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
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
3
Q
What are the five types of adjustments
A
Deferrals
Accruals
Missing Transactions
Tax Adjustments
Depreciation
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.
5
Q
What type of account is deferred Revenue?
A
It is considered Unearned Revenue
6
Q
What are accruals?
A
It is when prepaid transactions are moved into the current period.
