Accounting Process: Chapter 13 Flashcards
It is a plan of organization designed to provide an effective accounting system.
Internal Control
It is the foundation of internal control within an organization.
Environment Control
It requires a set of procedures to be followed such as defined specific responsibilities for each employee emphasizing segregation of duties/work.
Monitoring Activities
It ensures that all business transactions are properly documented and recorded.
Record Control
It ensures that assets are physically protected and recorded.
Asset Control
An officer who is in charge of the implementation of internal control procedures.
Internal Auditor
It is an internal control procedure which aims to protect the cash receipts and disbursements of a business.
Imprest System
It is used for small amount of expenses.
Petty Cash Fund
It is a memorandum book where disbursements out of the petty cash are recorded.
Petty Cash Book
It is a written order by a depositor addressed to the bank telling it to pay the person or entity named on the check and deduct a specific sum of money from the depositor’s account.
Check
It shows the balance of the depositor’s account.
Bank Statement
It is prepared by the bank decreasing the depositor’s cash balance.
Debit Memorandum
It is a check received found to have no sufficient funds.
NSF Check
It increases the depositor’s bank balance.
Credit Memorandum
Deposit made by the company received too late by the bank to be recorded on the same day.
Deposit In Transit
