Chapter 8 Notes - Chapter 8 Notes Bank reconciliation - The...

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Chapter 8 Notes Bank reconciliation - The analysis that details the items responsible for the difference between the cash balance reported in the bank statement and the balance of the cash account in the ledger. (364) Bank statement - A summary of all transactions mailed to the depositor or made available online by the bank each month. (360) Cash - Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions. (357) Cash - equivalents Highly liquid investments that are usually reported with cash on the balance sheet. (368) Cash short and over account - An account which has recorded errors in cash sales or errors in making change causing the amount of actual cash on hand to differ from the beginning amount of cash plus the cash sales for day. (357) Compensating balance - A requirement by some banks requiring depositors to maintain minimum cash balances in their bank accounts. (368) Electronic funds transfer (EFT) - A system in which computers rather than paper (money, checks, etc.) are used to effect cash transactions. (358) Elements of internal control - The control environment, risk assessment, control activities, information and communication, and monitoring. (351) Employee Fraud - The intentional act of deceiving and employer for personal gain. (350) Internal Controls - The policies and procedures used to safeguard assets, ensure accurate business information, and ensure compliance with laws and regulations. (348)
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Chapter 8 Notes - Chapter 8 Notes Bank reconciliation - The...

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