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Match Each Definition to Its Term

Question 126

Matching

Match each definition to its term

Premises:
An asset such as cash that can be readily used to settle short-term obligations
Currency, coins and amounts on deposit in bank checking and many savings accounts
An internal document listing the goods needed by a department and requesting that it be purchased
Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change
An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale
All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies
The buyer or purchaser of goods or services
Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment
A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient
The seller of goods or services
Responses:
Cash
Cash equivalent
Check
Outstanding checks
Liquid asset
Internal control system
Vendee
Vendor
Purchase requisition
Invoice

Correct Answer:

An asset such as cash that can be readily used to settle short-term obligations
Currency, coins and amounts on deposit in bank checking and many savings accounts
An internal document listing the goods needed by a department and requesting that it be purchased
Short-term, highly liquid investments that are readily convertible to known cash amount and are sufficiently close to their maturity date so that the market value is not sensitive to interest rate change
An itemized statement of goods prepared by the vendor that lists the customer's name, the items sold, the sales price of each item and the terms of sale
All the policies and procedures managers use to protect assets, ensure reliable accounting, promote efficient operations and urge adherence to company policies
The buyer or purchaser of goods or services
Checks written by the depositor, deducted on the depositor's records, sent to the payees but not yet received by the bank for payment
A document signed by the depositor instructing the bank to pay a specified amount to a designated recipient
The seller of goods or services
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