Quickbooks Chapter 3

  1. Customer
    A person or business that the company sells goods or services to, either on account or for cash
  2. Sales Journal
    A journal used to record all sales of goods or services on account; can be in single-column or multi-column format.
  3. Cash Receipts Journal
    A journal used to record all cash receipt activities including collection of accounts receivable.
  4. Four Levels of Operation
    • 1. New Company Setup
    • 2. List/Centers
    • 3. Activities
    • 4. Reports
  5. New Company Setup
    The first level of operation is creating and setting up a new company file with the background information for the new company.  This involves recording the company name, address, identification numbers, fiscal periods, type of business, accounts, and balances.
  6. List/Centers
    The second level of operation is recording background information information in Lists and Centers.  These Lists and Centers include Chart of Accounts, Item, Fixed Asset Item, Price Level, Billing Rate Level, Sales Tax Code, Payroll Item, Customer, Vendor, Employee, and so on.
  7. Activities
    The third level of operation is recording daily business activity in Quickbooks.  This is where most of the routine accounting work is processed.
  8. Reports
    The fourth level of operation is using Quickbooks to display and print an assortment of Reports-for example, management reports related to each activity, such as vendor, customer, inventory, and payroll reports; accounting reports, such as the journal, general ledger, and trial balance; and financial statements, including statement and balance sheet.
  9. Sales on account
    A sale on account occurs when a company sells good or services to a customer but does not receive payment until a future date.
  10. Collection of accounts receivable
    Collection of accounts receivable occurs when a customers pays part or all of their outstanding balance due the company; this activity is sometimes referred to as payment of accounts receivable.
Card Set
Quickbooks Chapter 3
Quickbooks 2013