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Accounting Ch 8

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Updated 2007-03-29 18:37

Accounting Ch 8

TermDefinition
Internal ControlPlan and measures to safeguard assets, encourage employees to follow policy, promote operational efficiency, and ensure accurate and reliable accounting records.
ControllerThe chief accounting officer of a company
AuditAn examination of a company's financial statements and the accounting system.
Computer VirusA malicious program that (a) reproduces, (b) enters program code without consent, and (c) performs destructive actions.
Trojan HorseA malicious program that works like a virus but does not reproduce.
CheckDocument that instructs a bank to pay the designated person or business a specified amount of money.
Bank StatementDocument that a bank uses to report what it did with the depositor's cash.
Electronic Funds Transfer (EFT)System that transfers cash by electronic communication rather than by paper documents.
Bank ReconciliationDocument explaining the reasons for the difference between a depositor's cash records and the depositor's cash balance in its bank account.
Deposit in TransitA deposit recorded by the company but not yet by its bank.
Outstanding CheckA check issued by the company and recorded on its books but not yet paid by its bank.
Bank CollectionCollection of money by the bank on behalf of a depositor.
Nonsufficient Funds (NSF) CheckA hot check, one for which the maker's bank account has insufficient money to pay the check.
Petty CashFund containing a small amount of cash that is used to pay for minor expenditures.
Imprest SystemA way to account for petty cash by maintaining a constant balance in the petty cash account, supported by the fund (cash plus payment tickets) totaling the same amount.
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