The Accounting Cycle - Part 2 Flashcards
What are the types of transactions in Quickbooks?
Sales Receipt
Invoice
Bank Deposit
Paying with Check
Credit Memo
What is a credit memo?
A transaction that reduces what the customer owes; in Quickbooks, it applies the credit to the oldest open invoice
What are the five types of adjustments
Deferrals
Accruals
Missing Transactions
Tax Adjustments
Depreciation
What is a deferral?
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.
What type of account is deferred Revenue?
It is considered Unearned Revenue
What are accruals?
It is when prepaid transactions are moved into the current period.