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Financial Accounting > Understanding Petty Cash and Journal Entries > Flashcards

Understanding Petty Cash and Journal Entries Flashcards

to learn about the new terms for class

1
Q

Business providing services, not products

A

Service Business

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2
Q

Plans and measures to safeguard assets and ensure accurate accounting

A

Internal Controls

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3
Q

Assigning different tasks to prevent fraud

A

Separation of Duties

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4
Q

Recording transactions for accountability

A

Proper Documentation

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5
Q

Devices to prevent theft, like alarms on inventory

A

Security Sensors

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6
Q

Protecting data with coding

A

Encryption

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7
Q

Company employees checking compliance and procedures

A

Internal Audits

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8
Q

Independent review of financial statements and controls

A

External Audits

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9
Q

Generally accepted accounting principles

A

GAAP

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10
Q

Law to reform accounting and auditing practices post-Enron scandal

A

Sarbanes-Oxley Act (SOX)

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11
Q

Recording income when earned, not before

A

Revenue Recognition

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12
Q

Entities to manage specific risks or assets

A

Special Purpose Entities

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13
Q

Entities to manage specific risks or assets

A

Special Purpose Entities

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14
Q

Accounting firm involved in Enron scandal

A

Arthur Andersen

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15
Q

Person who exposes illegal activities within an organization

A

Whistleblower

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16
Q

Major accounting fraud case leading to bankruptcy

A

Enron Scandal

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17
Q

Auditor’s positive assessment of financial statements

A

Unqualified Opinion

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18
Q

Auditor’s negative assessment of financial statements

A

Qualified Adverse Opinion

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19
Q

Auditor’s inability to form an opinion on financial statements

A

Disclaimer of Opinion

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20
Q

Specific actions to safeguard assets and ensure accuracy

A

Internal Controls Procedures

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21
Q

Employees switching roles to prevent fraud

A

Job Rotations

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22
Q

Employees focused on preventing theft

A

Loss Prevention Workers

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23
Q

Access codes to protect digital information

A

Passwords

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24
Q

Reviewing financial information and procedures for compliance

A

Auditing

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25
Independent professional reviewing financial statements
External Auditor
26
Employee ensuring compliance with policies and laws
Internal Auditor
27
Adhering to stricter accounting standards post-Sarbanes-Oxley Act
SOX Compliance
28
Public Company Accounting Oversight Board ensuring auditor independence
PCAOB
29
Statement by auditors on fairness of financial statements
Audit Report
30
United States Generally Accepted Accounting Principles
US GAAP
31
Financial statements presenting fairly in all material respects
Fair Financial Statements
32
Fraud involving two or more individuals working together
Collusion
33
Small cash amount for immediate small purchases
Petty Cash Fund
34
Person responsible for managing the petty cash fund
Petty Cash Custodian
35
Documentation for payments made from the petty cash fund
Petty Cash Ticket
36
System ensuring petty cash fund equals total fund amount
Imprest System
37
Record-keeping for petty cash fund transactions
Journal Entries
38
Initial journal entry to set up the petty cash fund
Establishing Petty Cash Fund
39
Journal entry to refill the petty cash fund when low
Replenishing Petty Cash Fund
40
Journal entry for altering the total petty cash fund amount
Changing Petty Cash Fund Amount
41
Recording financial transactions in the accounting system
Journal Entry
42
Creating a petty cash fund for the first time
Established Fund
43
Adding money back into the petty cash fund to maintain a set balance
Replenish Fund
44
Account representing discrepancies in the petty cash fund
Cash Short and Over
45
Money in the company's bank account
Cash Account
46
Money specifically allocated to the petty cash fund
Petty Cash Account
47
Receipts or evidence of expenses paid from the petty cash fund
Petty Cash Tickets
48
Assets purchased for office use
Office Supplies
49
Cost incurred for delivering goods or services
Delivery Expense
50
Entry that increases assets or expenses
Debit
51
Entry that decreases assets or expenses
Credit
52
Obligation to pay debts or services in the future
Liability
53
Remaining amount in an account after all transactions
Balance
54
the sum of all funds in a specific account
total amount
55
The amount of money currently available in the petty cash fund
Petty Cash Balance
56
Restoring the petty cash fund to its original total amount
full fund
57
Process of adding funds back into the petty cash fund after expenditures
Petty Cash Replenishment
58
The date when the petty cash fund is restored to its full amount
Petty cash replenishment date
59
The sum of money added back into the petty cash fund to reach its full balance
Petty Cash Replenishment Amount
60
the origin of the funds used to replenish the petty cash fund
Petty Cash Replenishment Source
61
Recording the restoration of the petty cash fund in the accounting system
Petty Cash Replenishment Transaction
62
The account affected when adding funds back into the petty cash fund
Petty Cash Replenishment Account
63
The steps taken to restore the petty cash fund to its full amount
Petty Cash Replenishment Process
64
Documentation of the funds added back into the petty cash fund
Petty Cash Replenishment Record
65
A small amount of cash kept on hand for minor expenses
Petty Cash
66
The total amount of money currently in the petty cash fund
Fund Balance
67
To restore the petty cash fund to its original amount
Replenish
68
When there is less cash on hand than the recorded amount in the petty cash account
Cash Short
69
When there is more cash on hand than the recorded amount in the petty cash account
Cash Over
70
Bank Reconciliation
A process of matching the balances in a company's accounting records to the corresponding information on a bank statement

Financial Accounting (2 decks)

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