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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
Q

Independent professional reviewing financial statements

A

External Auditor

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26
Q

Employee ensuring compliance with policies and laws

A

Internal Auditor

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27
Q

Adhering to stricter accounting standards post-Sarbanes-Oxley Act

A

SOX Compliance

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28
Q

Public Company Accounting Oversight Board ensuring auditor independence

A

PCAOB

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29
Q

Statement by auditors on fairness of financial statements

A

Audit Report

30
Q

United States Generally Accepted Accounting Principles

A

US GAAP

31
Q

Financial statements presenting fairly in all material respects

A

Fair Financial Statements

32
Q

Fraud involving two or more individuals working together

A

Collusion

33
Q

Small cash amount for immediate small purchases

A

Petty Cash Fund

34
Q

Person responsible for managing the petty cash fund

A

Petty Cash Custodian

35
Q

Documentation for payments made from the petty cash fund

A

Petty Cash Ticket

36
Q

System ensuring petty cash fund equals total fund amount

A

Imprest System

37
Q

Record-keeping for petty cash fund transactions

A

Journal Entries

38
Q

Initial journal entry to set up the petty cash fund

A

Establishing Petty Cash Fund

39
Q

Journal entry to refill the petty cash fund when low

A

Replenishing Petty Cash Fund

40
Q

Journal entry for altering the total petty cash fund amount

A

Changing Petty Cash Fund Amount

41
Q

Recording financial transactions in the accounting system

A

Journal Entry

42
Q

Creating a petty cash fund for the first time

A

Established Fund

43
Q

Adding money back into the petty cash fund to maintain a set balance

A

Replenish Fund

44
Q

Account representing discrepancies in the petty cash fund

A

Cash Short and Over

45
Q

Money in the company’s bank account

A

Cash Account

46
Q

Money specifically allocated to the petty cash fund

A

Petty Cash Account

47
Q

Receipts or evidence of expenses paid from the petty cash fund

A

Petty Cash Tickets

48
Q

Assets purchased for office use

A

Office Supplies

49
Q

Cost incurred for delivering goods or services

A

Delivery Expense

50
Q

Entry that increases assets or expenses

A

Debit

51
Q

Entry that decreases assets or expenses

A

Credit

52
Q

Obligation to pay debts or services in the future

A

Liability

53
Q

Remaining amount in an account after all transactions

A

Balance

54
Q

the sum of all funds in a specific account

A

total amount

55
Q

The amount of money currently available in the petty cash fund

A

Petty Cash Balance

56
Q

Restoring the petty cash fund to its original total amount

A

full fund

57
Q

Process of adding funds back into the petty cash fund after expenditures

A

Petty Cash Replenishment

58
Q

The date when the petty cash fund is restored to its full amount

A

Petty cash replenishment date

59
Q

The sum of money added back into the petty cash fund to reach its full balance

A

Petty Cash Replenishment Amount

60
Q

the origin of the funds used to replenish the petty cash fund

A

Petty Cash Replenishment Source

61
Q

Recording the restoration of the petty cash fund in the accounting system

A

Petty Cash Replenishment Transaction

62
Q

The account affected when adding funds back into the petty cash fund

A

Petty Cash Replenishment Account

63
Q

The steps taken to restore the petty cash fund to its full amount

A

Petty Cash Replenishment Process

64
Q

Documentation of the funds added back into the petty cash fund

A

Petty Cash Replenishment Record

65
Q

A small amount of cash kept on hand for minor expenses

A

Petty Cash

66
Q

The total amount of money currently in the petty cash fund

A

Fund Balance

67
Q

To restore the petty cash fund to its original amount

A

Replenish

68
Q

When there is less cash on hand than the recorded amount in the petty cash account

A

Cash Short

69
Q

When there is more cash on hand than the recorded amount in the petty cash account

A

Cash Over

70
Q

Bank Reconciliation

A

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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