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Receivables
Internal Control
Inventory
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
What is Beginning Inventory + Purchases minus Ending Inventory
What is Cost of Goods Sold?
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

What is a perpetual inventory system?

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

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
Inventory method where the latest costs of products purchased are the first costs out to cost of goods sold
What is LIFO?
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
A check for which the maker's bank account has insufficient money to pay the check
What is a NSF (nonsufficient funds) check?