76 Multiple choice questions
devoted to improving the quality of financial reporting through
effective internal controls, consisting of five interrelated components
along with other mechanisms
prescribing 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.
- Record of an employee's net pay, gross pay, deductions and year-to-date payroll information.
- Resources such as cash that are easily converted into other assets or used to pay for goods, services, or liabilities.
- Method of recording purchases at the full invoice price without deducting any cash discounts.
- Income statement account used to record cash overages and cash shortages arising from errors in cash receipts or payments.
file used to store documents information to control cash disbursements
and to ensure that a transaction is properly authorized and recorded.
report by an employer to each employee showing the employee's wages
subject to FICA and federal income taxes along with amounts withheld.
- Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
- Entity who signs a note and promises to pay it at maturity.
promise to pay a specified amount either on demand or at a definite
future date. It's a note receivable for the lender, but a note payable
for the lendee.
- Checks that the bank has paid and deducted from the depositor's account.
- Availability of resources to meet short term cash requirements.
that, # 1 estimates and matches bad debts expense with its sales for
the period, and/or, # 2 reports accounts receivable at estimated
of income before interest expense (and any income taxes) divided by
interest expense. Reflects risk of covering interest commitments when
compensation paid on-behalf of employees, such as premiums for medical,
dental, life, and disability insurance, and contributions to pension
- Amounts withheld from an employees' gross pay.
- Obligations of a company with little uncertainty. Set by agreements, contracts, or laws.
- State payroll taxes on employers to support its unemployment programs.
- Process of classifying accounts receivable by how long they are past due fore purposes of estimating uncollectible accounts.
- Expected proceeds from converting an asset into cash.
- Form used to report that ordered goods are received, and used to describe their quantity and condition.
- Document listing merchandise needed by a department and requesting it be purchased. R
- Bank report on the depositor's beginning and ending cash balances, and a listing of its changes, for a period.
that company management document and assess the effectiveness of all
internal control processes that can affect financial reporting. Company
auditors express an opinion on whether management's assessment of the
effectiveness of internal controls is fairly stated.
- Obligations due to be paid or settled within one year or the company's operating cycle, whichever is longer.
- Amounts due from customers for credit sales. Backed by the customer's general credit.
- Charge for using money (or other assets) loaned from one entity to another.
- Includes the signatures of each person authorized to sign checks on the bank account.
- Procedures and approvals designed to control cash disbursements and acceptance of obligations.
- Date when a note's principal and interest are due.
- IRS form filed to report F.I.C.A. taxes owed and remained.
that records the loss from an uncollectible accounts receivable at the
time it is determined to be uncollectible. No attempt is made to
estimate bad debts.
- Record for a pay period that shows: the pay period dates, regular and overtime hours worked, gross pay, net pay, and deductions.
- Bank authorized to accept deposits of amounts payable to the federal government.
- Portion of long-term debt due within one year or the operating cycle, whichever is longer. Reported under current Liabilities.
containing a checklist of step's necessary for approving the recording
and payment of an invoice. Also called check authorization.
- Rating assigned to an employer by a state based on the employer's record of employment.
- Checks written and recorded by the depositor but not yet paid by the bank at the bank statement date.
- Amount that the signer of a note agrees to pay back when it matures not including interest.
- Deposits recorded by the company but not yet recorded by its bank.
- Gross pay less all deductions. Also called Take-home pay.
- Itemized record of goods prepared by the vendor that lists the customer's name, items sold, sales prices, and terms of sale.
- Obligation of an uncertain amount that can be reasonably gauged.
- Obligations not due to be paid within one year or the operating cycle, whichever is longer.
- Another name for cash disbursements journal when the journal has a column for check numbers.
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.
- Lists items such as currency, coins, and checks deposited and their corresponding dollar amounts.
- Payroll taxes on employers assessed by the federal government to support it's unemployment insurance program.
of a customer who does not pay what they have promised to pay. An
expense of selling on credit. Also called uncollectible accounts.
- Seller of goods or services.
- Method of recording purchases at the full invoice price less any cash discounts.
of both the quality and liquidity of accounts receivable. Indicates how
often receivables are received and collected during the period.
Computed by dividing net sales by average accounts receivable.
account used solely for paying employees. Each pay period an amount
equal to the total employees' net pay is deposited in it and the payroll
checks are drawn on it.
that accounting for items that significantly impact financial statement
and any inferences from them adhere strictly to GAAP.
- Total compensation earned by an employee.
- Entity, to whom a note is made payable.
- Obligation to make a future payment. If, and only if, an uncertain future event occurs.
that explains the difference between the book (company) balance of cash
and the cash balance reported on the bank statement.
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.
- Includes currency, coins, and amounts on deposit in bank checking or savings accounts.
- Corporation income taxes that are deferred until future years, because of temporary differences between GAAP and the tax rules.
- IRS form used to report an employer's federal unemployment taxes on an annual filing basis.
- Document listing merchandise needed by a department and requesting it be purchased. O
- Taxes assessed on both employers and employees. For Social Security and Medicare programs.
that obligates the seller to correct or replace a product or service
when it fails to perform properly within a specified period.
- Buyer of goods or services.
- Use of electronic communication to transfer cash from one part to another.
- Document signed by a depositor instructing the bank to pay a specified amount to a designated recipient.
the Public Company Accounting Oversight Board, regulates analyst
conflicts, imposes corporate governance requirements, enhances account
and control disclosures, impacts insider transactions and executive
loans, establishes new types of criminal conduct, and expands penalties
for violations of federal securities laws.
- Withholding allowance certificate, filed with the employer, identifying the number of withholding allowances claimed.
- Expected rate of return on investments. Also called cost of capital, hurdle rate, or required rate of return.
- Contra asset account with a balance approximating uncollectible accounts receivable.
policies and procedures used to protect assets, ensure reliable
accounting, promote efficient operations, and urge adherence to the
- Table of the amounts of income tax withheld from employees' wages.
- Journal (referred to as book of original entry) in which all vouchers are recorded after they have been approved.