Term
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Definition
| The excess of its current assets over its current liabilities. That is, working capital is current assets minus current liabilities. |
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Term
| Internal Control Structure |
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Definition
| A set of policies and procedures that directs how employees should perform a company's activities. |
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Term
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Definition
| Includes money on hand, deposits in checking and savings accounts, and checks and credit card invoices that it has received from customers but not yet deposited. |
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Term
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Definition
| Summarizes the company's banking activities (e.g., deposits, paid checks) during the month. |
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Term
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Definition
| Used to analyze the difference between the ending cash balance in its accounting records and the ending cash balance reported by the bank in the bank statement. |
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Term
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Definition
| A cash receipt that the company has added to its Cash account but that the bank has not included in the cash balance reproted on the bank statement. |
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Term
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Definition
| A check that the company has written and deducted from its Cash account but that the bank has not deducted from the cash balance reported on the bank statement because the check has not yet "cleared" the bank. |
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Term
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Definition
| Not Sufficient Funds = this is what a coustomers check is called if it bounces. |
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Term
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Definition
| A specified amount of money that is under the control of one employee and that is used for making small cash payments for the company. |
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Term
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Definition
| The amounts owed to a company by customers from previous credit sales. |
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Term
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Definition
| The merchandise being held for resale. |
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Term
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Definition
| A document authorizing a supplier to ship the items listed on the document at a specific price. |
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Term
| Specific Identification Method |
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Definition
| Allocates costs to cost of goods sold and to ending inventory by assigning to each unit sold and to each unit ending in ending inventory the cost the company of purchasing that particular unit. |
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Term
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Definition
| The amounts that a company owes to its suppliers for previous credit purchases of inventory and supplies. |
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