Chapter 9 Flashcards Preview

ACCT 5410 > Chapter 9 > Flashcards

Flashcards in Chapter 9 Deck (27):
1

transaction processing system

a recording and processing system

2

vendor

the person the company buys products from

3

common carrier

trucking, rail , or air freight system

4

purchase requisition

a form prepared to document the need and request that the specific items and quantities be purchased

5

purchase order

document issued to a seller by a buyer that indicates the details product, quantities and agreed upon prices

6

purchases journal

a chronological listing of all PO's issued to vendors

7

blind purchase order

includes information from the PO but it omits price and quantity of the items order, this is so that the receiving clerk has to check how much is in his shipment

8

bill of lading

provides details of the items included in the delivery, and the receiving clerk must sign that from as verification of receipt

9

packing slip

intended to show quantities and descriptions of items included in the shipment, but it does not generally include prices

10

receiving reports

details the contents and condition of a receipt

11

receiving log

a sequential listing of all receipts

12

cutoff

the date for the end of the accounting period

13

accounts payable subsidiary ledger

includes the detail of amounts owed to each vendor

14

debit memo

the document that identifies the items being returned, along with relevant info regarding vendor, quantity, and price

15

cash management

careful oversight of cash balances, forecasted cash payments, and forecasted cash receipts to insure that adequate cash balances exist to meet obligation

16

remittance advice

usually a tearoff part of a check that has a simple explanation of the reasons for the payment, including invoice numbers and transaction line item descriptions

17

cash disbursements journal

a chronological listing of all payments

18

dual signature

policy where two people sign a check if it is over a certain amount

19

three way match

principle in purchasing where a purchase order is matched to a receiving report and to an invoice

20

business process reengineering

an organized change in business processes for the purpose of improving efficiency and effectiveness

21

automated matching

a computer software technique in which the computer software matches an invoice to its related purchase order and receiving report

22

evaluated receipt settlement

invoiceless system where everything is checked electronically

23

vulnerability testing

examining the system to determine the adequacy of security measures and to identify security deficiencies

24

penetration testing

intentionally attempting to circumvent IT system access controls to determine whether there are weaknesses in any controls

25

intrusion detection

software alerts the organization to hacking or other unauthorized use of the system or network

26

epayables

electronic invoice presentment and payment EIPP

27

procurement cards

credit cards for purchases