Chapter 2 Notes: Revenue, Expenditure, HR Cycles and Data Processing (Vocabulary Flashcards)

Vocabulary flashcards covering revenue, expenditure, and HR cycle source documents; data processing concepts (garbage in/out, master vs transaction files, batch vs real-time); and related processing actions.

Customer order

The initial request from a customer for goods or services.

Sales order

A document created to authorize and record a sale within the seller's system.

Delivery ticket / Bill of lading

Evidence that goods have been shipped and delivered to the customer.

Remittance advice

Notice accompanying a payment that explains which invoices are being paid.

Remittance list

A list of customer payments received, used to apply cash to accounts receivable.

Deposit slip

A bank form that records cash receipts deposited into a bank account.

Credit memo

Document issued to credit a customer’s account due to returns or allowances.

Purchase requisition

Internal document requesting the purchase of needed items.

Purchase order

Formal contract issued to a supplier to buy goods or services.

Receiving report

Document confirming items actually received from a supplier.

Check / Electronic Funds Transfer (EFT)

Methods used to pay suppliers.

W-4 form

Employee withholding form used to determine federal income tax withholding.

Time card

Record of hours worked by an employee.

Job time ticket / time sheet

Document recording time spent on specific production jobs.

Materials on hand

Quantity of raw materials currently in stock.

Cost allocation form

Document used to assign overhead costs to products.

Turnaround document

Document used to minimize re-entry of data by returning data to the original source.

Preformatted input screens

User interfaces with fixed fields to reduce data-entry errors.

Garbage in, garbage out

Poor input data leads to poor output; prevention involves data validation, edit checks, and proper controls.

Master file

Permanent data file storing non-transactional information (e.g., customers, items) updated by transactions.

Transaction file

File that records individual transactions and is updated during processing.

Update customer address

Master file update reflecting a change to a customer's address.

Update unit pricing information

Master file update reflecting new product pricing.

Record daily sales

Transaction file entry documenting daily sales transactions.

Record payroll checks

Transaction file entry documenting payroll disbursements.

Change employee pay rates

Master file update adjusting employee pay rates.

Record production variances

Transaction file entry noting differences between standard and actual production.

Record sales

Transaction file entry capturing a sale event.

Update accounts payable balance

Master file update reflecting changes in amounts owed to suppliers.

Change customer credit limit

Master file update adjusting the maximum credit allowed for a customer.

Change vendor payment discount terms

Master file update altering discount terms offered by a vendor.

Record purchases

Transaction file entry recording a purchase from a supplier.

Batch processing

Data processing where transactions are collected and processed together in a batch.

Real-time processing

Data processing where input is processed immediately as it is entered.

Materials on hand (revenue/expenditure context)

Quantity of raw materials available, relevant to production and purchasing cycles.

Revenue cycle

Business activity from taking customer orders to collecting cash, including source documents and cash receipts.

Expenditure cycle

Business activity from requesting items to paying suppliers, including purchase orders and checks/EFT.

Human resources cycle

Business activity from collecting employee withholding data to paying wages, including W-4s and time records.

Turnaround document (definition)

A document used to capture data and then returned to the source to reduce re-entry.