Introduction to Financial Accounting Exam 3 with || || || || || || ||
accurate detailed solutions || ||
bad debt - ✔✔an account receivable that is unable to be collected; an uncollectable account
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purchase order - ✔✔a document showing details of merchandise being ordered from a supplier
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receiving report - ✔✔a document evidencing the receipt of goods purchased
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purchasing order - ✔✔individual in an organization responsible for placing orders to purchase
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goods for that organization
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controller - ✔✔individual in an organization responsible for the accounting system and financial
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statements
treasure - ✔✔the individual in an organization responsible for the custody of assets, such as cash
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electronic data interchange (EDI) - ✔✔direct electronic communication between suppliers and
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retailers
electronic funds transfer (EFT) - ✔✔system that transfers cash by electronic communication
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rather than by by paper documents
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bank reconciliation - ✔✔a document that identifies and explains the differences between a
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depositor's record of a cash account and a bank's record of the same cash amount
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bank statement - ✔✔a document the bank prepares to report the changes in the depositor's cash
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account for a period of time; begins with beginning bank account balance, ists the month's cash
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transactions, and shows the ending bank account balance || || || || || || ||
, bank balance - ✔✔the balance in the company's bank account according to the bank
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book balance - ✔✔balance in a company's bank account according to the company's accounting
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records or books || ||
deposits in transit - ✔✔deposits that have been recorded by a company but not yet by its bank
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outstanding checks - ✔✔checks that have been issued by a company and recorded in its books but
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have not yet been paid by its bank
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bank collection - ✔✔collection of money by the bank on behalf of a depositor
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lock-box system - ✔✔a system in which customers send payments to a post office box of a
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business; bank collects these and deposits them into the company's account
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non-sufficient funds check - ✔✔a check drawn against a bank account that has insufficient || || || || || || || || || || || || || ||
money to pay the check || || || ||
petty cash - ✔✔fund containing a small amount of cash that is used to pay for minor expenditures
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cash equivalent - ✔✔highly liquid, highly safe investments that so closely resemble cash that
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they may be shown as cash on the balance sheet
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write off - ✔✔removing a customer's receivable from the accounting records because it is
|| || || || || || || || || || || || || ||
considered uncollectable ||
bad debt expense - ✔✔selling expenses caused by uncollectable accounts; uncollectable accounts
|| || || || || || || || || || || ||
expense
accurate detailed solutions || ||
bad debt - ✔✔an account receivable that is unable to be collected; an uncollectable account
|| || || || || || || || || || || || || ||
purchase order - ✔✔a document showing details of merchandise being ordered from a supplier
|| || || || || || || || || || || || ||
receiving report - ✔✔a document evidencing the receipt of goods purchased
|| || || || || || || || || ||
purchasing order - ✔✔individual in an organization responsible for placing orders to purchase
|| || || || || || || || || || || || ||
goods for that organization
|| || ||
controller - ✔✔individual in an organization responsible for the accounting system and financial
|| || || || || || || || || || || || ||
statements
treasure - ✔✔the individual in an organization responsible for the custody of assets, such as cash
|| || || || || || || || || || || || || || ||
electronic data interchange (EDI) - ✔✔direct electronic communication between suppliers and
|| || || || || || || || || || ||
retailers
electronic funds transfer (EFT) - ✔✔system that transfers cash by electronic communication
|| || || || || || || || || || || ||
rather than by by paper documents
|| || || || ||
bank reconciliation - ✔✔a document that identifies and explains the differences between a
|| || || || || || || || || || || || ||
depositor's record of a cash account and a bank's record of the same cash amount
|| || || || || || || || || || || || || ||
bank statement - ✔✔a document the bank prepares to report the changes in the depositor's cash
|| || || || || || || || || || || || || || || ||
account for a period of time; begins with beginning bank account balance, ists the month's cash
|| || || || || || || || || || || || || || || ||
transactions, and shows the ending bank account balance || || || || || || ||
, bank balance - ✔✔the balance in the company's bank account according to the bank
|| || || || || || || || || || || || ||
book balance - ✔✔balance in a company's bank account according to the company's accounting
|| || || || || || || || || || || || || ||
records or books || ||
deposits in transit - ✔✔deposits that have been recorded by a company but not yet by its bank
|| || || || || || || || || || || || || || || || ||
outstanding checks - ✔✔checks that have been issued by a company and recorded in its books but
|| || || || || || || || || || || || || || || ||
have not yet been paid by its bank
|| || || || || || || ||
bank collection - ✔✔collection of money by the bank on behalf of a depositor
|| || || || || || || || || || || || ||
lock-box system - ✔✔a system in which customers send payments to a post office box of a
|| || || || || || || || || || || || || || || || ||
business; bank collects these and deposits them into the company's account
|| || || || || || || || || ||
non-sufficient funds check - ✔✔a check drawn against a bank account that has insufficient || || || || || || || || || || || || || ||
money to pay the check || || || ||
petty cash - ✔✔fund containing a small amount of cash that is used to pay for minor expenditures
|| || || || || || || || || || || || || || || || ||
cash equivalent - ✔✔highly liquid, highly safe investments that so closely resemble cash that
|| || || || || || || || || || || || || ||
they may be shown as cash on the balance sheet
|| || || || || || || || ||
write off - ✔✔removing a customer's receivable from the accounting records because it is
|| || || || || || || || || || || || || ||
considered uncollectable ||
bad debt expense - ✔✔selling expenses caused by uncollectable accounts; uncollectable accounts
|| || || || || || || || || || || ||
expense
