Cash Management
This term refers to how available cash is
What is Cash liquidity?
This principle ensures different individuals or departments handle cash related record keeping
What is the segregation of duties?
This document is prepared by the bank and sent to the account holder periodically
What is the bank statement?
The triangle triad that causes fraud.
What is motivation, rationalization, and opportunity?
This accounting principle was manipulated by Enron to hide debt and inflate profits (think Unit 1)
What is revenue recognition principle?
A cash management tool that enables people to send cash electronically
What is electronic fund transfer (E-transfer)
This document is used to authorize a purchase of goods/service?
What is a receipt/invoice?
The Book Balance on the Reconciliation statements.
What is the total of cash account balance of business/account holder?
This accounts for negligence, fatigue, misjudgment and confusion.
What is human error?
The person who informs upper management or external authorities when corporate fraud occurs.
What is a whistleblower?
A technique that involves monitoring and projecting cash flow
What is cash budgeting?
The type of control ensures that there is a paper trail to follow a payment made indirectly
What are cheques/disbursements?
This term refers to the cheques that have been issued but have not been deposited into the bank
What are outstanding cheques?
Something Upper Management can do to prevent fraudulent activities among employees.
What is role model ethical and moral behaviour with their duties (+ acceptable responses)
The financial statement that Enron rejected to share with the public
What is a balance sheet?
This account allows individuals/business owners to earn interest on extra cash
What is high interest savings account?
This internal control involves counting physical merchandise for sale at end of each period
What is Periodic Inventory Check/Count?
This term describes the difference between the bank statement balance and the book balance
What is the reconciling item/error?
What is it to live with integrity?
The way Enron was capable of providing its employees (mainly upper management) with insane bonuses and salaries.
What is profit inflation and projection?
All documents and related disbursements/receipts specific to one clientele is kept in this tangible file
What is a voucher?
This principle involves comparing financial statements with other source documents to ensure consistency.
What is reconciling?
The reason why money in your balance is 'credited'
What does it mean for the bank to "owe" you money?
If upper management take home the overages in cash balances, it is ok if I do the same when my opportunity comes around. This is an example of:
What is rationalization?
Who are the internal, lower level employees who cashed in personal savings to purchase Enron stock after being misled by upper management about company performance?