Chapter 14

Question 1

accrued liabilities (accrued expenses)

Answer 1

short-term obligations for services of a continuing nature that accumulate over time (interest, taxes, rent, etc)

Question 2

confirmation

Answer 2

direct communication with vendors or suppliers to determine the amount of an account payable

Question 3

consignment

Answer 3

a transfer of goods from the owner to another person who acts as the sales agent of the owner

Question 4

subsequent period

Answer 4

the time extending from the balance sheet date to the date of the auditors’ report

Question 5

trade accounts payable

Answer 5

current liabilities arising from the purchase of goods and services from trade creditors, generally evidenced by invoices or statements received from the creditors

Question 6

vendor’s statement

Answer 6

a monthly statement prepared by a vendor showing the beginning balance, charges during the month for goods and services, amounts collected, and ending balance

Question 7

voucher

Answer 7

a document authorizing a cash disbursement

Question 8

voucher register

Answer 8

a journal used in a voucher system to record liabilities requiring cash payment in the near future, every liability recorded in a voucher register corresponds to a voucher authorizing future payment