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Cougar Mountain - Accounting terms
Category: Economy and Finance > Accounting
Date & country: 29/04/2011, USA
Words: 166

Accelerated Depreciation
Any method of depreciation used for accounting or income tax purposes that allow greater deductions in the earlier years of the life of an asset.

Accounting Period
The period of time covered by an income statement. One year is the accounting period for much financial reporting, but financial statements are also prepared by most companies for each quarter and each month.

Accrual Basis of Accounting
The practice of recording revenue in the period in which it is earned and recording expenses in the period in which they are incurred. The effect on the business is recognized as goods or services are rendered or consumed, rather than when cash is received or paid.

Accumulated Depreciation
The total amount of recorded for an asset since its date of acquisition.

Acquisition Costs
The value of resources used to obtain an asset. These costs may be paid by short and long term debt, equity, cash, and can include both tangible and intangible costs.

Paying off a debt in regular installments over a period of time.

Applied Credit
In Accounts Receivable, a credit memo that reduces the amount remaining to be paid on a specific debit item, instead of merely reducing the total amount owed on the account.

Applied Debit
In Accounts Payable, a credit memo that reduces the amount remaining to be paid on a specific credit item, instead of merely reducing the total amount owed on the account.

Applied Payment
In Accounts Receivable, a payment that reduces the amount remaining to be paid on a specific debit item, instead of merely reducing the total amount owed on the account.

Apply Type
This is established when adding Benefit/Deduction/Addition/Tip Codes to PR employee master records. The Apply type specifies how a code calculates and applies each pay period.

AR Code
A two-character alphanumeric code attached to customer master records and used to categorize customers. The AR Code is used in the Interface Table to specify a GL Accounts Receivable account.

The economic resources owned by a business for the purpose of conducting business operations.

Audit Process
An accounting activity involving the independent review of accounting records to ensure accuracy of those records. The audit process is aimed at finding any deviations from generally accepted accounting principles.

Audit Trail
The documentation of transactions for use by consumers and auditors of financial statements to substantiate the authenticity and accuracy of the financial statements. Also, a report available in the General Ledger module that provides a chronological listing by account of the entries posted to each account.

Periodically updated copies of computer data that ensure against total loss of data from a catastrophic event.

Balance Forward
An AR customer type specified by the AR Code in which all open invoices are compacted into a single monthly balance at the end of each month. See Also Open Item.

Bank Reconciliation
A report, or the process of preparing it, that lists the outstanding items comprising the difference between the bank statement balance and the company checkbook balance.

Batch Processing
A transaction processing method that allows for multiple transactions to be entered and edited prior to posting.

Batch Status
The activity status associated with each batch of transactions. The status is viewable through the Batch Status Report for modules set up for multiple batch processing. A batch of transaction can be accessible and able to accept additional transactions or inaccessible because posting has been initiated.

Batch Type
Batch types are identified in the Batch Status Reports, with each type of batch containing different transaction types. In Order Entry and Point of Sale, there are two types of batches, invoice transaction batches and recurring batches. In Accounts Payable, there are invoice batches and payment batches.

Beginning Inventory
The book value of goods, inputs, or materials available for use or sale at the beginning of an inventory accounting period.

Benefit earned by employee such as; vacation, sick-leave, insurance, bonus, etc.

Calendar Month or Year
A period of the Gregorian calendar of time measurement beginning on January 1 and ending on December 31.

Cash Basis of Accounting
The practice of recording revenue when received in cash and recording expenses when they are paid in cash.

Cash Flow Statement
A statement of sources of cash receipts and purpose of cash disbursements used to explain the change in the Cash account balance.

Cash Key
An indicator that identifies a transaction as a cash transaction and determines which General Ledger Cash account is affected.

Cash Sale Invoice
An invoice that documents the exchange of goods or services for cash or a cash instrument such as check, credit card, money order, or bank draft.

Charge Sale Invoice
An invoice that documents the exchange of goods or services for a promise of future payment.

Chart of Accounts
A list of the General Ledger accounts and corresponding account numbers used to record the events of a business.

