Accy 201 test 2 Ole Miss – Burney. Questions With 100% Correct Answers!!

bank reconciliation - a report explaining any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement. cash - currency and coins along with the amounts on deposit in bank accounts, checking accounts, and many savings accounts. cash discount - reduction in a receivable or payable if it is paid within the discount period. cash equivalents - short-term, highly liquid investment assets meeting two criteria: (1) readily convertible to a known cash amount and (2) sufficiently close to their due date so that their market value is not sensitive to interest rate changes. committee of sponsoring organizations (COSO) - group that provides a framework for how the seven principles of internal control improve the quality of financial reporting. consignee - someone who sells goods for the owner. consignor - the owner of goods that are being shipped cost of goods sold - the term used for the expense of buying and preparing the merchandise. credit period - the amount of time allowed before full payment is due. days' sales in inventory = (ending inventory/cost of goods sold) X 365 - days' sales in inventory deposits in transit - deposits made and recorded by the depositor but not yet recorded on the bank unt period - time period in which a cash discount is available. first-in, first-out (FIFO) - a method of assigning costs to both inventory and cost of goods sold that assumes that inventory items are sold in the order acquired