| Bank reconciliation | Report that explains the difference between the book (company) balance of cash and the cash balance reported on the bank statement.
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| Bank statement | Bank report on the depositor's beginning and ending cash balances, and a listing of its changes, for a period.
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| Canceled checks | Checks that the bank has paid and deducted from the depositor's account.
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| Cash | Includes currency, coins, and amounts on deposit in bank checking or savings accounts.
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| Cash equivalents | Short-term, investment assets that are readily convertible to a known cash amount or sufficiently close to their maturity date (usually within 90 days) so that market value is not sensitive to interest rate changes.
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| Cash Over and Short | Income statement account used to record cash overages and cash shortages arising from errors in cash receipts or payments.
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| Check | Document signed by the depositor instructing the bank to pay a specified amount to a designated recipient.
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| Days' sales uncollected | Measure of the liquidity of receivables computed by dividing the current balance of receivables by the annual credit (or net) sales and then multiplying by 365; also called days' sales in receivables.
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| Deposit ticket | Lists items such as currency, coins, and checks deposited and their corresponding dollar amounts.
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| Deposits in transit | Deposits recorded by the company but not yet by its bank.
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| Discounts lost | Expenses resulting from failures to take advantage of cash discounts on purchases.
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| Electronic funds transfer (EFT) | Use of electronic communication to transfer cash from one party to another.
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| Imprest system | Method to account for petty cash; maintains a constant balance in the fund, which equals cash plus petty cash receipts.
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| Internal control system | All policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies.
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| Invoice | Itemized record of goods prepared by the vendor that lists the customer's name, items sold, sales prices, and terms of sale.
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| Invoice approval | Document containing a checklist of steps necessary for approving an invoice for recording and payment; also called check authorization.
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| Liquid assets | Resources such as cash that are easily converted into other assets or used to pay for goods, services, or liabilities.
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| Liquidity | Availability of resources to meet short-term cash requirements.
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| Net method | Method of recording purchases at the full invoice price less any cash discounts.
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| Nonsufficient funds (NSF) check | Maker's bank account has insufficient money to pay the check; also called hot check.
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| Outstanding checks | Checks written and recorded by the depositor but not yet paid by the bank at the bank statement date.
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| Petty cash | Small amount of cash in a fund to pay minor expenses.
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| Principles of internal control | Principles requiring management to establish responsibility, maintain records, insure assets, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, and perform reviews.
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| Purchase order | Document used by the purchasing department to place an order with a seller (vendor).
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| Purchase requisition | Document listing merchandise needed by a department and requesting it be purchased.
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| Receiving report | Form used to report that ordered goods are received and to describe their quantity and condition.
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| Signature card | Includes the signatures of each person authorized to sign checks on the bank account.
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| Vendee | Buyer or purchaser of goods or services.
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| Vendor | Seller of goods or services.
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| Voucher | Internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.
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| Voucher system | Procedures and approvals designed to control cash disbursements and acceptance of obligations.
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