Professional Documents
Culture Documents
Terms Definitions
1. economic order quantity n. An inventory control system that seeks to minimize
the sum of ordering, carrying, and stockout costs.
2. materials requirements f. An inventory control system that triggers
planning (MRP) production based on forecasted sales.
3. Just-in-time (JIT) inventory e. An inventory control system that triggers
system production based upon actual sales.
4. purchase requisition g. A document only used internally to initiate the
purchase of materials, supplies, or services.
5. imprest fund b. The method used to maintain the cash balance in the
petty cash account.
6. purchase order a. A document that creates a legal obligation to buy
and pay for goods or services.
7. kickbacks s. A fraud in which a supplier pays a buyer or
purchasing agent in order to sell its products or
services.
8. procurement card r. A special purpose credit card used to purchase
supplies.
9. blanket purchase order p. An agreement to purchase set quantities at
specified intervals from a specific supplier.
10. evaluated receipts settlement h. A process for approving supplier invoices based on
(ERS) a two-way match of the receiving report and
purchase order.
11. disbursement voucher m. A document used to list each invoice being paid by
a check.
12. receiving report q. A document used to record the quantities and
condition of items delivered by a supplier.
13. debit memo d. A document used to authorize a reduction in
accounts payable when merchandise is returned to a
supplier.
14. vendor managed inventory o. A system whereby suppliers are granted access to
point-of-sale (POS) and inventory data in order to
automatically replenish inventory levels.
15. voucher package l. Combination of a purchase order, receiving report,
and supplier invoice that all relate to the same
transaction.
16. non-voucher system j. A method of maintaining accounts payable in which
each supplier invoice is tracked and paid for
separately.
17. voucher system k. A method of maintaining accounts payable which
generates one check to pay for a set of invoices
from the same supplier.
11. Wasted time and cost of returning unordered a. Only accept deliveries for which an approved
merchandise to suppliers. purchase order exists.
12. Accidental loss of purchasing data. n. Regular backup of the expenditure cycle
database.
13. Disclosure of sensitive supplier information j. Restrict access to the supplier master data.
(e.g., banking data).
Chapter 16 GL Cycle
1. journal voucher file d. the set of journal entries that updated the general
ledger
2. instance document k. a file that contains specific data values for a set of
XBRL elements for a specific time period or point in
time
3. XBRL element a. an individual financial statement item
4. Balanced Scorecard f. a multi-dimensional performance report
5. XBRL extension taxonomy l. a file containing a set of customized tags to define
new XBRL elements that are unique to a specific
organization
6. audit trail i. a detective control that can be used to trace changes
in general ledger account balances back to source
documents
7. XBRL taxonomy e. a set of files that defines XBRL elements and
specifies the relationships among them