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Match the Following Definitions with the Appropriate Terms

Question 197

Matching

Match the following definitions with the appropriate terms

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

Money kept to cover the cost of small incidental payments.

Petty cash fund

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.

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.

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

Petty cash fund

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.

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.

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

The seller of goods or services.