Ch 5 & 6 Vocab
- Bowling Green State University
- Accounting 2000
- Pascal Bizarro
- Ch 5 & 6 Vocab
Last Modified: 2012-03-19
The analysis that details the items responsible for thedifference between the cash balance reported in the bank statement and the cashbalance in the ledger.
A summary of all transactions mailed to the depositor by the bank each month.
Coins, currency (paper money), checks, money orders, andmoney on deposit available for unrestricted withdrawal from banks and otherfinancial institutions.
Highly liquid investments that are usually reported with cash on the balance sheet.
The account used to record the difference between the amountof cash in a cash register and the amount of cash that should be on handaccording to the records.
A requirement by some banks that depositors maintain minimumcash balances in their bank accounts.
The intentional act of deceiving an employer for personalgain.
An act passed by Congress to restore public confidence andtrust in the financial statements of companies.
Any document that serves as proof of authority to pay cash.
Receivables created by selling merchandise or services oncredit.
The method of accounting for uncollectible accounts thatprovides an expense for uncollectible receivables in advance of theirwrite-off.
The operating expense incurred because of the failure to collectreceivables.
The cost of finished products on hand that have not beensold.
A method of inventory costing based on the assumption thatthe most recent merchandise inventory costs should be charged against revenue.
A required disclosure for LIFO firms, showing the differencebetween inventory valued under FIFO and inventory valued under LIFO.
The cost of materials that have not yet entered into themanufacturing process.
For a receivable, the amount of cash expected to be realizedin the future. For inventory, the estimated selling price of an item ofinventory less any direct costs of disposal, such as sales commissions.
All money claims against other entities, including people,business firms, and other organizations.
The direct materials costs, the direct labor costs, and thefactory overhead costs that have entered into the manufacturing process but areassociated with products that have not been finished.
The purpose of the Sarbanes-Oxley Act of 2002 is to:
The framework that has become widely accepted as the standard by which companies design, analyze, and evaluate internal controls is the:
Internal control does NOT consist of policies and procedures that:
Internal controls are important because they:
An element of internal control is
Management's philosophy and operating style would affect which of the following elements of internal control?
An element of internal control is
Requiring employees to take annual vacations is part of which element of internal control?
Which of the following elements of internal control focuses upon locating weaknesses and improving control effectiveness?
Employing internal auditors is part of which element of internal control?
On the bank's accounting records, customers' accounts are normally shown as
A check drawn by a depositor for $295 in payment of a liability was recorded as $925. This item would be included on the bank reconciliation as a(n)
A bank reconciliation should be prepared periodically because
Accompanying the bank statement was a debit memorandum for bank service charges. What adjustment is required in the depositor's accounts?
Receipts from cash sales of $7,500 were recorded incorrectly by the depositor as $5,700. What adjustment is required in the bank’s accounts?
Accompanying the bank statement was a credit memorandum for a short-term note collected by the bank for the customer. What adjustment is required in the depositor's accounts?
What adjustment is required in the depositor's accounts to record outstanding checks?
A check drawn by a depositor for $810 in payment of a liability was recorded by the depositor as $180. This item would be included on the bank reconciliation as a(n)
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adjusting entry including a
Which of the following would be added to the balance per books on a bank reconciliation?
Which of the following should NOT be considered cash by an accountant?
A note receivable due in 90 days is listed on the balance sheet under
A written promise to pay a sum of money on demand or at a definite time is called a(n)
In reference to a promissory note, the person who is to receive payment is called the a.
A note receivable due in 18 months is listed on the balance sheet under the caption
A 90-day, 10% note for $10,000 dated April 1 is received from a customer on account. The face value of the note is
A 60-day, 12% note for $15,000 dated May 1 is received from a customer on account. The maturity value of the note is
The process of a company selling its accounts receivable to another company is referred to as
One of the weaknesses of the direct write-off method is that it
After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $500,000 and Allowance for Doubtful Accounts has a (negative) balance of $25,000. What is the net realizable value of the accounts receivable?
Increase Uncollectible Accounts Expense, $14,200; increase Allowance for Doubtful Accounts, $14,200
Allowance for Doubtful Accounts has an unadjusted balance of $800 at the end of the year, and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following records the proper provision for doubtful accounts?
Allowance for Doubtful Accounts has an unadjusted balance of $500 at the end of the year, and uncollectible accounts expense is estimated at 1% of net sales. If net sales are $950,000, the amount of the adjustment to record the provision for doubtful accounts is
The presentation of net accounts receivable on the balance sheet will be most accurate under the
The inventory method that considers the inventory to be composed of the units of merchandise acquired earliest is called
Inventory costing methods place primary emphasis on assumptions about
Under which method of cost flows is the inventory assumed to be composed of the most recent costs?
The inventory method that assigns the most recent costs to cost of good sold is
If merchandise inventory is being valued at cost and the price level is steadily rising, the method of costing that will yield the highest net income is:
If merchandise inventory is being valued at cost and the purchase price is steadily falling, which method of costing will yield the largest gross profit?
If the cost of an item of inventory is $70, the current replacement cost is $65, and the sales price is $85, the amount included in inventory according to the lower of cost or market is
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