Leaming Objective: Ch6-CI.C, Al, PI-PS Match each of the following terms with the appropriate 14. 1. Principles of internal contrel -2. Cash Over and Short 3. Net method 4. Voucher 5. Bank reconciliation 6. Liquidity 7. Receiving report 8. Days' sales uncollected 9 Purchase order 10. Gross method A. A report that explains any differences between the checking account balance according to the depositors records and the balance reported on the bank statement B. An internal business document (or file) used to accumulate information to control cash disbursements and to ensure that the transaction is properly recorded. C. Principles requiring management to establish responsibility, maintain adequate records, insure asets eerform from custody of assets, divide responsibility for related transactions, apply technologkcal controls, and perfiom by t D. A measure of the liquidity of receivables computed by taking the current balance from custody of assets, divide responsibility for related transactions, apply technological controls, creda of receivables and dividing by the sales over the period, and then multiplying the quotient by 365 E. The ability of a company to pay for its near-term obligations. F. A method of recording purchases at the full invoice price without deducting amy cash discounts. G. A method of recording purchases at the invoice price less any cash discounts H. A document used by the purchasing department to place an order with a vendor I. An internal document used to report that ordered goods are received and to describe the quantity and condition. J. An income statement account used to record cash overages and cash shortages arising from missing receipts or errors. Accounts receivable information for specific customers is important because it reveals: A) How much each customer has purchased on credit B) How much each customer has paid C) How much each customer still owes. D) The basis for sending bills to customers E) All of the above. 35. Leaming Objective: Ch7-C2 36. The person who signs a note and promises to pay the principal and interest is the A) Maker. B) Payee. C) Holder. D) Receiver E) Owner. A promissory note: A) Is a short-term investment for the maker. B) Is a written promise to pay a specified amount of money at a certain date. C) Is a liability to the payee. D) Is another name for an installment receivable. E) Cannot be used in payment of an account receivable 37. A company receives a 10%, 90-day note for $1,500. The total interest due on the maturity date is A) S37.50 B) $150.00. C) S 75.00. D) S 50.00. E) S 87.50. Ch7-C2 38, 12