Match the Term to the Appropriate Definition

question 25

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Internal Control

• A)A set of regulations passed by Congress in 2002 in an attempt to improve financial reporting and restore investor confidence.
• B)A process for approving and documenting all purchases and payments on account.
• C)An attempt to deceive others for personal gain.
• D)Terms of a loan agreement that if broken,entitle the lender to renegotiate loan terms or force repayment.
• E)Short-term,highly liquid investments purchased within three months of maturity.
• F)Another name for bounced checks.They arise when the check writer (your customer)does not have sufficient funds to cover the amount of the check.
• G)An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual.
• H)Actions taken to promote efficient and effective operations,protect assets,enhance accounting information,and adhere to laws and regulations.
• I)An internal control designed into the accounting system to prevent an employee from making a mistake or committing a dishonest act as part of one assigned duty and then also covering it up through another assigned duty.
• J)Not available for general use but rather restricted for a specific purpose.
• K)A process that controls the amount paid to others by limiting the total amount of money available for making payments to others.
• L)Money or any instrument that banks will accept for deposit and immediately credit to a company's account.

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Definitions:

Merchandise

Merchandise refers to goods or products that are purchased, stored, and sold by businesses to generate revenue.

Net Purchases

The total amount of purchases made by a company after subtracting returns, allowances, and discounts.

Merchandise Available

The total goods available for sale during a certain period, including both beginning inventory and purchases made.

Periodic Inventory

A periodic inventory system updates inventory balances and costs of goods sold at the end of an accounting period, rather than after each sale or purchase.