Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 7-8

Purpose: (L.O. 1 thru 8) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Bank reconciliation	Fraud triangle
Bank service charge	Internal auditors
Bank statement	Internal control
Bonding	NSF check
Cash	Outstanding checks
Cash equivalents	Petty cash fund
Check	Restricted cash
Compensating balances	Sarbanes-Oxley Act
Deposits in transit	Voucher
Electronic funds transfer (EFT)	Voucher system
Fraud

Instructions

For each item below, enter in the blank the term that is described.

1. _____________________Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository.
2. ____________________Short-term, highly liquid investments that can be converted to a specific amount of cash.
3. ____________________A cash fund used to pay relatively small amounts.
4. ____________________All of the related methods and measures adopted within an organization to safeguard its assets and enhance the accuracy and reliability of its accounting records.
5. ____________________A fee charged by a bank for the use of its services.
6. ____________________A monthly statement from the bank that shows the depositor's bank transactions and balances.
7. ____________________A written order signed by a bank depositor directing the bank to pay a specified sum of money to a designated recipient.
8. ____________________Minimum cash balances required ...