38161268
Description
Flashcards by Stephanie Poole, updated more than 1 year ago
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Created by Stephanie Poole
over 1 year ago
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| Question | Answer |
| VENDORS: Purchase Order | to record our order of products from vendors. The purchase order is a record of the products and quantities we ordered |
| VENDORS: Bill | to record our obligation to pay the vendor for the products (Accounts Payable). Match vendor’s bill with our purchase order to verify quantities and amounts are correct. |
| VENDORS: Pay Bills | to pay vendor bills for products received. |
| CUSTOMERS: Invoice | to record resale of product to customer and the customer’s promise to pay later (Accounts Receivable). |
| CUSTOMERS: Receive Payment | to record collection of the customer’s payment. |
| CUSTOMERS: Bank Deposit | to record customer’s payment in the bank account. (Bank Deposit is used only if Undeposited Funds is selected on the Receive Payment form.) |
| Inventory | Products that we buy for which we track quantities, such as dog hammocks that Mookie The Beagle Concierge buys to resell. Inventory items are products that a business purchases, holds as inventory, and then resells to customers |
| Non-inventory | Products that we buy but we don’t need to track the quantity of the product, such as pens used for office supplies. |
| Service. | Services that we buy from vendors, such as legal services. |
| Bundle | A bundle is a collection of products and services that we sell together as a bundle. |
| Purchase Order | a record of an order to purchase products from a vendor. The Purchase Order lists the details of the purchase, such as date, vendor, specific items ordered, and quantity of each item ordered. |
| Invoice | used to record sales when the customer will pay later. An Invoice contains detailed information about the products and services provided to a customer. |
| 3-way match | Another principle of internal control is to use a 3-way match when ordering, receiving, and paying for inventory. 3-way match compares: What was ordered? What was received? What was billed? Basically, we want to compare what we ordered with what we received, and what we were billed. These three amounts should agree so that we are not paying for more than what we ordered or received. |
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