Ch8 Internal Control and Cash

What is Bank Reconciliation? Bank reconciliation is the analysis that shows the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger. What is Cash? Cash is the medium of exchange that includes coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions. What are Cash Equivalents? Cash equivalents are highly liquid investments that are usually reported together with cash on the balance sheet. Examples: Treasury Bills and Commercial Paper. What is Cash Short and Over Account? The cash short and over account is the account into which we record errors in cash sales or errors in making change. What is Doomsday Ratio? The doomsday ratio is the ratio of cash and cash equivalents to current liabilities. What is Electronic Funds Transfer (EFT)? EFT is a system in which computers rather than paper (money, checks, etc.) are used to effect cash transactions. EFTs are also called 'Wire Transfers.' What is Petty Cash Fund? The petty cash fund is a special fund set up to pay small expenditures. What is Voucher? The voucher is a special form for recording relevant data about a liability and the details of its payment. What is Voucher System? The voucher system is a set of procedures for authorizing and recording liabilities and cash payments. What are Outstanding Checks? Outstanding checks are checks recorded in the ledger but not yet paid by the bank. What are Deposits in transit? Deposits in transit are deposits that are included in the general ledger, but not in the bank balance. Ch1 Accounting in Action Ch2 Recording Process Ch3 Adjusting the Accounts Ch4 Completing the Accounting Cycle Ch5 Merchandising Operations Ch6 Inventories Ch7 Accounting Information Systems Ch8 Internal Control and Cash Ch9 Accounting for Receivables Ch10 PP&E, Natural Resources, and Intangible Assets Ch11 Current Liabilities and Payroll Ch12 Partnerships Ch13 Corporations Ch14 Corporations:Dividends, RE Ch15 Long Term Liabilities Ch16 Investment Ch17 Statement of Cash Flows Ch18 Financial Statement Analysis Plato and Accounting Price/Earnings Ratio Plant Assets Luca Pacioli and DaVinci The secrets of 'no-doze' prose: Mary Duffy's Sentence Openers

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