Solved

Match Each Definition to Its Term

Question 200

Matching

Match each definition to its term

Premises:

Responses:

An asset such as cash that can be readily used to settle short-term obligations

Cash

Currency, coins and amounts on deposit in bank checking and many savings accounts

Cash equivalent

An internal document listing the goods needed by a department and requesting that it be purchased

Check

Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change

Outstanding checks

An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale

Liquid asset

All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies

Internal control system

The buyer or purchaser of goods or services

Vendee

Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment

Vendor

A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient

Purchase requisition

The seller of goods or services

Invoice

Premises:

An asset such as cash that can be readily used to settle short-term obligations

Currency, coins and amounts on deposit in bank checking and many savings accounts

An internal document listing the goods needed by a department and requesting that it be purchased

An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale

All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies

The buyer or purchaser of goods or services

Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment

A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient

The seller of goods or services

Responses:

Cash

Cash equivalent

Check

Outstanding checks

Liquid asset

Internal control system

Vendee

Vendor

Purchase requisition

Invoice

Correct Answer:

Premises:

Responses:

An asset such as cash that can be readily used to settle short-term obligations

Currency, coins and amounts on deposit in bank checking and many savings accounts

An internal document listing the goods needed by a department and requesting that it be purchased

An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale

All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies

The buyer or purchaser of goods or services

Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment

A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient

The seller of goods or services