Match Each of the Following Terms with the Appropriate Definitions

question 79

Essay

Match each of the following terms with the appropriate definitions.
1. Fundamental guidelines applicable to all companies established to minimize the risk of fraud and theft and to increase the reliability and accuracy of the accounting records.
2. A method of initially recording purchases at the full invoice price ignoring any cash discount.
3. A document used within the company to notify the appropriate persons that ordered goods have been received and to describe the quantity and condition of the goods.
4. An income statement account used to record the income effects of cash overages and cash shortages arising from missing petty cash receipts or errors in making change.
5. A measure of how quickly a company can convert its accounts receivable into cash.
6. A document the purchasing department uses to place an order with a supplier.
7. A set of procedures and approvals designed to control cash disbursements and the acceptance of obligations.
8. A method of initially recording purchases at the invoice price less any purchase discounts offered by the seller.
9. A report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement.
10. The ability of a company to pay for its near-term obligations.

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Definitions:

Government Agencies

Public sector organizations established at federal, state, or local levels to administer specific functions and services on behalf of the government.

Desired Profit

The targeted amount of profit a company aims to achieve within a specific period, often used in budgeting and planning.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Unit Selling Price

The amount for which a unit of product is sold, not including any discounts or allowances.