The Accounting Cycle - Part 2 Flashcards

1
Q

What are the types of transactions in Quickbooks?

A

Sales Receipt
Invoice
Bank Deposit
Paying with Check
Credit Memo

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2
Q

What is a credit memo?

A

A transaction that reduces what the customer owes; in Quickbooks, it applies the credit to the oldest open invoice

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3
Q

What are the five types of adjustments

A

Deferrals
Accruals
Missing Transactions
Tax Adjustments
Depreciation

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4
Q

What is a deferral?

A

It is pushing the recognition of revenue to a future fiscal period or periods; when a company receives a payment from a customer in advance. Or company pays bill in advance.

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5
Q

What type of account is deferred Revenue?

A

It is considered Unearned Revenue

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6
Q

What are accruals?

A

It is when prepaid transactions are moved into the current period.

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