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Bookkeeping > Vocabulary > Flashcards

Flashcards in Vocabulary Deck (30):
1

Fiscal Year

An Accounting period used by businesses and organizations to budget, forecast, and report their finances

2

Account

The Place where financial entries of a similar nature are recorded

3

Chart of Accounts

The Collection of accounts that you use to track the flow of money in QB

4

Income

Money that customers pay your business in exchange for products or services

5

Expense

Money that your business spends on services or consumable goods

6

Cost of Goods Sold (COGS)

Direct costs involving the selling of the company's goods and services

7

Sole Proprietorship

Most common business structure

8

Assets

Everything the Co. Owns. Cash, Inventory, Buildings, equipment, vehicles

9

Liabilities

Everything the co. owes. Vendor bills, cc balance, bank loans

10

Equity

Claims owners have on the assets

11

Accounting equation

Assets=Liability+Equity

12

Balance Sheet

Business financial health. What your business owns and owes. Assets=Liability+Equity

13

Income Statement

Summarizes financial transactions for a particular time period Revenues-COGS-expenses=Profit (or loss)

14

Current Asset

Use in the next 12 months

15

Long-Term Asset

Lifespan of more than 12 months

16

Backup

A copy of your QB files and data saved to another location, ideally other than your computer hard drive

17

QBB

The file extension for Quickbooks Back up file

18

Portable files

Compressed version of your existing co file

19

QBM

The file extension for Quickbooks for portable co. file

20

Accountants Copy File

Copy of co. file to give your accountant, and you are still able to work in the current file at the same time

21

QBX

The file extension for accountants copy file

22

Remote Access

A way to remotely access QB via the internet. Must use 3rd party service

23

Multiple users

Number of licenses that you purchased

24

Multi-User Mode

If you want to have multiple users access the file at the same time

25

IIF File

The file extension for a file exported from QB

26

Seperation of Duties

Assigning responsibility for the custody of assets to different people to prevent theft/fraud

27

Administrator

A QB user who can access all areas of the co. file and make any changes

28

Internal Controls

A system for safeguarding assets in a business

29

Closing Date

The date that you close the books for a particular accounting period

30

Condense Data Process

Replaces transactions with summary entries