Chapter 12, Accounting & Sage 50 Accounting Terminology - Sage 50

Question 1

This could be due to a deposit being taken to the bank late in the dat & the banke

Answer 1

A basic definition used in the context of this text, a financial institution that holds amounts of money for personal or commercial use.

Question 2

Bank Reconciliation

Answer 2

The process of determining & processing the differences in the company bank account(s) as shown in the company’s records, & the balance as shown on the bank statement.

Question 3

Cancelled Cheque

Answer 3

A client’s cheque that has been cashed by the bank & deducted from the client’s bank account.

Question 4

Cash

Answer 4

In business terms, this refers to actual cash, cheque or credit card payment.

Question 5

NSF

Answer 5

Not Sufficient Funds.

The customer did not have enough money in the bank account to allow the bank to pay the cheque.

Question 6

Outstanding Cheque

Answer 6

Cheque issued by the company and recorded in the General Ledger, but has not been cashed by the bank by the statement date.

Question 7

Outstanding Deposits

Answer 7

Deposits recorded in the company General Ledger that have not been deposited (credited) by the bank into the customer’s account by the statement date. This could be due to a deposit being taken to the bank late in the day & the bank recording the deposit on the next day, or a deposit processed in the books but not yet taken to the bank.

Question 8

Reconciliation

Answer 8

The difference between the bank statement & the General Ledger bank account.

The difference may be from bank errors or from errors in processing transactions in Sage 50 Accounting.