Show:
Merchandising Business
Cash
Receivables
Inventory
Internal Control
100
A reduction in invoice price offered to customers to encourage prompt payment of invoices
What is sales discount?
100
A control procedure to establish and verify the correct cash balance via identification of errors, irregularities, and adjustments
What is bank reconciliation?
100
Analysis used to estimate the uncollectible accounts
What is aging of accounts receivable?
100
An inventory cost flow assumption based on the notion that the earliest costs are to be assigned to units sold
What is first in-first out (FIFO)?
100
Requires all publicly traded U.S. corporations to maintain an adequate system of internal controls
What is Sarbanes-Oxley Act of 2002 (SOX)?
200
Transferring ownership of inventory will occur when the goods are shipped and the purchaser will incur the freight charges
What is FOB Shipping Point?
200
A fund established for making small payments that are impractical to pay by check
What is petty cash?
200
The charge imposed on the borrower of funds for the use of money
What is interest?
200
An inventory cost flow assumption based on the notion that the most recent costs are to be assigned to units sold
What is last in-last out (LIFO)?
200
Responsibilities for related activities should be assigned to different individuals
What is segregation (separation) of duties?
300
A complex income statement with sections that segregate cost of goods sold calculations and other components of income and expense
What is multiple-step income statement?
300
A customer check returned for lack of funds
What is Nonsufficient funds (NSF) check?
300
A written promise from a client or customer to pay a definite amount of money on a specific future date
What is notes receivable?
300
Inventory costing method where the actual cost of each unit of merchandise is tracked
What is specific identification method?
300
Employees who evaluate on a continuous basis the effectiveness of the company’s system of internal control.
Who are internal auditors?
400
The total cost attributed to units of inventory actually sold during a period
What is cost of goods sold?
400
Checks entered on company records but not yet cleared by the bank
What are outstanding checks?
400
A method that estimates uncollectibles and establishes an offsetting contra account
What is allowance method for uncollectibles?
400
A period covered by a salary payment.
What is a pay period?
400
The asset most susceptible to improper diversion and use.
What is cash?
500
Inventory is updated by physical count at the end of accounting periods
What is periodic inventory system?
500
Receipts entered on company records but not yet posted by the bank
What are deposits in transit?
500
Accounts receivable minus the allowance for uncollectibles
What is net realizable value (or net receivables)?
500
inventory cost is based on the average cost of units purchased
What is weighted-average inventory method?
500
To protect from employee theft, robbery, and unauthorized use.
What is safeguard assets ?