Receipts and Payments (Ch 6) Flashcards
(16 cards)
What is a receivable (customer) statement?
A statement that shows all the invoices and credit notes that have been issued to a particular credit customer for that month, together with any amounts outstanding from previous months. The statement also shows any payments received from the customer.
What is a payable (supplier) statement?
A statement that shows all the invoices and credit notes that have been received from a aprticular credit supplier for that month, together with any amounts outstanding from previous month. The statement also details any payments sent to the credit supplier.
What is a bank reconcilliation?
The process of matching the balances in a businesses accoutning records to the corresponding information on a bank statement.
What is a bank statement?
A document that is sent by the bank to the account holder, usually on a monthly basis, summarising the transactions on an account during the month.
What is cash?
Money in coins or notes.
What is a credit card?
A plastic card that is issued by a bank allowing the holder to purchase goods or services on credit.
What is a debit card?
A plastic card that is issued by a bank allowing the holder to transfer money electronically from their bank account when making a purchase of goods or services.
What is a cheque?
An order to a bank written on a specially printed form that states a sum to be paid from the drawer’s account.
What is BACS?
Bankers’ Automated Clearing Services is an electronic system to make payments directly from one bank to another. They are mainly used for direct debits and direct credits. Transfers usually take 3 working days.
What is faster payment?
Faster payment service (FPS) is an electronic system which makes payments directly from one back account to another. Transfers typically take a few seconds.
What is a standing order?
An instruction to a bank by an account holder to make regular fixed payments to a particular person or organisation.
What is direct debit?
An instruction to a bank by an account holder, authorising the organisation the account holder wants to pay to collect varying amounts from the account. The payee must give advanced notice of the amounts and dates of collection.
What is remittance advice?
A blank document that the customer completes when making a payment to the supplier. It shows the total payment being made and which invoices (less credit notes) the payment is paying off.
What is the cash book?
A cash b ook is a record of cash receipts and payments that conforms to the double entry system.
An analysed cash book is a cash book with additional columns for analysing principal sources and payemnts of cash.
What is petty cash?
Petty cash is the small amount of cash that most businesses hold in order to make small cash payments, such as payemnts for coffee and milk for the staff kitchen.
