Credit Sales / Average Accounts Receivable?
This is the second entry required under the Allowance Method.
What is the "write off" journal entry?
Allowance for Uncollectible Accounts
Accounts Receivable
This Act was created to improve transparency of financial statements and require managers to take responsibility for the financial statements of public companies.
What is the Sarbanes-Oxley Act?
This type of card used for purchases is treated the same as cash for journal entry purposes.
What is a Debit Card?
This is the term used to describe customers bringing a previously item back to a business for a refund.
What is a Sales Return?
This is the formula for the Average Collection Period.
What is 365 / Receivables Turnover Ratio?
This is the "estimate" journal entry required under the Direct Write-Off Method.
What is no journal entry required?
These are the three elements of the fraud triangle.
What are Pressure, Opportunity, and Rationalization?
This is the name of the document completed to determine the adjusted balances of the bank statement and company ledger.
What is a Bank Reconciliation?
This is the term used to describe a reduction in the amount a customer owes due to a deficiency or defect in the product.
What is a Sales Allowance?
This is the term used to describe a ratio that shows how many times we can collect our receivables within a year. The higher the number, the lower the Average Collection Period.
What is the Receivables Turnover Ratio?
This is the "write-off" journal entry required under the direct write-off method.
What is:
Bad Debt Expense
Accounts Receivable