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Sells services rather than physical goods.
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Sells goods that have been obtained from a supplier.
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Sells goods that it has made itself.
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Methods to protect against theft of assets, enhance the reliability of accounting information, promote efficient and effective operations, and ensure compliance with applicable laws and regulations.
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An internal control designed into the accounting system to prevent an employee from making a mistake or committing a dishonest act as part of one assigned duty, and then also covering it up through another assigned duty.
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A process for approving and documenting all purchases and payments on account.
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A process that controls the amount paid to others by limiting the total amount of money available for making payments to others.
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An internal report prepared to verify the accuracy of both the bank statement and the cash accounts of a business or individual.
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Another name for bounced cheques. They occur when the cheque writer does not have sufficient funds to cover the amount of the cheque.
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Money or any instrument that banks will accept for deposit and immediate credit to a company’s account.
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Short-term, highly liquid investments purchased within three months of maturity.
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A term of sale indicating that goods are owned by the customer the moment they leave the seller’s premises.
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A term of sale indicating that goods are owned by the seller until they are delivered to the customer.
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Refunds and price reductions given to customers after goods have been sold and found unsatisfactory.
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A sales price reduction given to customers for prompt payment of their account balance.
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Presents important subtotals, such as gross profit, to help distinguish core operating results from other, less significant items that affect net income. Gross profit (also called gross margin or simply margin): Net sales minus cost of goods sold. It is a subtotal, not an account.
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A ratio indicating the percentage of profit earned on each dollar of sales, after considering the cost of products sold.
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