Accounting 101-Chapter 6 Cash and Internal Control

An investment that is readily convertible to a known amount of cash and has original maturity to the investor of three months or less.

A detailed list, provided by the bank, of all activity for a particular account during the month.

A check written by a company but not yet presented to the bank for payment

A deposit recorded on the books but not yet reflected on the bank statement.

A form used by the accountant to reconcile or resolve any differences between the balance shown on the bank statement for a particular account with the balance shown in the accounting records.

Additions on a bank statement for such items as interest paid on the account and notes collected by the bank for the customer.

Deductions on a bank statement for items such as NSF checks and various service charges.

Money kept on hand for making minor disbursements in coin and currency rather than by writing checks.

Policies and procedures necessary to ensure the safeguarding of an entity's assets, the reliability of its accounting records, and the accomplishment of overall company objectives.

An act of Congress in 2002 intended to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

A report required by Section 404 of the Sarbanes-Oxley Act to be included in a company's annual report in which management assesses the effectiveness of the internal control structure.

The five-member body created by the Sarbanes-Oxley Act that was given the authority to set auditing standards in the United States.

A group composed of key officers of a corporation and outside members responsible for general oversight of the affairs of the entity.

A board of directors subset that acts as a direct contact between the stockholders and the independent accounting firm.

Methods and records used to accurately report an entity's transactions and to maintain accountability for its assets and liablities

Procedures concerned with efficient operation of the business and adherence to managerial policies.

Procedures concerned with safeguarding the assets or the reliability of the financial statements.

The department responsible for monitoring and evaluating the internal control system.

A form a department used to initiate a request to order merchandise

A form sent by the purchasing department to the supplier

A form sent by the seller to the buyer as evidence of a sale.

A form used by the receiving department to account for the quantity and condition of merchandise received from a supplier.

A form the accounting department uses before making payments to document the accuracy of all information about a purchase.