Term
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Definition
| The accounting scandals in the early 2000s lead to this. It set forth a variety of new guidelines related to auditing and internal controls. |
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Term
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Definition
| Short term investments that have a maturity date no longer than 3 months |
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Term
Cash 1940
Service Fee Expense 60
Service Revenue 2000 |
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Definition
| Suppose a movie theatre accepts MasterCard as payfor for 2000 worth of movie tickets, and they charge a service fee of 3%. RECORD THE TRANSACTION |
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Term
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Definition
| Matches the balance of cash in the bank account with the balance of cash in the companys own records. |
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Term
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Definition
| Cash receipts of the company that have NOT been added to the bank's record |
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Term
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Definition
| Checks the company has written that have not been subtracted from the bank's record |
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Term
| NSF checks should be subtracted from the company's balance. |
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Definition
| NSF checks should be subtracted from the bank or company's balance? |
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Term
| EFT's should be subtracted from cash balance |
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Definition
| EFT for advertising should be added or subtracted from the Company's Cash Balance? |
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Term
CASH
(Then credit things that increased cash: Notes Receivable, Interest Revenue)
(Debit things that decresed cash: Accts rec., Ad Expense, SF Expense)
CASH |
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Definition
| Record the adjustment to update the Cash account after we found the changes in the bank reconciliation. |
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Term
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Definition
| Record the transaction to replenish the petty cash fund. |
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Term
Postage Expense
Delivery Expense
Supplies
Petty Cash |
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Definition
| Record the transaction for the adjusted amounts for the petty cash fund. |
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Term
Statement of Cash Flows
(MAKE SURE THE TRANSACTION INVOLVES CASH: Ex. Purchase equipment with a note payable. DOES NOT INVOLVE CASH) |
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Definition
| Records all cash activities throughout a period, including inflows, and outflows. |
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Term
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Definition
| A company's plans to 1) safeguard the company's assets and 2) improve the accuracy and reliability of accounting info |
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Term
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Definition
| OPERATING cash flows plus INVESTING cash flows during the period |
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Term
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Definition
| Procedures for maintaining separation of duties |
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Term
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Definition
| Establishes standards related to the preparation of audited financial reports |
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Term
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Definition
| Formal policies to evaluate internal/external threats to achieving company objectives |
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Term
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Definition
| Audit firm cannont provide a variety of other services to its client, such as consulting |
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Term
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Definition
| Management must document the effectiveness of procedures that could affect financial reporting |
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Term
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Definition
| Lead audit partners are required to change every five years |
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Term
| Information and communication |
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Definition
| Transfer of data from lower managers to top executives for accurate financial reporting |
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Term
| Corporate executive accountability |
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Definition
| Executives must personally certify the financial statements |
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Term
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Definition
| Overall attitude of the company with respect to internal controls |
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Term
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Definition
| Routine activities that are meant to continually observe internal control activities |
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Term
Currency
Coins
Balances in checking accounts
Check and money orders
Cash equivalents |
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Definition
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Term
Money market funds
Treasury bills
Certificates of deposit |
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Definition
Cash equivalents equal:
M
T
C |
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Term
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Definition
| The use of similar accounting procedures either over time for the same company, or across companies at the same point in time |
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Term
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Definition
| The impact of financial accounting info on investors' and creditors' decisions |
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Term
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Definition
| There is more potential harm to users of financial statements if estimated gains turn out to be wrong than if estimated losses turn out to be wrong |
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