Match the Following Terms with the Appropriate Definition

question 49

Essay

Match the following terms with the appropriate definition.
1. The set of policies and procedures managers use to monitor and control business activities.
2. The supplier (seller) of goods or services.
3. An expense used under the net method of accounting for purchases resulting from failure to take advantage of cash discounts offered.
4. Currency, coins, and amounts on deposit in bank accounts.
5. An asset such as cash that can be readily used to settle near-term obligations.
6. Regulation requiring public companies to document and certify their system of internal controls.
7. An internal document listing the goods needed by a department and requesting that the goods be purchased.
8. Short-term, highly liquid investments that are readily convertible to a known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate changes.
9. A bill sent from the supplier to the buyer.
10. A device that perforates the amount of a check into its face, making it difficult to alter.

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Definitions:

In-Process Goods

Items that are currently in the production process but not yet completed.

External Failure Cost

Expenses incurred from products not meeting quality criteria post-delivery, encompassing returns, repairs, and warranty filings.

Quality Cost Report

A quality cost report is a financial analysis detailing the costs associated with preventing, detecting, and correcting defective work in a company.

Returns And Allowances

A reduction in sales revenue due to customers returning products or receiving allowances for defective or unsatisfactory goods.