Matching Questions 142. Match each of the following terms with the appropriate 1. Principles requiring management to establish responsibility, maintain adequate records, insure assets, separate...

1. Principles requiring management to establish responsibility, maintain adequate records, insure assets, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls and perform reviews

Petty Cash

2. A method of recording purchases at the full invoice price without deducting any cash discounts

Principles of internal control

3. A measure of the liquidity of receivables computed by taking the current balance of receivables and dividing by periods credit sales and then multiplied by 365

Days' sales uncollected

4. A document used by the purchasing department to place an order with a vendor purchase

Order

5. A report that explains any differences between the checking account balance according to the depositor's records and the balance reported on the bank statement

Voucher

6. The ability of a company to pay for its short-term obligations

Gross method

7. An income statement account used to record cash overages and cash shortages arising from missing petty cash receipts or from errors in making change

Cash Over and Short

8. A fund used for disbursements related to small items such as postage

Bank reconciliation

9. An internal business document (or file) used to accumulate information to control cash disbursements and to ensure that the transaction is properly recorded

Liquidity

10. An internal document used to report that ordered goods are received and to describe the quantity and condition

Receiving report