Principles of Auditing and Other Assurance Services, ch.14

Vendor's statement

A monthly statement prepared by a vendor (supplier) showing the beginning balance, charges during the month for goods or services,amounts collected, and endeng balance.

Consignment

A transfer of goods from the owner to another person who acts as the sales agent of the owner.

Trade accounts payable

Current liabilities arising from the purchase of goods and services from trade creditors, generally evidenced by invoices or statements received from the creditors.

Confirmation

Direct communication with vendors or suppliers to determine the amount of an account payable.

Accrued liabilities

Short-term obligations for services of a continuing nature that accumulate over time

Subsequent period

The time extending from the balance sheet date to the date of the auditors' report