front 1 a documented approach to protecting an organization’s assets | back 1 internal control |
front 2 a law passed to help protect investors from fraudulent financial reporting by corporations | back 2 Sarbanes-Oxley Act |
front 3 Based on the Sarbanes-Oxley Act, Section 404, where should companies report information about the independent audit and internal controls? | back 3 annual report |
front 4 seller of goods and services | back 4 vendor |
front 5 Verification, as it relates to internal controls, must occur _____. | back 5 periodically and randomly |
front 6 The Sarbanes-Oxley Act, Section 404 requires ______ companies to obtain an independent audit and report internal controls in their annual report. | back 6 publicly traded |
front 7 Proper internal control procedures require at least ____ signature(s) on company checks. | back 7 two |
front 8 an analysis between the bank statement and the company's cash transactions | back 8 bank reconciliation |
front 9 a list of monthly account transactions | back 9 bank statements |
front 10 the electronic transfer of money between bank accounts or financial institutions | back 10 electronic funds transfer |
front 11 a bank charge for not having enough money in the bank when a transaction is presented to the account | back 11 overdraft fee |
front 12 If the president of ABC Corporation was scheduled for a business trip, which form of payment would be best to use for travel? | back 12 company debit card |
front 13 a small amount of cash kept on hand to pay for small, non-recurring purchases | back 13 petty cash |
front 14 a loan that requires fixed payments and has an interest rate | back 14 installment credit |
front 15 credit that is automatically renewed as debts are paid | back 15 revolving credit |
front 16 to turn assets into cash (liquid) | back 16 liquidate |
front 17 90 days same as cash is an example of _____. (a loan that, if repaid by a set date, has no interest) | back 17 non-installment credit |
front 18 the cost of transporting goods | back 18 freight |
front 19 a bill given by a vendor to the purchasing entity | back 19 invoice |
front 20 a written document of the items to purchase and their prices | back 20 purchase order |
front 21 a request to make a purchase | back 21 purchasing requisition |
front 22 discounts and payment due dates | back 22 credit terms |
front 23 the acronym when the buyer pays freight costs | back 23 FOB origin |
front 24 the acronym when the seller pays freight costs | back 24 FOB delivered |
front 25 The purchase requisition _____ the purchasing process. | back 25 starts |
front 26 If a vendor offers a discount if the account is paid in full within 15 days, how would the credit terms be shown on the invoice? | back 26 4/15 |
front 27 document is sent to the vendor to purchase items | back 27 purchase order |
front 28 a schedule showing vendors owed, the dollar amount, and the length of time the debt is outstanding | back 28 accounts payable aging schedule |
front 29 a schedule showing all vendors, the dollar amount owed, and account balances | back 29 schedule of accounts payable |
front 30 Organizations should always try to ____ freight and credit terms. | back 30 negotiate |
front 31 assets > liabilities | back 31 liquidity |
front 32 Accounts payable are considered _____ on the balance sheet. | back 32 liabilities |