Match the Term to the Appropriate Definition

question 167

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Restricted Cash

• A)Money or any instrument that banks will accept for deposit and immediately credit to a company's account.
• B)A process for approving and documenting all purchases and payments on account.
• C)Short-term,highly liquid investments purchased within three months of maturity.
• D)Actions taken to promote efficient and effective operations,protect assets,enhance accounting information,and adhere to laws and regulations.
• E)Not available for general use but rather restricted for a specific purpose.
• F)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.
• G)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.
• H)An attempt to deceive others for personal gain.
• I)A set of regulations passed by Congress in 2002 in an attempt to improve financial reporting and restore investor confidence.
• J)An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual.
• K)A process that controls the amount paid to others by limiting the total amount of money available for making payments to others.
• L)Terms of a loan agreement that if broken,entitle the lender to renegotiate loan terms or force repayment.

---

Definitions:

Incorporated by Reference

A method in legal documents where the contents of an external document are made a part of the main document by mentioning it explicitly.

Testator

An individual who has made a will or testament to dictate the distribution of their assets after their death.

Testamentary Capacity

The legal and mental ability of an individual to make or alter a valid will, including understanding the nature of the document and the assets.

Prudent Person Rule

A legal principle requiring that a person in charge of others' assets manage those assets with the care, diligence, and judgment that a prudent person would under similar circumstances.