QBO chapter 10 key terms

Question	Answer
Cash Basis	A sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid.
Accrual Basis	Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.
Assets	What a company owns.
Liabilities	What a company owes.
Owners' Equity	The residual that is left after liabilities are satisfied.
Cash Flows from Operating Activities	Cash inflows and outflows related to the company's primary business, such as cash flows from sales and operating expenses.
Cash Flows from Investing Activities	Cash inflows and outflows related to acquisition and disposal of long term assets.
Cash Flows from Financing Activities	Cash inflows and outflows to and from investors and creditors (except interest payments). Examples include loan principal repayments and investments by owners.
Open Purchase Order List	Open purchase orders are purchase orders for items ordered but not yet received.
Purchases by Vendor Detail	The purchases by vendor detail report lists all purchases, grouped by vendor.
Journal	The journal report lists every transaction entered in our QBO Company in a debit and credit entry form.
Audit Log	The audit log feature of QBO permits us to track all changes (additions, modifications, and deletions) made to out QBO records.

Resource summary

	Created by QUINLAN WILSON almost 2 years ago