Accounts Payable (Flashcards)

This principle of internal control requires that more than one person be involved in certain transactions or procedures so that the opportunity for misappropriating assets is reduced.

This term is used to indicate a company or person that supplies goods and/or services to an organization.

This discount of 1% or 2% is offered by some vendors if their invoices are paid within 10 days instead of 30 days.

This U.S. Internal Revenue Service form must be issued to nonemployees who provided services and received $600 or more in a calendar year.

This multi-copy form is prepared by a company to specify the items being ordered and the quantity, price, terms, and other info. It is one of the documents in the three-way match.

This document or computer entry indicates the description and quantity of goods received by a company. It is one of the documents in the three-way match.

This is another name for a supplier’s sales invoice. It is one of the documents in the three-way match.

This term indicates that the ownership of goods will transfer to the buyer when the goods reach the buyer’s location.

This term indicates that the ownership of goods will transfer to the buyer when the goods leave the seller’s warehouse.

These expenses have occurred but have not yet been paid or recorded in the Accounts Payable account.

This balance sheet classification is used for obligations that are due within one year of the date of the balance sheet (or within one year of the operating cycle, if it is longer than one year).

This name is sometimes used instead of accounts payable. It is also used to report the combination of accounts payable and notes payable due to vendors.

This reduction to a distributor’s published price will vary according to the customer’s annual volume of purchases.

This early payment discount indicates that the net amount (after any returns or allowances) is due within 30 days. However, 2% can be deducted if it is paid within 10 days.

This early payment discount indicates that the net amount (after any returns or allowances) is due within 30 days. However, 1% can be deducted if it is paid within 10 days.

This name is associated with a person who performs a service but is not an employee of the company. If the person is paid at least $600 in a calendar year, the company will likely be required to issue a Form 1099.

This refers to the procedures that are designed to safeguard an organization’s assets. One example is the segregation of duties.

This computer file contains a company’s pertinent information for each authorized supplier.

This term refers to an invoice that is not completely paid or settled.

This document is used in some accounts payable departments to standardize and enhance a company’s internal control of payments to its vendors.

This IRS form is used by a company to request an independent contractor’s taxpayer identification number.

These journal entries are likely made at the end of an accounting period to record expenses and liabilities which have been incurred but are not yet recorded in Accounts Payable.

This type of entry is likely recorded on the first day of the accounting period following an accrual-type adjusting entry in order to avoid double-counting an accrued amount.

This tax is usually required when a buyer has not paid a sales tax to a supplier for goods or services that are subject to a sales tax.

This listing of available general ledger accounts does not contain amounts.

This report is issued by a company’s supplier to indicate the supplier’s invoices and related amounts that the company has not yet paid.

This number is issued by the U.S. Internal Revenue Service (IRS) and is used by a company on a variety of its tax related documents.