QuickBooks 1-4

Account Payable

a purchase on account

credit memo

a reduction of Account Payable as a result of a return or an allowance by a vendor

the trial balance

a report containing all the general ledger account names, their respective debit or credit

the chart of accounts llists consists of

account number, name , type and balance

pay bills window

displays all open bills as of a selected date

A quickbooks user

enters a transaction based on the nature of the activity such as enter bills, write checks, and create invoices

A bill

from a vendor is considered a liability

purchase on account

if a company receives a bill for goods or services from a vendor but plans to pay it at a later date

A customer

is a person or business to which the company sells goods or services to, either on account or for cash

The receive payments window

is designed only for collection of invoices previously recorded in the Create Invoice window

payments on account

is payment of an outstanding account payable

The account types in QuickBooks consist of

Assets Liabilities, Equity, and Income and Expense

Centers Include

Customer, vendor, and employee

In QuickBooks, which window is used to record a purchase on account?

Enter bills window

the write checks window

For a cash payments on a bill not previously entered in QuickBooks

what is another name for the profit & loss report?

Income Statement

A sale on account

occurs when a company sells goods or services to a customer but does not receive payment until a future date

NET 30 DAYS

payment is due within 30 Days

collection of accounts

receivable occurs when a customer pays part or all of their outstanding balance due the company

a cash sale

results in a debit to the cash or undeposited funds account

The Vendor Center

should contain company name, address, contact person, type of vendor, terms, and other important information

vendor

someone from whom a company buys goods or services, either on account or for cash

vendor file is estiblished

transactions can include receiving a bill from a vendor, paying that bill, and paying for a cash purchase

for adjusting journal entries

use make general journal entry

enter bills window

when a company receives a bill for goods or services the bill is recorded in

the receive payments window

when a customer pays an invoice, the company enters this transaction in

a cash sale

when payment for merchandise is received immediately

When a bill(or account payable) previously recorded is to be paid

you enter the transaction in the pay bills window of QuickBooks

4 levels of operations with quickbooks

New Company Setup, Lists/ Centers, Activities, and reports

when you enter a bill from a vendor

QuickBooks automatically credits the Accounts Payable account

When you write a check in the pay bills window

QuickBooks automatically decreases (debits) the accounts payable account

Financial Statements

Summaries of the financial information of a company

All necessary reports are instantly prepared

With a computerized accounting software package, as business activities are recorded

A sale on account is

an account receivable

Adjusting journal entries

are adjustments made to accounts at certain periods of time to bring the balances up to date

payments on account

are recorded in the pay bills window

QBB

backup copy and condenses the file

Lists include

chart of accounts, item, price level, and sales tax code

the collection of all customer files

comprises the customer lists

in quickbooks, which window is used to record a sale on account?

create invoices

you can customize all reports to modify

the appearance of the report or the fields of information to be displayed

When a company creates an invoice for goods or services, the invoice is recorded in

the create invoice window

Customer activities in quickbooks use

the creative invoices, receive payments, enter sales receipts and make deposits window

to change the heading in any report click

the customized report button on the top of the report

General Ledger

the document where transactions are summarized by account

vendor reports include

the unpaid bills detail report, the vendor Balance Detail report and the Vendor Contact List report