Chapter 7 - Internal Control & Cash Flashcards
1
Q
Cash Equivalent
A
Item that is readily convertible into a specific amount of cash and has very little risk of a change in value.
2
Q
Bank Indebtedness (Definition and Classification {A, L, SE, E, R})
A
Cash in a deficit or overdraft at year-end (current liability)
3
Q
Why is cash the asset that is most susceptible to theft?
A
It is liquid and anonymous (cash has no form of identification)
