ACG 2021 Chapter 7 Review Questions
and Correct Answers
Bank Statement ✅a document the bank prepares to report the changes in the
depositor's cash account for a period of time. It shows the beginning bank account
balance, lists the month's cash transactions, and shows the ending bank account
balance.
Bank Collection ✅Collection of money by the bank on behalf of a depositor.
Bank Balance ✅The balance in the company's bank account according to the bank.
Deposits in Transit ✅Deposits that have been recorded by a company but not yet by
its bank
Controller ✅The individual in an organization responsible for the accounting system
and financial statements.
Purchase Order ✅A document showing details of merchandise being ordered from a
supplier.
Treasurer ✅The individual in an organization responsible for the custody of assets,
such as cash
Outstanding Checks ✅Checks that have been issued by a company and recorded in
its books but have not yet been paid by its bank.
Electronic Date Interchange (EDI) ✅Direct electronic communication between
suppliers and retailers.
Nonsufficient Funds (NSF) Check ✅A check drawn against a bank account that has
insufficient money to pay the check.
Bank Reconciliation ✅A document that identifies and explains the differences between
a depositor's record of a cash account and a bank' record of the same cash account.
Purchasing Agent ✅The individual in an organization responsible for placing orders to
purchase foods for that organization.
Electronic Funds Transfer (EFT) ✅System that transfers cash by electronic
communication rather than by paper documents.
and Correct Answers
Bank Statement ✅a document the bank prepares to report the changes in the
depositor's cash account for a period of time. It shows the beginning bank account
balance, lists the month's cash transactions, and shows the ending bank account
balance.
Bank Collection ✅Collection of money by the bank on behalf of a depositor.
Bank Balance ✅The balance in the company's bank account according to the bank.
Deposits in Transit ✅Deposits that have been recorded by a company but not yet by
its bank
Controller ✅The individual in an organization responsible for the accounting system
and financial statements.
Purchase Order ✅A document showing details of merchandise being ordered from a
supplier.
Treasurer ✅The individual in an organization responsible for the custody of assets,
such as cash
Outstanding Checks ✅Checks that have been issued by a company and recorded in
its books but have not yet been paid by its bank.
Electronic Date Interchange (EDI) ✅Direct electronic communication between
suppliers and retailers.
Nonsufficient Funds (NSF) Check ✅A check drawn against a bank account that has
insufficient money to pay the check.
Bank Reconciliation ✅A document that identifies and explains the differences between
a depositor's record of a cash account and a bank' record of the same cash account.
Purchasing Agent ✅The individual in an organization responsible for placing orders to
purchase foods for that organization.
Electronic Funds Transfer (EFT) ✅System that transfers cash by electronic
communication rather than by paper documents.
