Accounting Test 2 (Chapters 5-7)

Accounts Payable (AP) definition

• The total of all invoices that are due and payable in an operating at any point in time

• The steps in the payment process that are supported by verifiable documents or other tangible proof

• An arrangement with an insurer in which, for a fee, the insurance company guarantees payment to an operation for a financial loss caused by the actions of the specific covered employee

• a written record of a proposed adjustment to a delivery invoice

Aging Schedule definition

• A fund used in case of an emergency and for small-dollar purchases

• A machine that records guest purchases as well as other important operating data

• A chart that shows the age of all receivables not yet paid

• The process of removing cash from a cash register during the hours of operation to secure the cash in a safe

Bleeding definition

• A situation where there is less money on hand in the cash drawer than is indicated by the sales report

• The process of removing cash from a cash register during the hours of operation to secure the cash in a safe

• A situation where there is more money on hand in the cash drawer than is indicated by the sales report.

• The amount of money initially placed in the cash drawer

Cash definition

• The currency and coins guests use to pay their bills

• A credit card or debit card issued by a bank or other financial institution

• a system of assigning actual costs listed on invoices to predetermined cost areas

• A document used by vendors to indicate products, including quantities and prices, that are delivered to a restaurant or foodservice operation

Payment Card definition

• A comparison made to confirm that the money, checks, and credit card receipts in the cash drawer are equal to the recorded sales for a particular time period, less the amount of the opening cash bank

• A list of all of a guest's purchased items and their costs added together, before sales tax is added

• An arrangement with an insurer in which, for a fee, the insurance company guarantees payment to an operation for a financial loss caused by the actions of the specific covered employe

• A credit card or debit card issued by a bank or other financial institution

Petty Cash definition

• An arrangement whereby a customer is allowed to buy products and services on credit

• The act of stealing financial assets, including cash, from a business

• A fund used in case of an emergency and for small-dollar purchases

• A numbered form that has space to record the information about a payment, including the date of the payment, the check number, and the amount and recipient of the check

Petty Cash Voucher definition

• A document used to record information about the petty cash purchase

• Product spoilage, waste, or theft of inventory

• The amount of money that is spent for employee wages, both fixed and variable

• The cost of payroll plus all other labor-related costs, including FICA, employer-paid health insurance premiums, vacation pay, sick leave, and so on

Point-of-Sale (POS) System definition

• A service-related fee assessed and retained by an operation

• A list of all of a guest's purchased items and their costs added together, before sales tax is added

• A machine that records guest purchases as well as other important operating data

• Those amounts due to the operation from others, usually customers and clients

Reconciliation definition

• The steps in the payment process that are supported by verifiable documents or other tangible proof

• A comparison made to confirm that the money, checks, and credit card receipts in the cash drawer are equal to the recorded sales for a particular time period, less the amount of the opening cash bank

• The act of stealing financial assets, including cash, from a business

• An arrangement whereby a customer is allowed to buy products and services on credit

Secret Shopper definition

• The currency and coins guests use to pay their bills

• The difference between the sales report and the actual cash count when there are overages or shortages

• A formal, detailed, and written request for payment, commonly called a bill

• A company that sends hired customers into an establishment to check the service level of employees