Flashcards in CH8 - Sarbanes-Oxley, Internal Control, and Cash Deck (14):
The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger.
Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institu-tions.
Highly liquid investments that are usually reported with cash on the balance sheet.
An account which has recorded errors in cash sales or errors in making change causing the amount of actual cash on hand to differ from the beginning amount of cash plus the cash sales for the day.
cash short and over account
A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts.
The overall attitude of management and employees about the importance of -controls.
The control environment, risk assessment, control activities, information and communication, and monitoring.
elements of internal control
The policies and procedures used to safeguard assets, ensure accurate business information, and ensure compliance with laws and regulations.
A special cash fund to pay relatively small amounts.
petty cash fund
Ratio that helps assess how long a company can continue to operate without additional financing or generating positive cash flows from operations.
ratio of cash to monthly cash expenses
An act passed by Congress to restore public confidence and trust in the financial statements of companies.
Cash funds used for a special business need.
A special form for recording relevant data about a liability and the details of its payment