QUICKBOOKS Flashcards
ABA transit number
The number that identifies the bank against which a check is drawn. Every check has an one, usually located in the top-right corner. It identifies the bank’s location and the bank’s name.
ABC (activity-based costing) management
An approach to cost accounting that tries to more accurately assign overhead costs and more precisely measure the profits of a firm’s products, services, and business units. Refer to Book 4, Chapter 4 for a more complete discussion.
account
The record of transactions in a checking, savings, securities, trust, or charge account, including the accountant’s up-to-date balance.
account number
The number that identifies the holder of an account. All accounts must have an account number.
Accountant’s copy
Allows an accountant to review/edit a client’s company file while at the same time the client can continue using and updating the file at his or her location.
accountant’s opinion
The results of an audit of a company’s records and books.
accrual basis
An accounting method in which income gets recorded as it’s earned (typically, when you prepare an invoice) and expenses are recorded as they occur (typically, when you receive an invoice).
accrued interest
Interest earned on a bond of certificate of deposit but paid at some future date, such as when the bond or certificate of deposit is sold.
ad valorem
Latin for “to the value.” Sales and property taxes are calculated ______, as a percentage of the property value or the thing being sold.
adjuster
The insurance company representative who decides how much insurance settlements should be.
affidavit
A signed statement promising that you will fulfill an obligation. The term means “has pledged his faith” in Latin.
altered check
A check whose signature, date, payee name, or amount has been changed or erased. Banks can refuse to honor these.
alternative minimum tax
A flat-rate tax that trusts, corporations, and individuals must pay, regardless of how much or how little tax they owe. This ensures that individuals and companies pay at least some tax.
Americans With Disabilities Act
Prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communication, and governmental activities. Also establishes requirements for telecommunications relay services.
amortization
The gradual paying off of a debt or a loan.
amortization schedule
A schedule for making payments on a mortgage. The schedule shows the number of payments, when payments are due, how much of each payment goes toward the principal and how much goes toward paying interest, and the declining amount of money owed on the loan as payments are made.
annual cap
A percentage rate above which payments on an adjustable-rate mortgage can’t rise, no matter how much interest rates rise.
annual percentage rate (APR)
The cost of a loan, expressed as a percentage of the amount of the loan.
annual percentage yield (APY)
The amount of interest income that an account will earn in a year, expressed as a percentage rate.
annual report
A report showing the financial status of a corporation. Public corporations are required to issue annual reports to their shareholders. Smaller firms typically don’t issue these.
arbitration
Submitting a dispute to a third party for settlement instead of to a court of law. If the ______ is “binding,” the parties involved are required to agree to the settlement.
arm’s-length transaction
A transaction made between a buyer and seller who have no relationship with each other. Transactions made between subsidiary companies of the same parent company aren’t arm’s-length transactions because the companies may be acting in the interest of a parent company instead of in their own interest.
assessed valuation
For tax purposes, the value of a property. Usually, property taxes are paid as a percentage of the _____ of the property.
assessment
The amount charged, such as for property taxes.