Final Exam Flashcards
1
Q
Revenue Cycle
A
Set of recurring business activities and related information processing operation associated with providing goods and services to customers and collecting cash in payment for those sales
2
Q
Sales Order Entry
A
First Basic Revenue Cycle Activity
3
Q
Shipping
A
Second Basic Revenue Cycle Activity
4
Q
Billing
A
Third Basic Revenue Cycle Activity
5
Q
Cash Collections
A
Fourth Basic Revenue Cycle Activity
6
Q
Sales Order
A
Document created during sales order entry listing the item numbers, quantities, prices, and terms of the sale
7
Q
Electronic Data Interchange (EDI)
A
The use of computerized communications and standard coding scheme to submit business documents electronically in a format that can be automatically documented
8
Q
Credit limit
A
Max allowable credit account balance for each customer (based on credit history and ability to pay)
9
Q
Accounts receivable aging schedule
A
report listing customer account balance by length of time outstanding
10
Q
back order
A
a document authorizing the purchase or production of items that is created when there is insufficient product to meet a customer order
11
Q
picking ticket
A
A document listing the items and quantities ordered and authorizing the inventory control function to release that merchandise to the shipping dept.
12
Q
customer relationship management (CRM) systems
A
Software that organizes customer information in a manner that facilitates efficient and personalized service
13
Q
packing slip
A
Document that lists quantity and description of all items included in a shipment
14
Q
bill of lading
A
legal contract that defines responsibility for goods while they are in transit
15
Q
Sales invoice
A
A document that notifies a customer of the amount of sale and where to send the payment
16
Q
open-invoice method
A
Where customers pay according to each invoice
17
Q
remittance advice
A
Copy of the sales invoice that is returned with a customer’s payment that indicates the invoices, statements, or other items being paid
18
Q
balance forward method
A
Method of maintaining accounts receivable where customers usually pay according to an amount on a monthly statement. Remittances are paid to a total account balance.
19
Q
monthly statement
A
Lists all transactions that occurred the past month and informing customers of their current account balance
20
Q
cycle billing
A
Produces monthly statements for subsets of customers at different times
21
Q
credit memo
A
Document, approved by credit manager, authorizing the billing department to credit a customer’s account
22
Q
remittance list
A
Document that lists all names and amounts of all customer payments received by mail.
23
Q
lockbox
A
A postal address to which customers send their payments. (The bank picks up the checks from the address)
24
Q
electronic lockbox
A
A lockbox arrangement in which the bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives payment
25
electronic funds transfer (EFT)
Transfer funds through online banking software
26
financial electronic data interchange (FEDI)
Combination of EFT and EDI that enables both remittance data and funds transfer instructions to be included in one electronic package
27
universal payment identification code (UPI)
A number that enables customers to remit payments via an ACH credit without requiring the seller to divulge information about its bank account
28
Cash flow budget
A budget that shows projected cash inflows and outflows for a specific period
29
Expenditure cycle
activities and related data processing operations associated with the purchase of and payment for goods and services
30
Ordering
First Basic Expenditure Cycle Activity
31
Receiving
Second Basic Expenditure Cycle Activity
32
Approve Supplier Invoices
Third Basic Expenditure Cycle Activity
33
Cash Disbursements
Fourth Basic Expenditure Cycle Activity
34
Economic order quantity (EOQ)
optimal order size to minimize the sum of ordering, carrying, and stockout costs
35
reorder point
Specifies the number to which the inventory balance must fall before and order to replenish stock is initiated
36
materials requisition planning
Utilizing inventory forecasting as an attempt to reducing inventory levels
37
just-in-time (JIT) inventory
Minimizes of virtually eliminates inventories by purchasing and producing good only in response to actual, rather than forecasted, sales
38
purchase requisition
Document that identifies requisitioner, specifies delivery location, date needed; identifies the item numbers, descriptions, quantity, and price of each item requested; may suggest a supplier
39
purchase order
Document that formally requests a supplier to sell and deliver specified products at designated prices. Also a promise to pay and becomes a contract the supplier accepts.
40
blanket purchase order
A commitment to purchase specified items at designated prices from a particular supplier for a set time period, often one year
41
vendor-managed inventory
Practice in which the manufacturers and distributors manage a retail customer's inventory using EDI. Supplier can access the customer's point-of-sale and replenishes stock when needed
42
kickbacks
gifts given by suppliers to purchasing agents to influence their choice of suppliers
43
receiving report
A document that records details about the data received, shipper, supplier, quantity received
44
debit memo
a document used to record a reduction to the balance due to a supplier
45
voucher package
set of documents used to authorize payment to a supplier. Consists of a purchase order, receiving report, and supplier invoice
46
nonvoucher system
A method for processing accounts payable in which each approved invoice is posted to individual supplier records in the accounts payable file and is then stored in an open invoice file.
