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Definition
| The process of comparing the bank's account balance with the company's balance, and explaining the differences to make them agree. |
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| A statement received monthly from the bank that shows the depositor's bank transactions and balances. |
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| Obtaining insurance protection against theft by employees. |
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Definition
| Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository. |
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| A projection of anticipated cash flows, usually over a one- to two-year period. |
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| Short-term, highly liquid investments that can be readily converted to a specific amount of cash and which are relatively insensitive to interest rate changes. |
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| Deposits recorded by the depositor that have not been recorded by the bank. |
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| Electronic funds transfer (EFT) |
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Definition
| A disbursement system that uses wire, telephone, or computer to transfer cash from one location to another. |
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| A dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. |
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| The three factors that contribute to fraudulent activity by employees: opportunity, financial pressure, and rationalization. |
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| Company employees who continuously evaluate the effectiveness of the company's internal control systems. |
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| All the related methods and measures adopted within an organization to safeguard assets and enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. |
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| A check that is not paid by a bank because of insufficient funds in a bank account. |
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| Checks issued and recorded by a company that have not been paid by the bank. |
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Term
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Definition
| A cash fund used to pay relatively small amounts. |
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| Cash that is not available for general use but instead is restricted for a particular purpose. |
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Term
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Definition
| Law that requires publicly traded companies to maintain adequate systems of internal control. |
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Definition
| Employee responsible for the management of a company's cash. |
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Definition
| An authorization form prepared for each expenditure in a voucher system. |
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Definition
| A network of approvals by authorized individuals, acting independently, to ensure that all disbursements by check are proper. |
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