Quickbooks Final Exam Prep Correct Questions & Answers(RATED A)

accounting - ANSWER The process of recording, summarizing, and presenting the financial information of a company in the form of financial statements. accrual basis of accounting - ANSWER An accounting method that requires the recording of revenue when it is earned and the recording of expenses when they are incurred regardless of cash receipts or cash payments. adjusting journal entries - ANSWER Adjustments made to accounts at certain periods of time, such as the end of the month or the end of the fiscal year, to bring the balances up to date. bank reconciliation - ANSWER Procedure used to determine the correct cash balance in an account by comparing the activity recorded in the account with the activity recorded on the bank statement. cash basis of accounting - ANSWER An accounting method that records revenue when cash is received for services provided or for a product sold, and records expenses only when payments have been made. cash payments journal - ANSWER A journal used to record all cash payment activities, including payment of accounts payable. cash purchase - ANSWER Payment of any bill or item other than accounts payable. cash receipts journal - ANSWER A journal used to record all cash receipt activities including collection of accounts receivable. cash sale - ANSWER A sale for which payment is received immediately. Chart of Accounts List - ANSWER A list of all accounts a business uses. collection of accounts receivable - ANSWER Collection of accounts receivable occurs when a customer pays part or all of his or her outstanding balance due the company; this Activity is sometimes referred to as payment of accounts receivable. credit card charges - ANSWER Expenditures charged to a credit card to be paid at a later date. credit - ANSWER Dollar amount recorded in the right column of an account. Depending on the account, it either increases or decreases the balance in the account.