Closing Entries
Journal entries made at the end of the year for closing revenue and expense accounts and transferring the balance to the owner

CMS Date
The CMS Date (or system date) is the date that all modules and software use by default. This date is set each time the software is opened.

In Inventory, the process of deducting the quantity of stock items that have been included in a transaction that has been saved but not posted from the available quantity of that stock item. Once the sales transaction has been posted, the Committed quantity is subtracted from the on-hand quantity, the on-hand quantity is updated, and the committed quantity is reset to zero. For example, if there a...

Company Templates
A set of ledgers, accounts, and data files already set up in the accounting program for a company to adopt to their own purposes. These templates eliminate a great deal of the work required in setting up a new company in the accounting program.

Consolidated Financial Statements
Financial statements presenting the combined financial position and operating results of affiliated companies.

Context-Sensitive Help
Online instructional and explanatory text that is relevant to the specific operation being performed. Help is available throughout the software and changes with the screen and cursor position to coincide with the task at hand. A help button is available in some screens, and the default help key is F1.

Contra Account
A ledger account which is deducted from a related account.

Contra-Asset Account
An account with a credit balance that offsets an asset account to reflect the appropriate balance sheet value for the asset.

An amount entered in the right-hand column of a ledger account. A credit decreases an asset or expense account balance, and increases a liability, equity, or income account balance.

Credit Memo
A document issued that reduces the amount of a receivable or increases the amount of a payable. These are used to record returned goods, defective goods or services, miscellaneous charges or credits, and error corrections.

Custom Companies
Companies established from scratch in which you set up all Profile variables required for operation.

Days to Lose Discount
The number of days after a sale that an early payment discount is available.

A debit increases an asset or expense account balance, and decreases a liability, equity, or income account balance.

Debit Memo
A document issued that reduces the amount of a payable. These are used to record returned goods, defective goods or services, miscellaneous charges or credits, and error corrections.

Sum or amount deducted from pre-tax or after-tax wages.

Default Entry
A value placed in a data entry field that is recorded as the entry to the field unless overridden to a different value.

Department Code
A Profile Code that defines the sales departments within a company. Department Codes determine which General Ledger income accounts are affected by a sales transaction.

An expense recorded to reduce the value of a long-term tangible asset. Since it is a non-cash expense, it increases free cash flow while decreasing reported earnings.

Detail Line Type
The type of transaction item entered on a particular line of a transaction document. Detail Section That portion of a transaction document that shows the itemized detail of the transaction.

The original evidence of a business transaction such as checks, sales receipts, or a cash register tape.

Double-Entry Accounting System
A system in which the total dollar amount of debits must equal the total dollar amount of credits.

Due Date Control
An indicator that specifies how the due date of a payable is determined. For instance, a due date can be determined by counting off a number of days from the transaction date or from the first day of the next month.

Due Date Days
The number of days used in conjunction with the due date control to determine the due date of a payable.

Wages, salary, or other recompense earned by working.

Edit Report
A listing of entered but not posted transactions for checking the accuracy of the data entry work.

EFT (Payroll)
Electronic Funds Transfer. The electronic transfer of funds from one bank account to another via modem in an encrypted format. Charges are made automatically through the Federal Reserve

EFTPS (Payroll)
Electronic Federal Tax Payment System, must be used to make electronic deposits.

EIC (Payroll)
Earned Income Credit

EIN (Payroll)
Employer Identification Number

Ending Inventory
A book value of goods, inputs, or materials available for use or sale at the end of an inventory accounting period.

Entire Accounting Cycle
The sequence of accounting activities performed during an accounting period.

See owner

Exceptions Report
Any report that emphasizes the abnormal rather than the normal status. In Accounts Payable, the Cash Requirements Report can be considered an exceptions report since it shows invoices that are due but not paid.

The cost of goods or services used up for the purpose of generating revenue.

Expense Allocation
The process of allocating indirect expenses of a business among departments to measure the performance of each department.

Extended Price
The result when the quantity invoiced is multiplied by the price per unit. The total for a detail line on an invoice.

A secondary party attached to an Accounts Payable vendor to whom you make invoice payments. If a vendor is factored, you typically purchase items from the vendor, but make payments for those items to the associated factor.

