Accounting Chapter 4

The flashcards below were created by user Drizzle on FreezingBlue Flashcards.

  1. Audit
    A periodic examination of a company's financial statements and the accounting systems, controls, and records that produce them.
  2. Cash Budget
    A budget that projects the entity's future cash receipts and cash disbursements.
  3. Cash Equivalent
    Investments such as time deposits, certificates of deposit, or high-grade government securities that are considered so similar to cash that they are combined with cash for financial purposes on the balance sheet.
  4. Controller
    The chief accounting officer of a business.
  5. Encryption
    Mathematical rearranging of data within an electronic file to prevent unauthorized access to information.
  6. Fidelity Bond
    An insurance policy taken out on employees who handle cash.
  7. Fraud Triangle
    The three elements that are present in almost all cases of fraud.  These elements are motive, opportunity, and rationalization on the part of the perpetrator.
  8. Fraudulent Financial Reporting
    Fraud perpetrated by management by preparing misleading financial statements.
  9. Imprest System
    A way to account for petty cash by maintaining a constant balance in the petty cash account, supported by the fund *cash plus payment tickets) totaling the same amount.
Card Set:
Accounting Chapter 4
2014-07-04 16:11:40
Accounting Financial

Chapter 4
Show Answers: