Chapter 8
NSF
What is not sufficient funds
Customer requirements, competitive threats, regulatory changes, & changes in economic factors.
What is: Risk Assessment
Step 1: Analyze user information needs
Step 2: Design the system to meet the user needs
Step 3: Implement the system
What are the steps in an Accounting System
What is Asset = Liabilities + Owner's Equity
What is the accounting equation?
The cotton candy machine was invented by a....
What is a Dentist
EFT
What is electronic funds transfer
Competent personnel, rotating duties, mandatory vacations
Separating responsibilities
Separating operations
Proofs and security measures
What are: Control Procedures
Ledger used when a large number of similar transactions take place
What is a subsidiary ledger
Primary Ledger containing all of the balance sheet and income statement accounts
What is the General Ledger?
35% of people are born without these
What are wisdom teeth.
Set of procedures for authorizing and recording liabilities
What is a voucher system
$3.5 trillion per year
What is: Revenue lost to employee fraud
Two most common types of subsidiary ledgers
What is A/R and A/P
When you buy something and agree to pay for it later
What is Credit?
Tallest building in the US and city
What is Willis Tower - Chicago
Cost of internal controls should not exceed their benefit
What is Cost Benefit
Procedures and processes used by a company to:
Safeguard Assets
Process information accurately
Ensure compliance with laws and regulations
What are Internal Controls
Revenue Journal, cash receipts journal, purchases journal, cash payments journal
What are special journals
Property or items of value owned by a business
What is assets?
Tallest mountain in the US and where
What is Denali - Alaska
Control Environment, Risk Assessment, Control Procedures, Monitoring, Information & Communication
What are the 5 Elements of Internal Control
Purpose is to foster public confidence and trust in financial reporting of publicly traded companies.
What is: Sarbanes Oxley Act
B2B & B2C
What is Business to Business and Business to Consumer
Is a list of all accounts used by a business.
What is chart of accounts?
Number of hotdogs consumed each year in the US
What is 20 billion