Flashcards
QBO Chapter 4 key terms
Cards in this deck (11)
- 1QBO SatNavyour satellite navigation for Quickbooks online, assisting you in navigating QBO
- 2Check registera record of all transactions affecting the checking account
- 3Money inMoney coming into the business must be recorded in QBO so there is a record and paper trail. Three main ways to use QBO to record money coming in are:
Customer Sales using Sales Receipts
Customer Sales using Invoices > Receive Payments
Bank Deposit - 4MONEY OUTA business needs to track all money out, including all cash paid out of the company’s Checking account. Examples of payments include purchases of inventory, office supplies, employee salaries, rent payments, and insurance payments.
Supporting documents (source documents) for payments include canceled checks, receipts, and paid invoices. These source documents provide proof that the transaction occurred; therefore, source documents should be kept on file for tax purposes. QBO permits us to add source documents as attachments.
Four main ways to use QBO to record money out include:
Expense
Check
Bill > Pay Bills
Purchase Order > Bill > Pay Bills - 5Bank reconciliationthe process of comparing, or reconciling, the bank statement with your accounting records for the Checking account.
- 6errorErrors can be either the bank’s error(s) or the company’s error(s)
- 7Timing differencesThis occurs when the company records an amount before the bank does or the bank records an amount before the company does.
- 8Deposits in transitDeposits the company has recorded but the bank has not.
- 9Outstanding checks.Checks the company has written and recorded but the bank has not recorded yet.
- 10Unrecorded charges.Charges that the bank has recorded on the bank statement but the company has not recorded in its accounting records yet. Unrecorded charges include service charges, loan payments, automatic withdrawals, and ATM withdrawals.
- 11Interest earned on the account.Interest the bank has recorded as earned but the company has not recorded yet
Information
- Description
- Accounting Information systems Quickbooks online chapter 4 key terms
- Created by
- Stephanie Poole
- Views
- 22
- Tags
- Rating