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Review of Chapters

Terms

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A summary of all the transactions a bank uses to maintain a record of all checking account transactions is called a
Bank Statement
What is the normal balance of Cost of Merchandise sold
Debit
........... requires companies to maintain strong and effective internal controls and to report on the effectiveness of the internal controls
Sarbanes- Oxley
Any document that serves as proof of authority to pay cash or use electronic funds transfer is called a
Voucher
The ownship of the merchandise may pass to the buyer when the buyer receives the merchandise. In this case, the terms are said to be
FOB destination
In the Current Assets section of the balance sheet, which asset is usually listed first
Cash
When assets are safeguarded and used for business purposes, this is an example of the objectives of...
Internal Controls
The ownship of the merchandise may pass to the buyer when the seller delievers the merchandise to the transportation company or freight carrier, In this case the terms are said to be
FOB shipping point
What is the normal balance of Merchandise Inventory
Debit
A set of procedures for authorizing and recording liabilities and cash payments is called a
Voucher System
Control over inventory should begin as soon as the inventory is
recieved
The debtor is the
Borrower
The ending inventory is made up of the most recent costs when this method is used
FIFO
A company may have cahs in excess of its operating needs. In such cases, the company normally invests in highly liquid investments in order to earn interest called
Cash Equivalents
To ensure the accuracy of the amount of the inventory reported in the financial statements, a merchandising business should take a
physical inventory
The creditor is the
Lender

Deck Info

16

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