(See related pages)
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| Acid-test ratio | A ratio used to assess a company's ability to cover its current debts with existing assets calculated as quick assets (cash, short-term investments, and receivables) divided by current liabilities; also called quick ratio. (See page(s) 486) |
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| Bank credit card | A credit card that is issued by a bank. (See page(s) 474) |
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| Bank reconciliation | An analysis that explains the difference between the balance of a chequing account shown in the depositor's records and the balance reported on the bank statement. (See page(s) 476) |
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| Bond | An insurance policy purchased by a company to protect against losses from theft by that employee. (See page(s) 463) |
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| Cancelled cheques | Cheques that the bank has paid and deducted from the customer's account during the month. (See page(s) 476) |
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| Cash | Includes currency, coins, and amounts on deposit in bank chequing or savings accounts. (See page(s) 466) |
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| Cash Over and Short account | An income statement account used to record cash shortages and cash overages arising from omitted petty cash receipts and from errors in making change. (See page(s) 467) |
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| Cheque | A document signed by the depositor instructing the bank to pay a specified amount of money to a designated recipient. (See page(s) 473) |
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| Collusion | An act in which two or more people agree to commit a fraud. (See page(s) 463) |
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| Debit card | Card used at point of sale to transfer payment for a purchase immediately from the customer's to the vendor's bank account. (See page(s) 474) |
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| Deposit slip | Lists the items such as currency, coins, and cheques deposited along with each of their dollar amounts. (See page(s) 472) |
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| Electronic funds transfer | The use of electronic communication to transfer cash from one party to another. (See page(s) 473) |
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| Internal control system | All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. (See page(s) 462) |
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| Liquid asset | An asset such as cash that is easily converted into other types of assets or used to buy services or to pay liabilities. (See page(s) 466) |
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| Liquidity | A characteristic of an asset that refers to how easily the asset can be converted into cash or another type of asset or used in paying for services or obligations. (See page(s) 466) |
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| Petty cashier | Employee responsible for safekeeping of the cash, making payments from this fund, and keeping accurate records. (See page(s) 468) |
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| Principles of internal control | Fundamental principles of internal control that apply to all companies requiring management to ensure transactions and activities are authorized, maintain records, insure assets, separate recordkeeping and custody of assets, establish a separation of duties, apply technological controls, and perform internal and external audits. (See page(s) 462) |
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| Quick assets | Those current assets that are most liquid, specifically cash, short-term investments, and receivables. (See page(s) 486) |
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| Quick ratio | See acid-test ratio. (See page(s) 486) |
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| Separation of duties | An internal control principle requiring the division of responsibility for related transactions between two or more individuals or departments. (See page(s) 463) |
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| Signature card | Includes the signature of each person authorized to sign cheques from the account. (See page(s) 472) |