QBO Chapter 10 Important Terms

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Business/Economics Flashcards on QBO Chapter 10 Important Terms, created by Joel Johnson on 11/26/2022.
Joel Johnson
Flashcards by Joel Johnson, updated 2 months ago
Joel Johnson
Created by Joel Johnson 2 months ago
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Question Answer
Chart of Accounts A list of all accounts used to accumulate information about assets, liabilities, owners' equity, revenues, and expenses.
Transactions During the accounting period, record transactions with customers, vendors, employees, and owners.
Trial Balance A Trial balance is also referred to as an unadjusted Trial Balance because it is prepared before adjustments. A Trial Balance lists each account and the account balance at the end of the accounting period.
Adjustments Adjustments are at the end of the accounting period before preparing financial statements, make any adjustments necessary to bring the accounts up to date.
Adjusted Trial Balance Prepared after adjustments to verify that the accounting system still balances. If additional account detail is required, print the general ledger.
Financial Reports Prepare financial statements for external and internal users.
Cash Basis A sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid.
Accrual Basis Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.
Assets What a company owns. On the Balance Sheet, assets are recorded at their historical cost, the amount we paid for the asset when we purchased it.
Liabilbities What a company owes. Liabilities are obligations that include amounts owed to vendors.
Owner's Equity The residual that is left after liabilities are satisfied. Also called net worth, owners' equity is increased by owners' contributions and net income. Owners' equity is decreased by owners' withdrawals and net losses.
Cash Flows from Operating Activities Cash inflows and outflows related to the company's primary business, such as cash flows from sales and operating expenses.
Cash Flows from Investing Activities Cas inflows and outflows related to acquisition and disposal of long-term assets.
Cash Flows from Financing Activities Cash inflows and outflows to and from investors and creditors.
Management Reports Prepared as needed to provide management with information for making operating and business decisions.
Who Owes You Reports Examples of this category of reports include Accounts Receivable Aging and Open Invoices.
Sales and Customers Reports Includes Income by Customer and Sales by Product/Service reports
What you Owe Reports Accounts Payable Aging and Unpaid Bills
Expenses and Vendors Reports Open Purchase Orders and Purchases by Product/Service.
For My Account Reports Trial Balance, Journal, and General Ledger reports. Although the Audit log appears in the QBO Business Overview report category, typically, it could be considered a report used by an accountant.
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