Chapter 4 Summary: Financial Transactions and Accounting Systems

Flashcards covering key vocabulary and definitions related to financial transactions and accounting systems as per Chapter 4 lecture notes.

Computerized Accounting System

An accounting system that uses software to manage financial transactions and accounting records.

General Ledger

The main accounting module which contains all other ledgers in a computerized accounting system.

Receivables Ledger

A ledger within the general ledger that tracks money owed by customers.

Payables Ledger

A ledger that records amounts owed by the business to suppliers.

Standing Data

Data that does not change frequently, such as customer names and addresses.

Account Codes

Unique codes assigned to each account in the general ledger used for posting transactions.

Cloud-Based Accounting

An accounting system that can be accessed from anywhere via the internet, rather than being installed on local computers.

Quotation

A document provided by a seller detailing costs for goods or services requested by a buyer.

Purchase Order

A document created by a buyer to request goods or services from a supplier.

Sales Order

A document generated by a seller upon receiving an order for goods or services.

Goods Received Note

A document confirming receipt of goods ordered, used in the accounting process.

Credit Note

A document issued to a customer when goods are returned, decreasing the amount owed.

Debit Note

A document issued to a supplier when goods are returned, increasing the amount owed.

Remittance Advice

A document sent with a payment to indicate what is being paid for.

Impressed System

A cash management system where the sum of cash on hand and vouchers equals a predetermined float amount.

Float

The amount of cash available in a petty cash system, equating to cash plus vouchers in the impressed system.