ACC 231 MIDTERM LATEST EXAM TEST
QUESTIONS AND ANSWERS SURE A+
✔✔Purchasing Agent - ✔✔The individual in an organization responsible for placing
orders to purchase goods for that organization.
✔✔Controller - ✔✔The individual in an organization responsible for the accounting
system and financial statements.
✔✔Treasurer - ✔✔The individual in an organization responsible for the custody of
assets, such as cash.
✔✔Electronic Data Interchange (EDI) - ✔✔Direct electronic communication between
suppliers and retailers.
✔✔Electronic Funds Transfer (EFT) - ✔✔System that transfers cash by electronic
communication rather than by paper documents.
✔✔Bank Reconcilliation - ✔✔A document that identifies and explains the differences
between a depositor's record of a cash account and a bank's record of the same cash
account.
, ✔✔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 Balance - ✔✔The balance in the company's bank account according to the
bank.
✔✔Book Balance - ✔✔The balance in a company's bank account according to the
company's accounting records, or books.
✔✔Deposits in Transit - ✔✔Deposits that have been recorded by a company but not yet
by its bank.
✔✔Outstanding Checks - ✔✔Checks that have been issued by a company and
recorded in its books but have not yet been paid by its bank.
✔✔Bank Collection - ✔✔Collection of money by the bank on behalf of a depositor.
✔✔Lock-Box System - ✔✔A system in which customers send payments to a post office
box of a business. The bank collects payments from the box and deposits them into the
business's account.
✔✔Nonsufficient Funds (NSF) Check - ✔✔A check drawn against a bank account that
has insufficient money to pay the check.
✔✔Petty Cash - ✔✔Fund containing a small amount of cash that is used to pay for
minor expenditures.
✔✔Cash Equivalents - ✔✔Highly liquid, highly safe investments that so closely
resemble cash that they may be shown with cash on the balance sheet.
✔✔Write Off - ✔✔Removing a customer's receivable from the accounting records
because it is considered uncollectible.
✔✔Bad Debt Expense - ✔✔Selling expense caused by uncollectible accounts; also
called uncollectible accounts expense.
✔✔Direct Write-Off Method - ✔✔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.
QUESTIONS AND ANSWERS SURE A+
✔✔Purchasing Agent - ✔✔The individual in an organization responsible for placing
orders to purchase goods for that organization.
✔✔Controller - ✔✔The individual in an organization responsible for the accounting
system and financial statements.
✔✔Treasurer - ✔✔The individual in an organization responsible for the custody of
assets, such as cash.
✔✔Electronic Data Interchange (EDI) - ✔✔Direct electronic communication between
suppliers and retailers.
✔✔Electronic Funds Transfer (EFT) - ✔✔System that transfers cash by electronic
communication rather than by paper documents.
✔✔Bank Reconcilliation - ✔✔A document that identifies and explains the differences
between a depositor's record of a cash account and a bank's record of the same cash
account.
, ✔✔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 Balance - ✔✔The balance in the company's bank account according to the
bank.
✔✔Book Balance - ✔✔The balance in a company's bank account according to the
company's accounting records, or books.
✔✔Deposits in Transit - ✔✔Deposits that have been recorded by a company but not yet
by its bank.
✔✔Outstanding Checks - ✔✔Checks that have been issued by a company and
recorded in its books but have not yet been paid by its bank.
✔✔Bank Collection - ✔✔Collection of money by the bank on behalf of a depositor.
✔✔Lock-Box System - ✔✔A system in which customers send payments to a post office
box of a business. The bank collects payments from the box and deposits them into the
business's account.
✔✔Nonsufficient Funds (NSF) Check - ✔✔A check drawn against a bank account that
has insufficient money to pay the check.
✔✔Petty Cash - ✔✔Fund containing a small amount of cash that is used to pay for
minor expenditures.
✔✔Cash Equivalents - ✔✔Highly liquid, highly safe investments that so closely
resemble cash that they may be shown with cash on the balance sheet.
✔✔Write Off - ✔✔Removing a customer's receivable from the accounting records
because it is considered uncollectible.
✔✔Bad Debt Expense - ✔✔Selling expense caused by uncollectible accounts; also
called uncollectible accounts expense.
✔✔Direct Write-Off Method - ✔✔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.
