Match the term with the correct definition
A The plan of organization and all the related methods and measures adopted within a business to safeguard its assets and enhance the accuracy and reliability of its accounting records.
B Law that forces companies to pay more attention to internal control.
C Company employees who evaluate on a continuous basis the effectiveness of the company's system of internal control.
D An expense account to record credit losses.
E Management establishes a percentage relationship between the amount of receivables and expected losses from uncollectible accounts.
F A method of accounting for bad debts that involves expensing accounts at the time they are determined to be uncollectible.
G A form of interest-bearing note payable issued by corporations, universities, and governmental agencies.
H A contractual arrangement giving the lessee temporary use of the property with continued ownership of the property by the lessor. Accounted for as a rental.
I Bonds that permit bondholders to convert them into common stock at their option.
J The amount stockholders paid to the corporation in exchange for shares of ownership.
K Contractual provisions that give it preference or priority over common stock in certain areas.
L Net income that a company retains in the business.
M A technique for evaluating financial statement data that expresses each item in a financial statement as a percent of a base amount.
N A comparison of the market price of each share of common stock to the earnings per share, computed as the market price of the stock divided by earnings per share.
O Events and transactions that meet two conditions: They are unusual in nature and infrequent in occurrence.
P Securities held for resale.
Q Securities not classified as trading securities or held-to-maturity securities.
R Securities for which the reporting enterprise has both the positive intent and ability to hold those securities to maturity.
S A lease in which the lessee obtains some ownership rights over the asset involved in the transaction, resulting in the recording of the asset as company property on its general ledger.
T An arrangement whereby a firm leases its own equipment, such as IBM leasing its own computers, thereby competing with an independent leasing company.
U The average time required for the cash invested in inventories to be converted into the cash ultimately collected on sales made to customers.
V An overall financial and operating plan, including budgets for all aspects of business operations and for all responsibility centers.
W A budget that can readily be revised to reflect budgeted amounts given the actual levels of activity (sales and production) achieved during the period. Makes use of cost-volume-profit relationships to restate the master budget for the achieved level of activity.
Direct Write-off Method
Bad Debts Expense
Internal control B
Price-Earnings (P-E) Ratio
Percentage of Receivables Basis
Sarbanes-Oxley Act of 2002 (SOX)
Securities available for sale:
Securities Held to Maturity
See attached file.
I had one term "left over" and one term used ...
A classic accounting exercise to help reinforce understanding of concepts. No detailed definitions or added instruction included with the matched items.