47
voucher system
A method for processing accounts payable in which a disbursement voucher is prepared instead of posting invoices to supplier records in the accounts payable subsidiary ledger. The disbursement voucher identifies the supplier, lists the outstanding invoices, and indicates the net amount to be paid after deducting any applicable discounts and allowances
48
disbursement voucher
A document that identities the supplier, lists the outstanding invoices, and indicates the net amount to be paid after deducting any applicable discounts and allowances
49
Evaluated receipt settlement (ERS)
An invoiceless approach to accounts payable that replaces the tree-way matching process (supplier invoice, receiving report, and purchase order) with a two-way match of the purchase order and receiving report
50
procurement card
A corporate credit card that employees can use only at designated suppliers to purchase specific kinds of items
51
imprest fund
petty cash. 1) has a fixed amount i.e. 100 2) vouchers are required for every disbursement. At all times the sum of cash plush vouchers should equal the fixed amount
52
Production cycle
The recurring set of business activities and related data processing operations associated with the manufacture of products
53
Product Design
First Basic Production Cycle Activity
54
Planning and Scheduling
Second Basic Production Cycle Activity
55
Production Operations
Third Basic Production Cycle Activity
56
Cost Accounting
Fourth Basic Production Cycle Activity
57
bill of materials
A document that specifies the part number, description, and quantity of each component used in a product
58
operations list
A document that specifies the sequence of steps to follow in making a product, which equipment to use, and how long each step should take
59
manufacturing resource planning (MRP-II)
Extension of materials resource planning that seeks to balance existing production capacity and raw materials needs to meet forecasted sales demands. Also called push manufacturing because goods are produced in expectation of customer demand
60
lean manufacturing
Extends the principles of just-in-time inventory systems to the entire production process to minimize of eliminate inventories of raw materials, work in process, and finished goods. Often referred to as pull manufacturing because goods are produced in response to customer demand
61
master production schedule (MPS)
Specifies how much of each product is to be produced during the planning period and when that production should occur
62
production order
A document authorizing the manufacture of a specified quantity of a particular product
63
materials requisition
Authorizes the removal of the necessary quantity of raw materials from the storeroom
64
move tickets
Documents that identify the internal transfer of parts, the location to which they are transferred, and the time of the transfer
65
computer-integrated manufacturing (CIM)
A manufacturing approach in which much of the manufacturing process is performed and monitored by computerized equipment, in part through the use of robotics and real-time data collection of manufacturing activities
66
request for proposal
request by an organization or department for supplier to bid to supply a fixed asset that possesses specific characteristics (related to ordering machinery and equipment for production)
67
Job-order costing
A cost system that assigns costs to specific production batches or jobs
68
process costing
A cos system that assigns costs to each process, or work center, in the production cycle, and then calculates the average cost for all units produced
69
job-time ticket
A document used to collect data about labor activity by recording the amount of time a worker spent on each specified job task
70
manufacturing overhead
All manufacturing costs that are not economically feasible to trace directly to the specific jobs or processes
71
activity-based costing (ABC)
A cost system designed to trace costs to the activities that create them
72
cost driver
Anything that has a cause-and-effect relationship to costs
73
Throughput
A measure of production efficiency representing the number of "good" units produced in a given period of time
74
human resource management (MRM)/payroll cycle
The business activities and data processing operations associated with effectively managing the employee workforce
75
Knowledge Management Systems
Software that stores and organizes expertise possessed by individual employees so that the knowledge can be shared and used by others
76
Update Master Data
First Basic HR/payroll Cycle Activity
77
Validate Time & Attendance Data
Second Basic HR/payroll Cycle Activity
78
Prepare payroll
Third Basic HR/payroll Cycle Activity
79
Disburse payroll
Fourth Basic HR/payroll Cycle Activity
80
Disburse taxes and Misc. Deductions
Fifth Basic HR/payroll Cycle Activity
81
time card
a document that records the employee's arrival and departure times for each work shift
82
time sheet
Data entry screen used by salaried professionals to record how much time was spent performing various tasks for specific clients
83
payroll register
A listing of payroll data for each employee for a payroll period
84
deduction register
A report listing the miscellaneous voluntary deductions for each employee
85
earnings statement
A report listing the amount of gross pay, deductions, and net pay for the current period and the year-to-date totals for each category
86
payroll clearing account
A general ledger account used to check the accuracy and completeness of recording payroll costs and their subsequent allocation to appropriate cost centers
87
flexible benefits plans
a plan under which each employee receives some minimum coverage in medical insurance and pension contributions, plus additional benefits (vacation time etc.)
88
payroll service bureau
An organization that maintains the payroll master file for each of its clients and performs their payroll processing activities for a fee
89
professional employer organization (PEO)
An organization that processes payroll and also provides human resource management services such as employee benefit design and administration
90
Update General Ledger
First Basic General Ledger and Reporting Cycle Activity
91
Post Adjusting Entries
Second Basic General Ledger and Reporting Cycle Activity
92
Prepare Financial Statements
Third Basic General Ledger and Reporting Cycle Activity
93
Produce Managerial Reports
Fourth Basic General Ledger and Reporting Cycle Activity
94
journal voucher file
A file that stores all journal entries used to update the general ledger
95
trial balance
A report listing the balances of all general ledger accounts
96
audit trail
A path that allows a transaction to be traced through a data processing system from point of origin to output or backwards from output to point of origin
97
eXtensible Business Reporting Language (XBRL)
a variant of XML specifically designed for use in communication the content of financial data
98
instance document
An XBRL file that contains tagged data
99
element
A specific data item in an XBLR instance document, such as a financial statement line item
100
taxonomy
A set of XBLR files that defines elements and the relationships among them
101
scheme
An XBLR file that defines every element that appears in a specific instance document
102
linkbases
One or more XBLR files that define the relationships among elements found in a specific instance document
103
style sheet
An XBLR file that provides instructions on how to display (render) an instance document on either a computer screen or printed report
104
extension taxonomy
A set of custom XBLR tags to define elements unique to the reporting organization that are not part of the standard generally accepted taxonomies for that industry
105
Responsibility Accounting
A system of reporting financial results on the basis of managerial responsibilities within an organization
106
flexible budget
A budget in which the amounts are stated in terms of formula based upon actual level of activity
107
balanced scorecard
A management report that measure the four dimensions of performance: financial, internal operations, innovation and learning, and customer perspectives of the organization
