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ACCTG 320 Key-Terms
Chapter 10
25
Accounting
Undergraduate 3
05/25/2011

Additional Accounting Flashcards

 


 

Cards

Term
Accounts Receivable Aging Schedule
Definition
A report listing customer account balances by length of time outstanding. The report provides useful information for evaluating current credit policies, for estimating bad debts, and for deciding whether to increase the credit limit for specific customers.
Term
Back Order
Definition
a document authorizing the purchase or production of items for which sufficient quantity is not available to meet customer orders.
Term
Balance-Forward Method
Definition
Method of maintaining accounts receivable in which customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices. Remittances are applied against the total account balance, rather than against specific invoices.
Term
Bill of Lading
Definition
A legal contract that defines responsibility for goods while they are in transit. It identifies the carrier, source, destination, any special shipping instructions, and indicates which party (customer or vendor) must pay the carrier.
Term
Cash Budget
Definition
A budget that shows projected cash inflows and outflows. Can provide advance warning of cash flow problems so corrective action can be taken.
Term
Choiceboards
Definition
Interactive sales order entry systems that allow customers to customize the products they are ordering.
Term
Credit Limit
Definition
The maximum allowable account balance for each customer, based on past credit history and ability to pay.
Term
Credit Memo
Definition
A document authorizing the billing department to credit the customer's account. Usually issued for sales returns, allowances granted for damaged goods kept by the customer, or to write off uncollectible accounts. Approved by the credit manager.
Term
Cycle Billing
Definition
A procedure for producing monthly statements for subsets of customers at different times. For example, the customer master file might be divided into four parts, and each week monthly statements would be prepared for one-fourth of the customers.
Term
Electronic Funds Transfer (EFT)
Definition
The transfer of funds between two or more organization or individuals using computers and other automated technology. Customers can send their remittances electronically to the company's bank and thus eliminate the delay associated with the time the remittance is in the mail.
Term
Electronic Lockbox
Definition
A lockbox arrangement in which the bank electronically sends the company information about the customer account number and the amount remitted as soon as it receives and scans those checks. This enables the company to begin applying remittances to customer accounts before the photocopies of the checks arrive.
Term
Financial Electronic Data Interchange (FEDI)
Definition
The combination of EFT and EDI that enables both remittance data and funds transfer instructions to be included in one electronic package.
Term
Lockbox
Definition
A postal address to which customers send their remittances. This post office box is maintained by the participating bank, which picks up the checks each day and deposits them to the company's account. The bank sends the remittance advices, an electronic list of all remittances and digital copies of all checks to the company.
Term
Monthly Statement
Definition
A document summarizing all transactions that occurred during the past month and informing customers of their current account balance.
Term
Open-Invoice Method
Definition
Method for maintaining accounts receivable in which customers typically pay according to each invoice. Usually, two copies of the invoice are mailed to the customer, who is requested to return one copy with the payment.
Term
Packing Slip
Definition
A document listing the quantity and description of each item included in a shipment.
Term
Picking Ticket
Definition
A document authorizing the inventory control function to release merchandise to the shipping department. The picking ticket is often printed so that the item numbers and quantities are listed in the sequence in which they can be most efficiently retrieved from the ware house.
Term
Profitability Analysis Reports
Definition
Reports used to assess overall marketing performance by breaking down the marginal profit contribution made by each territory, customer, distribution channel, salesperson, product, or other basis. Contrast with sales analysis report.
Term
Remittance Advice
Definition
An enclosure included with a customer's payment that indicates the invoices, statements, or other items paid.
Term
Remittance List
Definition
A document listing all checks received in the mail.
Term
Revenue Cycle
Definition
The recurring set of business activities and information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales.
Term
Sales Analysis Reports
Definition
Reports used to assess the efficiency and effectiveness of the sales force by breaking down sales by salesperson, region, or product. contrast with profitability analysis report.
Term
Sales Invoice
Definition
A document notifying customers of the amount of a sale and where to send payment.
Term
Sales Order
Definition
The document created during sales order entry listing the item numbers, quantities, prices, and terms of the sale.
Term
Vendor Managed Inventory (VMI)
Definition
When manufacturers and distributors manage a retail customer's inventory using an EDI.
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