FICA (Payroll)
Federal Insurance Contributions Act Social Security. Tax paid equally by employee and employer

FIFO (first in, first out)
An inventory valuation method based on the assumption that the first item acquired is the first item sold, and that the remaining items are the most recently acquired.

Finished Good
A product that is created by combining other items. The Finished Good has completed the manufacturing and/or assembly process and is ready for sale.

Finished Goods Inventory
Goods that have been manufactured but have not yet shipped.

Flag (noun)
A flag is an indicator that can be set to signify one of a small number of possible conditions. Flags are most commonly used to signify which of an either-or situation exists. For instance, a journal entry is either a debit or a credit. When entering journal entries, we set a flag to 0 to signify a debit or to 1 to signify a credit.

Flag (verb)
To set a flag on a data record. Usually used when one particular flag setting indicates a need for special attention.

Form 940 (Payroll)

Form 941(Payroll)

Form 945 (Payroll)
Annual Return of Withheld Federal Income Tax.

FUTA (Payroll)
Federal Unemployment Tax (see Form 940).

Fund Accounting
A system of accounting used primarily by nonprofit or government organizations, emphasizing records of how their money was spent, instead of how it was earned, unlike corporations.

GL Key
Two character alphanumeric entries found in various codes throughout the accounting modules that are used in the Interface Table to specify an associated GL account.

Gross Profit on Sales
The result when the cost of goods sold is subtracted from the revenue from sales.

Header Section
The portion of a transaction document that contains general transaction information applying to all aspects of the transaction. Header information includes items such as names and addresses of the parties involved, the transaction date, and payment terms.

Held Invoice
A sales invoice that is retained in the batch for further action. A held transaction remains in the batch and does not post until it is retrieved and released.

Historic Transactions
Transactions from the past that are entered to provide an accurate history of business operations. These transactions commonly were recorded in some other accounting system and now are being entered in the new system so as to be reflected in reports generated from the new system.

Revenue resulting from the operations of a business.

Intangible Asset
An asset that is not physical in nature. An example is a copyrights or goodwill.

Indicators set within the Module Preferences window of each module that specifies communication of posted information between modules.

Interface Code
A combination of determinants that represents a combination of circumstances surrounding a transaction. It specifies which General Ledger accounts are affected by a transaction conducted under the associated set of circumstances.

Interface Key
Often used interchangeably with GL Key. See GL Key.

Interface Table
A cumulative table of Application Interface Codes that directs posting of transactions from Order Entry, Point of Sale and Accounts Receivable to the appropriate General Ledger accounts. It is analogous to a lookup table that contains every possible set of transaction circumstances and the accounts affected by transactions conducted under each set of circumstances.

Goods being held for resale. In manufacturing, can be raw materials, goods in process or finished goods.

Inventory Turnover Ratio
An indicator of how many times inventory was totally replaced during the year. The formula is: Inventory Turnover Ratio = cost of goods sold / average inventory.

Inventory Valuation Method
The practice used to assign costs to Inventory items sold.

An itemized statement of goods or services sold that shows quantities, prices, total charges, payment terms, and sales tax. An invoice might also include many other items of information such as item description. The invoice serves as the original evidence of ownership transfer for both the buyer and seller.

Invoice Only Transaction
A Purchase Order transaction that invoices items that were previously received into Inventory but not invoiced.

A record of transactions that show the accounts and amounts of both the debit side and credit side of the entry.

Journal Entry
A single entry of a transaction in that records the account and amount for both debit side and credit side to be recorded in the general ledger. Also includes a short description of the transaction.

Landing Costs
The costs of acquiring inventory besides the purchase cost. Sales tax and freight charges can be landing costs.

LIFO (last in, first out)
An inventory valuation method based on the assumption that the last item acquired is the first item sold, and that the remaining items are the first acquired.

The claims against the assets of a business. The debts or financial obligations of a business.

Line Item Types
The different types of transactions that can be documented on a detail line of an invoice.

Long-term Liability
An obligation that will take longer than one year to satisfy.