Solved

Presented Below Is a List of Terms Relating to Accounting

Question 9

Matching

Presented below is a list of terms relating to accounting information systems, followed by definitions of those terms.
Match the appropriate term with each definition. Each answer will be used only once.

Premises:

Responses:

Remittance list

Documentation which is forwarded to the billing function to evidence a shipment to a customer

Credit memo

Invoice received from a carrier for shipments

Open-item processing

The time between the signing of the payment check by a customer and the moment the firm has use of the funds

Bill of lading

A form used to document reductions to a customer's account due to sales returns or allowances

Invoice

A customer's remittances are applied against a customer's outstanding balance rather than against individual invoices

Balance-forward processing

A listing of customer payments in cash and by check that is prepared for control purposes

Sales order

A document similar to a quotation that does not contain delivery information

Inquiry

A document that informs a customer of charges for goods or services rendered

Goods issue notice

A customer's remittances are applied against individual invoices rather than a customer's outstanding balance

Float

A document prepared to initiate the shipment of goods to a customer