Solved

Match the Following Terms with the Appropriate Definition

Question 202

Matching

Match the following terms with the appropriate definition:.

Premises:

Responses:

Liquid asset

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

Petty cash fund

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

Internal control system

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.

Cash

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

Outstanding checks

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

Cash equivalent

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

Purchase requisition

Money kept to cover the cost of small incidental payments.

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.

Invoice

The seller of goods or services.

Vendor

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

Premises:

Liquid asset

Petty cash fund

Internal control system

Cash

Outstanding checks

Cash equivalent

Purchase requisition

Check

Invoice

Vendor

Responses:

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

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

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.

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

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

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

Money kept to cover the cost of small incidental payments.

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.

Correct Answer:

Premises:

Responses:

Liquid asset

Petty cash fund

Internal control system

Cash

Outstanding checks

Cash equivalent

Purchase requisition

Check

Invoice