A Written Statement of Why a Company Exists and What

question 42

Short Answer

A written statement of why a company exists and what it plans to accomplish is called a(n) ________.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the issuing party's account but have not yet been cashed or cleared by the bank.

Reconciliation Procedure

A process used to ensure that two sets of records (usually the balances of two accounts) are in agreement, identifying discrepancies and reasons for them.

Internal Control

Internal control constitutes the procedures and mechanisms implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Disbursements Procedure

A systematic method followed by a business to process and document the outflow of cash for various expenditures.