Vocabulary Flashcards
Fiscal Year
An Accounting period used by businesses and organizations to budget, forecast, and report their finances
Account
The Place where financial entries of a similar nature are recorded
Chart of Accounts
The Collection of accounts that you use to track the flow of money in QB
Income
Money that customers pay your business in exchange for products or services
Expense
Money that your business spends on services or consumable goods
Cost of Goods Sold (COGS)
Direct costs involving the selling of the company’s goods and services
Sole Proprietorship
Most common business structure
Assets
Everything the Co. Owns. Cash, Inventory, Buildings, equipment, vehicles
Liabilities
Everything the co. owes. Vendor bills, cc balance, bank loans
Equity
Claims owners have on the assets
Accounting equation
Assets=Liability+Equity
Balance Sheet
Business financial health. What your business owns and owes. Assets=Liability+Equity
Income Statement
Summarizes financial transactions for a particular time period Revenues-COGS-expenses=Profit (or loss)
Current Asset
Use in the next 12 months
Long-Term Asset
Lifespan of more than 12 months
Backup
A copy of your QB files and data saved to another location, ideally other than your computer hard drive
QBB
The file extension for Quickbooks Back up file
Portable files
Compressed version of your existing co file
QBM
The file extension for Quickbooks for portable co. file
Accountants Copy File
Copy of co. file to give your accountant, and you are still able to work in the current file at the same time
QBX
The file extension for accountants copy file
Remote Access
A way to remotely access QB via the internet. Must use 3rd party service
Multiple users
Number of licenses that you purchased
Multi-User Mode
If you want to have multiple users access the file at the same time
IIF File
The file extension for a file exported from QB
Seperation of Duties
Assigning responsibility for the custody of assets to different people to prevent theft/fraud
Administrator
A QB user who can access all areas of the co. file and make any changes
Internal Controls
A system for safeguarding assets in a business
Closing Date
The date that you close the books for a particular accounting period
Condense Data Process
Replaces transactions with summary entries
