| A | B |
|---|
| Bank Reconciliation | Report that explains the difference between the book (company) balance of cash and the cash balance reported on the bank statement. |
| Bank Statement | Bank report on the depositor's beginning and ending cash balances, and a listing of its changes, for a period. |
| Canceled Checks | Checks that the bank has paid and deducted from the depositor's account. |
| Cash | Includes currency, coins, and amounts on deposit in bank checking or savings accounts. |
| Cash Equivalents | Short-term, investment assets that are readily convertible to a known cash amount or sufficiently close to their maturity date (usually within 90 days) so that market value is not sensitive to interest rate changes. |
| Cash Over and Short | Income statement account used to record cash overages and cash shortages arising from errors in cash receipts or payments. |
| Check | Document signed by the depositor instructing the bank to pay a specified amount to a designated recipient. |
| Check Register | Another name for a cash disbursements journal when the journal has a column for check numbers. |
| Days' Sales Uncollected | Measure of the liquidity of receivables computed by dividing the current balance of receivables by the annual credit (or net) sales and then multiplying by 365; also called days' sales in receivables. |
| Deposits in Transit | Deposits recorded by the company but not yet by its bank. |
| Deposit Ticket | Lists items such as currency, coins, and checks deposited and their corresponding dollar amounts. |
| Discounts Lost | Expenses resulting from failures to take advantage of cash discounts on purchases. |
| Electronic Funds Transfer (EFT) | Use of electronic communication to transfer cash from one party to another. |
| Gross Method | Method of recording purchases at the full invoice price without deducting any cash discounts. |
| Internal Control System | All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. |
| Invoice | Itemized record of goods prepared by the vendor that lists the customer's name, items sold, sales prices, and terms of sale. |
| Invoice Approval | Document containing a checklist of steps necessary for approving an invoice for recording and payment; also called check authorization. |
| Liquid Assets | Resources such as cash that are easily converted into other assets or used to pay for goods, services, or liabilities. |
| Liquidity | Availability of resources to meet short-term cash requirements. |
| Net Method | Method of recording purchases at the full invoice price less any cash discounts. |
| Outstanding Checks | Checks written and recorded by the depositor but not yet paid by the bank at the bank statement date. |
| Petty Cash | Small amount of cash in a fund to pay minor expenses. |
| Principles of Internal Control | Principles requiring management to establish responsibility, maintain records, insure assets, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, and perform reviews. |
| Purchase Order | Document used by the purchasing department to place an order with a seller (vendor). |
| Purchase Requisition | Document listing merchandise needed by a department and requesting it be purchased. |
| Receiving Report | Form used to report that ordered goods are received and to describe their quantity and condition. |
| Signature Card | Includes the signatures of each person authorized to sign checks on the bank account. |
| Vendee | Buyer or purchaser of goods or services. |
| Vendor | Seller of goods or services. |
| Voucher | Internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded. |
| Voucher System | Procedures and approvals designed to control cash disbursements and acceptance of obligations. |
