Accounting

Question 1

1099 code

Answer 1

corresponding box on the 1099 form that our data must populate

Question 2

ACH

Answer 2

automated clearing house

Question 3

Accrual Basis Accounting

Answer 3

revenue is earned when the time is worked, and expenses are recognized when incurred

Question 4

Advanced Cost

Answer 4

when a firm pays for something BEFORE being paid by the client

Question 5

AP

Answer 5

accounts payable

Question 6

AP Clerk

Answer 6

handles tasks related to AP (creates vendors, enters payables, pays invoices)

Question 7

Asset

Answer 7

items owned by the firm (cash, real estate, furniture, pc, AR - Balance Sheet account)

Question 8

Batch

Answer 8

group of checks to be paid

Question 9

Billing Clerk

Answer 9

handles everything related to billing (generate BIMs, time/cost edits, generate bills, apply cash)

Question 10

Billing Cycle

Answer 10

how frequent firms bill their clients

Question 11

BIM

Answer 11

Billing Information Memo

Question 12

Cash Basis Accounting

Answer 12

revenue recognized when invoices are paid; expenses recognized when bill is paid

Question 13

Contra-Asset

Answer 13

negative asset account used to reduce the balance in the associated asset account

Question 14

Credit

Answer 14

increases revenue, equity, and liability account, while decreasing asset and expense accounts

Question 15

Debit

Answer 15

increase asset and expense account, while reducing liability, income, and equity accounts

Question 16

Deductible Billing

Answer 16

one party pays up to a certain amount, and remaining payments are made by someone else

Question 17

Double Entry Accounting

Answer 17

recording each transaction into at least two accounts (debit/credit to one or more accounts)

Question 18

Equity

Answer 18

assets minus liabilities (Balance Sheet account)

Question 19

Expenses

Answer 19

cost of operation a company incurs to generate revenue (Income Statement account)

Question 20

GL

Answer 20

General Ledger (detail of all transactions)

Question 21

Group

Answer 21

grouping of vouchers

Question 22

Hard Cost

Answer 22

costs that can be directly tied/linked to client/matter

Question 23

Income/Revenue

Answer 23

money earned (Income Statement account)

Question 24

Liability

Answer 24

items owed by the firm (payables, trust/retainer money, unapplied cash - Balance Sheet account)

Question 25

Modified Cash Accounting

Answer 25

revenue recognized upon collection, but some expenses recognized when booked in as payables

Question 26

Multi Payor

Question 27

Narrative

Answer 27

explanation of billable hours

Question 28

Net Income (Profit)

Answer 28

income minus expenses

Question 29

P an L

Answer 29

profit and loss (Income Statement account)

Question 30

Pay When Paid

Answer 30

firm pays something/someone after being paid by client

Question 31

Reconciliation

Answer 31

balancing/making sure GL matches

Question 32

Single Payor

Answer 32

one party pays bill

Question 33

Soft Cost

Answer 33

shared costs not linked to a specific client/matter

Question 34

Suspense Account

Answer 34

holding account

Question 35

Tax Draw Check

Answer 35

firm cuts attorney a check to pay their taxes

Question 36

Trial Balance

Answer 36

list of all GL accounts

Question 37

Unapplied Cash

Answer 37

client overpayments

Question 38

Vendor

Answer 38

anyone the firm pays

Question 39

Voucher

Answer 39

IOU/unpaid bill

Question 40

WIP

Answer 40

work in progress