Computerised accounting key terms

tomfaulkner
Flashcards by tomfaulkner, updated more than 1 year ago
tomfaulkner
Created by tomfaulkner over 7 years ago
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Accounts (Conputerised accounting) Flashcards on Computerised accounting key terms, created by tomfaulkner on 05/14/2013.
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Credit sale A sale made where payment is due at a later date
Payables (creditors) Suppliers to whom the business owes money
Purchases ledger The part of the accounting system where the supplier's accounts are kept
Purchases Items bought which will be turned into a product or be sold as part of day-to-day trading
Expenses Payments made which relate to the running of the business - also known as overheads
Capital items Items bought which the business intends to keep
Batch A group of documents, eg invoices or credit notes
Current account The 'everyday' bank account which handles routine receipts and payments
Cash payments Payments made straightaway
Credit payments Payments made at a later date following the issue of an invoice to a customer or by a supplier
Remittance advice A document that tells a business that a payment is being made
Cash sales Sales made where payment is immediate
Current account The 'everyday' bank account which handles routine receipts and payments
Tax codes A term used by Sage to refer to the rate of VAT which is applied to transactions: T1 refers to standard rate, T0 to the zero rate, T2 to VAT exempt items and T9 to transactions which do not involve VAT
Cash book The manual record which records money paid in and out of the bank account
Petty cash A float of cash kept in the office for making small purchases
Petty cash account An account used to record payments of small cash purchases from the office petty cash fund
Petty cash voucher The document which records and authorises a payment out of petty cash
Company credit card account An account used to record payments made on credit cards issued to employees to cover business expenses
Cash receipts account An account used to record cash receipts made by a business where the money is kept for a time by the business before it is paid into the bank
Recurring entry A bank payment or receipt which occurs on a regular basis and which is automated within the computer accounting program
Standing order / direct debit schedule A document which lists recurring payments and receipts with their due date
Trial balance A list of Nominal account balances set out in debit and credit columns, the totals of which should be the same
Audit trail A numbered list of transactions on the computer produced in order of input
Aged debtor analysis A list of customer balances which are split up according to the length of time they have been outstanding
Aged creditor analysis A list of supplier balances which are split up according to the length of time they have been outstanding
Activity report A list of transactions on individual Nominal, Customer and Supplier accounts
Bank reconciliation The process of checking the bank statement entries against the accounting records of an organisation and identifying the differences that exist between the two documents
Journal The part of the accounting system which enables you to make transfers from one nominal account to another, and to enter new balances
Double-entry The system of book-keeping which involves each transaction having two entries made - a debit and a credit; computer accounting program's (which are largely single entry systems) deal with the double entry automatically
Write off The removal of a Customer (or supplier) account balance from the accounting records
Bad debt A debt that is never likely to be paid and so will need to be written off
Returned cheque A cheque that has been paid into a bank account but has been returned unpaid by the bank either because of lack of funds, or because of some technical irregularity on the cheque
Hardware The computer equipment on which the computer programs run
Software The computer programs which enable the computer to work and carry out its functions
Intranet A linked network of computers within an organisation
Internet Computers linked up externally by phone line with other computers on the worldwide web (www)
Word processor A computer program which allows text to be entered and manipulated on screen
Database A computer program which acts as an electronic filing system, storing data so that it can be sorted, searched and organised efficiently
Record A set of information stored in a computer database, e.g a name and address
Field A part of a database record which contains a specific category of information, e.g a postcode
Spreadsheet A computer program which stores text and numbers on a grid system of columns and rows and enables calculations to be performed on the numbers
CSV Comma Separated Values is a special format of text used to transfer data from one computer program to another - the fields / pieces of data are separated by commas
Email management A program which enables the computer to send and receive emails and to organise messages sent and received
EDI Electronic Data Interchange (EDI) is a system which enables data and financial documents to be sent electronically from computer to computer -e.g from supermarket to supplier
Ledgers The books of the accounting system which contain individual accounts - the sales ledger, for example, contains the individual accounts of customers who buy on credit (they pay later)
Integrated system A computerised accounting system which links together all the ledgers and accounts so that a transaction on one account will always be mirrored in another account
Double-entry book-keeping The method of manual book-keeping from which the integrated system has been developed - it involves the making of two entries in the accounts for every financial transaction
Hard copy A paper document containing data - often a printout from a computer
Data export The transfer of data from one computer program to another
System password A code word used to allow an employee to 'log on' to access the computer accounting system
Software password A code word used to allow an employee to 'log on' to access a particular computer accounting program, such as Sage 50
Access rights The right of an employee to access specific areas of the computer accounting program
System date The date allocated by the operating system of the computer - normally the actual date
Program date The date which you can tell the computer accounting software to use as 'today's date'
Financial year The twelve month period used by the business to record it's financial transactions
Back - up To copy the computer data onto a separate storage medium in order to ensure that the data is not lost
Restore To copy the back-up data back onto the computer when the original data has been lost or corrupted
Corrupt data Data which has become unusable because it will not open, or print, or both
Virus A computer program introduced into the computer system which then disrupts or destroys the operation of the system
Data Protection Act The law which establishes the regulations for the protection of personal data held by organisations on computer (and paper-based) files
Wizard On-screen dialogue boxes in a Sage program which take you step-by-step through complex procedures
Sales ledger The accounts of customers to whom a business sells on credit - in sage this part of the accounting system is known as 'Customers'
Purchases ledger The accounts of suppliers from whom a business buys on credit - in Sage this part of the accounting system is known as 'Suppliers'
Nominal ledger The remaining accounts in the accounting system which are not Customers or Suppliers, e.g income, expenses, assets,'liabilities - in Sage this know as 'Nominal'
Chart of accounts The structure of the nominal accounts, which groups accounts into categories such as Sales, Purchases, Overheads ... And so on
Cash sale A sale where payment is immediate
Credit sale A sale where payment follows after an agreed period of time
Receivables (debtors) Customer who owe money to a business
Receivables (debtors) Customer who owe money to a business
Payables (creditors) Suppliers who are owed money by a business
Debtors control account The total of the balances of debtor's accounts
Creditors control account The total of the balances of creditor's accounts
Credit terms Discounts and extended payment periods allowed to customers who make purchases
Defaults Set of data on the computer which are automatically applied
Nominal ledger The remaining accounts in the accounting system which are not Customers or Suppliers, e.g income, expenses, assets, liabilities - in Sage this is known as 'Nominal'
Chart of accounts The structure of the nominal accounts, which groups accounts into categories such as Sales, Purchases, Overheads ... And so on
Categories Subdivisions of the chart of accounts (e.g Sales, Purchases) each of which is allocated a range of account numbers by the computer
Trial balance A list of the accounts of a business divided into two columns: Debits - mostly assets and expenses and drawings Credits - mostly income and liabilities and capital The two columns should have the same total, reflecting the workings of the double-entry book-keeping system
Credit sale A sale made where payment is due at a later date
Receivables (debtors) Customers who owe money to a business
Sales ledger The part of the accounting system where the customer accounts are kept - it records the accounts that are owed to the business
Purchase order The financial document which requests the supply of goods or services and specifies exactly what is required
Invoice The financial document which sets out the details of the goods sold or services provided, the amount owing and the date by which the amount is due
Credit note The financial document - normally issued when goods are returned - which reduces the amount owing by the customer
Batch A group of documents, e.g invoices or credit notes
Batch entry The input of a number of documents in a group
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