Accounts Payable
A method to ensure accounts payable entries are properly recorded.
What is schedule of accounts payable?
a subsidiary ledger for specific inventory
What is stock record?
a record which contains details of an employee's payroll during a calendar year
What is an employee earnings record?
former auditing company involved in the Enron scandal
What is Arthur Andersen?
moral code by which individuals live and conduct business
What is Ethics?
A document which authorizes a buyer to receive goods/ services from a seller
What is a purchase order?
credited when production labor costs are recorded
What is wages expense?
a tax form which helps the employer determine the correct amount of tax to withhold from paychecks
What is a W-4?
former company found to be keeping large debts off of balance sheets resulting in shareholders losing $74 billion, as well as employees and investors losing their retirement accounts and jobs
What is Enron?
ensures information is available only to those authorized to have access
What is confidentiality?
used to indicate the goods listed on a purchase order were actually received
an inventory method which requires a business to identify each good with the good’s cost of goods sold
What is specific identification?
a regular, fixed amount paid to an employee for work performed
What is a salary?
helps develop GAAP for review by other bodies
What is the Financial Accounting Standards Board (FASB)?
spending of company money to purchase goods for individual use
What is embezzlement?
a purchase order is sent to the vendor
What is the first step in the process of ordering from a vendor?
A company only updates their inventory at the end of the year and associates the oldest costs first with the cost of goods sold
What is Periodic FIFO?
payments correlated with hours worked by an employee
What are wages?
former cable television company that had CEOs who committed illegal accounting actions such as concealing self-dealing to their family
What is Adelphia Communications?
occurs when an accountant signs a client's name
What is forgery?
Companies have separate accounts for each vendor owed money
What is true about the accounts payable subsidiary ledger?
requires the amounts recorded in the accounts and on the financial statements to be the actual cost of an item rather than the current value of the item
What is the Cost Principle?
NOT a tax paid by both the employee and employer
What is state unemployment tax?
former company that had money siphoned through unapproved loans and fraudulent stock sales as well as smuggled out of the company disguised as executive bonuses and benefits
What is Tyco?
insider trading, forgery, and insurance fraud are all examples of
What are ethical financial issues?