Accounting and Financial Management Terms and Definitions, Quizzes of Financial Accounting

Download Accounting and Financial Management Terms and Definitions and more Quizzes Financial Accounting in PDF only on Docsity! TERM 1 Establishment of Responsibility DEFINITION 1 Control is most effective when 1 person is in control TERM 2 Segregation of Duties DEFINITION 2 Related Duties should be assigned to different individuals TERM 3 Documentation Procedure DEFINITION 3 Companies should use pre-numbered documents and all documents should be accounted for TERM 4 Independent Internal Verification DEFINITION 4 Records periodically verified by an employee who is independent TERM 5 Human Resource DEFINITION 5 ContrasRotates employees duties TERM 6 Limitations of internal control DEFINITION 6 cost should not exceed benefitshuman elementsize of business TERM 7 Service Organization DEFINITION 7 records a receivable when it provides service on account TERM 8 Merchandiser DEFINITION 8 records accounts receivable at the point of sale of merchandise TERM 9 Allowance Method DEFINITION 9 Losses are EstimatedBetter MatchingReceivable Stated at Net Realizable ValueRequired by GAAP TERM 10 Percentage of Receivable DEFINITION 10 customer balances are classified by the length time they have been unpaid TERM 21 Ordinary Repairs DEFINITION 21 expenditures to maintain the operating effencyDebit Maintance Repair TERM 22 Additions and Improvements DEFINITION 22 cost incurred to income theDebit Plant Asset Affected TERM 23 Impairments DEFINITION 23 Decline in value occurs TERM 24 Sale of Plant Assets DEFINITION 24 proceeds received from the sale TERM 25 Expenditures DEFINITION 25 that may lead to patents copyrights and new products TERM 26 Copyrights DEFINITION 26 Give the owner the exclusively sell artistic work TERM 27 Trademarks DEFINITION 27 Legal protection of name TERM 28 Franchise DEFINITION 28 Contractual arrangement between franchises TERM 29 goodwill DEFINITION 29 not amortized TERM 30 Separate Legal Existance DEFINITION 30 Cooperation acts under its own name TERM 31 Limited Liability DEFINITION 31 limited to their investment TERM 32 Transferable Ownership Rights DEFINITION 32 Shareholders may sell their stock TERM 33 Abiltity to aqurire Capital DEFINITION 33 Corporation can obtain capital TERM 34 Continious Life DEFINITION 34 life goes on TERM 35 Corporate Management DEFINITION 35 separation of ownership and management