Solved

Match the Term and the Definition

Question 60

Matching

Match the term and the definition.There are more definitions than terms.

Premises:
1 Loan covenants
1 Restricted cash
1 Asset misappropriation
1 outstanding cheque
1 Time lags
1 Cash equivalents
1 SOX
1 NSF cheque
Responses:
Examples of this include deposits in transit and outstanding cheques.
Created by the U.S.Congress in response to Enron
Not available for general use but rather restricted for a specific purpose.
Physically locking up valuable assets.
When a cheque has been written on an account that does not have enough money to cover it.
When an employee has a means of committing fraud.
Short-term highly liquid investments purchased within 3 months of maturity.
Theft or embezzlement.
Lending agreements that include financial targets such as maintaining a certain level of assets.
When a cheque has been written but has not yet been recorded by the cheque writer's bank.

Correct Answer:

Examples of this include deposits in transit and outstanding cheques.
Created by the U.S.Congress in response to Enron
Not available for general use but rather restricted for a specific purpose.
Physically locking up valuable assets.
When a cheque has been written on an account that does not have enough money to cover it.
When an employee has a means of committing fraud.
Short-term highly liquid investments purchased within 3 months of maturity.
Theft or embezzlement.
Lending agreements that include financial targets such as maintaining a certain level of assets.
When a cheque has been written but has not yet been recorded by the cheque writer's bank.
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