83196
Description
Flashcards by amierosepickering, updated more than 1 year ago
|
Created by amierosepickering
over 11 years ago
|
|
| Question | Answer |
| Credit Note | a document sent to a customer showing allowance given by a supplier in respect of unsatisfactory goods |
| Credit Transfers | Electronically transferring money from one bank to another |
| Direct Debit | payments made automatically from one bank to another, this is a variable amount set buy the person receiving the money |
| Standing Order | a set amount of money automatically paid from one bank to another on a fixed date |
| Cash Receipt | Receipts given to a customer as proof of purchase |
| Till Rolls | paper inside the till which produces a receipt for the customer and another copy for the shop |
| Paying-in Slip Counterfoil | a form used for paying money into a bank account in the same bank |
| Invoices | record of sale/purchases |
| Cheque Counterfoils | small part of a cheque which holds details of a transaction |
| Partial Omission (Error Revealed by Trial Balance) | omission of one part of the double entry |
| Unequal Posting Error (Error Revealed by Trial Balance) | recording two debits or two credits for one transaction |
| Addition Error (Error Revealed by Trial Balance) | Error in calculating balances |
| Posting Error (Error Revealed by Trial Balance) | errors in transferring the balances to the trial balance |
| Error of Omission | a transaction has been completely missed out |
| Error of Commission | Right type of account but wrong persons |
| Error of Principle | wrong type of account all together |
| Compensating Error (Error not revealed but trial balance) | Two errors of separate transactions randomly cancel each other out |
| Error of Original Entry (Error not revealed but trial balance) | Original figure entered is incorrect |
| Complete Reversal of Entry (Error not revealed but trial balance) | Debit and Credit entries the wrong way around |
| Reasons for Trial Balance | 1. Its used to complete the final accounts 2.Checks that accounts have been balanced off correctly 3.Its a way or checking that all financial transactions have a debit and credit entry |
| Reasons for a Bank Reconciliation | 1. Enables the cashbook to be corrected for bank entries 2.Enables out of date cheques to be cancelled 3.Enables the Bank Statement to be corrected by informing the bank 4. Acts as a deterrent to fraud as the Bank Statement is an independent source document |
| Reasons for a Suspense Account | It allows you to deal with the errors found by a trial balance |
| Reasons for a control account | 1. A quicker way to find out how much a business is owed. 2. Preventing fraud-makes it more difficult to write off debt 3. Location of errors 4.Preparation of final accounts |
| Limitations of Control Accounts | Does not find: Error of omission Error of commission Error of original entry Compensating error |
Want to create your own Flashcards for free with GoConqr? Learn more.