Accounting Test 3 Flashcards Preview

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Flashcards in Accounting Test 3 Deck (17):
1

a fund set up to pay for small items with cash.

petty cash account

2

To establish a petty cash fund a ________ is written to the petty cash ________ for the amount to be set aside in the fund.
This person cashes the check and places money in petty cash box. They should be only person authorized to make payments from fund.

check
custodian

3

the only time you touch the petty cash T account is when taking away _______ amount or ______ more to it

initial
adding

4

receipt prepared for every payment from petty cash fund.

petty cash voucher

5

petty cash voucher shows what 4 things

1. name of payee
2. purpose of payment
3. Acct. to charge for payment
4. signatures of custodian & payee

6

a special multi-column record that supplements the regular accounting records/

payment records

7

payment records provide a record of each _________________ and is broken down by ________.

petty cash payment
account

8

payment records are used to prepare the _______________--

replenishment journal entry

9

Rules for replenishing the petty cash fund.

1. whenever fund is low & at end of each accounting period.

10

petty cash fund is established by __________ petty cash and ___________ cash

debiting
crediting

11

A supply of currency and coins kept in the cash register or cash drawer.

Allows businesses to make change when customers pay in cash.

At the end of the day, cash received during the day is deposited, but this is held back for use on the following day.

change fund

12

provides data for analyzing and controlling expenditures of payroll costs for a business

payroll record keeping

13

law requires payroll records be kept...

for business as a whole
for each employee

14

work under control and direction of an employer

employee

15

performs services for a fee and do not work under control and direction of company paying for services.

independent contractors

16

Compensation for managerial or administrative services
Expressed in biweekly, monthly, or annual terms

salaries

17

Compensation for skilled and unskilled labor
Expressed in terms of hours, weeks, or units produced

Wages