Receivables
Internal Control
Inventory
Acctg Info Systems
Accounting for Cash
100
Method where bad debt expense is recorded when an account receivable is uncollectible
What is the Direct Write-off Method?
100
An outside, independent accountant who evaluates the controls to help ensure financial statements are presented fairly, using GAAP
What is an External Auditor?
100
What is Beginning Inventory + Purchases minus Ending Inventory
What is Cost of Goods Sold?
100
Software and data are stored on a third party server and is accessed via the internet
What is Cloud Computing?
100
Document explaining the reasons for differences between the company's cash records and the bank statement balances
What is a bank reconciliation?
200
Contra account to Accounts Receivable
What is Allowance for Bad Debts?
200
Keeping operations and the custody of assets separate from accounting
What is Separation of Duties?
200

A perpetual inventory system tracks inventory in real time, keeping consistent record as COGS is updated every time a transaction occurs.

What is a perpetual inventory system?

200
A system of electronic linkages that allow different computers to share the same information
What is a Network?
200
A check issued by a company and recorded on its books but not yet paid by the bank
What is an outstanding check?
300
A method of accounting for collectible receivables in which the company estimates bad debt expense, matching the expense to the revenue
What is the Allowance Method?
300
A device that enables access to a network for members, but keeps nonmembers out of the network
What is a Firewall?
300
Inventory method where the latest costs of products purchased are the first costs out to cost of goods sold
What is LIFO?
300
A special journal used to record cash payments by check and currency
What is the Cash Payments Journal?
300
A fund containing a small amount of cash that is used to pay for minor expenditures
What is Petty Cash?
400
The amount loaned by the payee and borrowed by the maker of a note
What is Principal?
400
Law that requires companies to review internal control and take responsibility for th accuracy and completeness of their financial reports
What is SOX? (Sarbanes-Oxley Act)
400
Rule that inventory should be reported in the financials at whichever is lower - historical cost or market value
What is the Lower of Cost or Market (LCM) rule?
400
Software systems that can integrate all of a company's functions, departments and data into a single system
What is an ERP (enterprise resource planning) system?
400
A check for which the maker's bank account has insufficient money to pay the check
What is a NSF (nonsufficient funds) check?
500
The sum of the principal of a note and interest due at maturity
What is Maturity Value?
500
Rearranging plain-text messages by a mathematical process
What is Encryption?
500
When the buyer takes ownership of the goods once the goods leave the seller's place of business
What is FOB (free on board) shipping point?
500
Purchase invoices, bank checks and sales invoices are all ...
What are Source Documents?
500
Physical or scanned copies of the maker's cashed (paid) checks
What are cancelled checks?
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