ACCT 2401 Exam 3 Study Guide | Accounting Review, Key Concepts & Practice
Questions
___________ is the individual in an organization responsible for the custody of assets, such as
cash. - ANS ✔✔Treasurer
____________ is the individual in an organization responsible for the accounting system and
financial statements’ - ANS ✔✔Controller
___________ is a document evidencing the receipt of goods purchased. - ANS ✔✔Receiving
Report
__________ is the individual in an organization responsible for placing orders to purchase goods
for that organization. - ANS ✔✔Purchasing Agent
___________ is the direct electronic communication between suppliers and retailers. - ANS
✔✔Electronic Data Interchange (EDI)
___________ is the system that transfers cash by electronic communication rather than by
paper documents. - ANS ✔✔Electronic Funds Transfer (EFT)
_______________ is a document that identifies and explains the differences between a
depositors record of cash account and a banks record of the same cash account. - ANS ✔✔Bank
Reconcilliation
______________ is a document that prepares to report the changes in the depositor's cash
account for a period of time. - ANS ✔✔Bank Statement
, ____________ is the balance in the company's bank account, according to the company's
accounting records or books. - ANS ✔✔Book Balance
__________ are deposits that have been recorded by a company but not yet by its bank. - ANS
✔✔Deposits in Transit
___________ are checks that have been issued by a company and recorded in its books but
have not yet been paid by its bank. - ANS ✔✔Outstanding Checks
___________ is the collection of money by the bank on behalf of a depositor. - ANS ✔✔Bank
Collection
____________ is a check drawn against a bank account that has insufficient money to pay the
check. - ANS ✔✔Nonsufficient Funds (NSF) Check
___________ are funds containing a small amount of cash that is used to pay for minor
expenditures. - ANS ✔✔Petty Cash
_______________ are highly liquid, highly safe investments that so closely resemble cash that
they may be shown with cash on the balance sheet. - ANS ✔✔Cash Equivalents
____________ is removing a customer's receivable from the accounting records because it is
considered uncollectible. - ANS ✔✔Write-Off
__________ is selling an expense caused by uncollectible accounts; also called uncollectible
accounts expense. - ANS ✔✔Bad Debt Expense
___________ is the the method of accounting for uncollectible accounts in which a customer's
account is written off as uncollectible when the business determines that the customer will not
pay. - ANS ✔✔Direct Write-Off Method
Questions
___________ is the individual in an organization responsible for the custody of assets, such as
cash. - ANS ✔✔Treasurer
____________ is the individual in an organization responsible for the accounting system and
financial statements’ - ANS ✔✔Controller
___________ is a document evidencing the receipt of goods purchased. - ANS ✔✔Receiving
Report
__________ is the individual in an organization responsible for placing orders to purchase goods
for that organization. - ANS ✔✔Purchasing Agent
___________ is the direct electronic communication between suppliers and retailers. - ANS
✔✔Electronic Data Interchange (EDI)
___________ is the system that transfers cash by electronic communication rather than by
paper documents. - ANS ✔✔Electronic Funds Transfer (EFT)
_______________ is a document that identifies and explains the differences between a
depositors record of cash account and a banks record of the same cash account. - ANS ✔✔Bank
Reconcilliation
______________ is a document that prepares to report the changes in the depositor's cash
account for a period of time. - ANS ✔✔Bank Statement
, ____________ is the balance in the company's bank account, according to the company's
accounting records or books. - ANS ✔✔Book Balance
__________ are deposits that have been recorded by a company but not yet by its bank. - ANS
✔✔Deposits in Transit
___________ are checks that have been issued by a company and recorded in its books but
have not yet been paid by its bank. - ANS ✔✔Outstanding Checks
___________ is the collection of money by the bank on behalf of a depositor. - ANS ✔✔Bank
Collection
____________ is a check drawn against a bank account that has insufficient money to pay the
check. - ANS ✔✔Nonsufficient Funds (NSF) Check
___________ are funds containing a small amount of cash that is used to pay for minor
expenditures. - ANS ✔✔Petty Cash
_______________ are highly liquid, highly safe investments that so closely resemble cash that
they may be shown with cash on the balance sheet. - ANS ✔✔Cash Equivalents
____________ is removing a customer's receivable from the accounting records because it is
considered uncollectible. - ANS ✔✔Write-Off
__________ is selling an expense caused by uncollectible accounts; also called uncollectible
accounts expense. - ANS ✔✔Bad Debt Expense
___________ is the the method of accounting for uncollectible accounts in which a customer's
account is written off as uncollectible when the business determines that the customer will not
pay. - ANS ✔✔Direct Write-Off Method
