Solved

Match the Following Terms with the Appropriate Definition

Question 202

Matching

Match the following terms with the appropriate definition:.

Premises:

Responses:

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

Liquid asset

The seller of goods or services.

Internal control system

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

Petty cash fund

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.

Purchase requisition

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

Cash equivalent

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.

Cash

Money kept to cover the cost of small incidental payments.

Vendor

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

Outstanding checks

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

Check

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

Invoice

Premises:

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

The seller of goods or services.

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

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.

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

Money kept to cover the cost of small incidental payments.

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

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.

Responses:

Liquid asset

Internal control system

Petty cash fund

Purchase requisition

Cash equivalent

Cash

Vendor

Outstanding checks

Check

Invoice

Correct Answer:

Premises:

Responses:

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

The seller of goods or services.

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

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.

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

Money kept to cover the cost of small incidental payments.

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

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.