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Chapter 18
Auditing Test #3
14
Accounting
Undergraduate 4
12/06/2011

Additional Accounting Flashcards

 


 

Cards

Term
AP master file
Definition
a computer file for maintaining a record for each vendor of individual acquisitions, cash disbursements, acquisitions returns and allowances, and vendor balances
Term
AP trial balance
Definition
a listing of the amount owed to each vendor at a point in time; prepared directly from the accounts payable master file
Term
acquisition and payment cycle
Definition
the transaction cycle from the acquisition of and payment for goods and services from suppliers outside the organization
Term
acquisitions journal
Definition
a journal or listing generated from the acquisitions transaction file and typically includes information such as vendor name, date, amount, and account classification for each transaction
Term
cutoff tests
Definition
tests to determine whether transactions recorded a few days before and after the balance sheet date are included in the period
Term
debit memo
Definition
a document indicating a reduction in the amount owed to a vendor because of returned goods or an allowance granted
Term
FOB Destination
Definition
shipping contract in which title to the goods passes to the buyer when the goods are received
Term
FOB origin
Definition
shipping contract in which title to the goods passes to the buyer at the time that the goods are shipped
Term
purchase order
Definition
a document prepared or electronically issued by the purchasing department indicating the description, quantity, and related information for goods and services that the company intends to purchase
Term
purchase requisition
Definition
request by an authorized employee to the purchasing department to place an order for inventory and other items used by the entity
Term
receiving report
Definition
a document prepared by the tangible goods are received, indicating the description of the goods, the quantity received, the date received, and other relevant data; it is part of the documentation necessary for payment to be made
Term
vendor's invoice
Definition
a document or record that specifies the details of an acquisition transaction and amount of money owed to the vendor for an acquisition
Term
vendor's statements
Definition
a statement prepared monthly by the vendor, which indicates the customer's beginning balance, acquisitions, payments and ending balance
Term
voucher
Definition
a document used to establish a formal means of recording and controlling acquisitions, primarily by enabling each acquisition transaction to be sequentially numbered
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