Match the following terms with the appropriate definitions below. Definitions have not been provided for all of these terms.
a. Interest
b. Principal
c. Liabilities
d. Debtor
e. Creditor
f. Sales revenue
g. Accounts receivable
h. Accounts payable
_____ 1. A party that lends resources with the understanding that the resources will be returned later
_____ 2. The amount borrowed or loaned
_____ 3. What you pay for the use of other people's money or what you earn by lending money
_____ 4. Assets created by selling goods to customers on credit
_____ 5. A party that borrows resources with the understanding that the resources will be repaid later
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Q. 2) Discrepancies between data items recorded by a system and the underlying economic events or objects they represent are a violation of the control goal of:
a. ensure input validity
b. ensure input completeness
c. ensure input accuracy
d. ensure update completeness
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Q. 3) Identify each of the following reconciling items in the bank reconciliation process as being a reconciling item either on the bank's side (Bank) or on the company's side (Book) of the bank reconciliation.
_____ 1. A bank fee for printing new checks
_____ 2. Team Shirts correctly deposited a check for 882. The bank recorded the check as 828.
_____ 3. Outstanding checks
_____ 4. Deposits in transit
_____ 5. Team Shirts deposited a check that it had recorded as 89.00. The bank correctly recorded the check as 98.
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Q. 4) A(n) ____________________ is a special multi-column record used to keep track of payments from the petty cash fund as a supplement to the accounting records.
Fill in the blank(s) with correct word
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Q. 5) Clean Sweep performed cleaning services and billed the customer for 900. This transaction includes ________.
A) revenue and an account payable
B) revenue and an account receivable
C) revenue and cash
D) revenue and retained earnings
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Q. 6) Inventory shrinkage is recorded when
a. merchandise is returned by a buyer
b. merchandise purchased from a seller is incomplete or short
c. merchandise is returned to a seller
d. there is a difference between a physical count of inventory and inventory records
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