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A file, or copy of a file, that provides a permanent record.
A duplicate copy of a file that is made for security reasons in case the original file becomes damaged or lost.
One master general ledger account that represents several related subsidiary ledger accounts. The amount in the control account equals the sum of the control account's subsidiary ledger account balances.
general ledger master file
A file that stores detailed data about the general ledger accounts in an accounting system.
A file that stores the data about transactions that have been started but cannot be fully processed until a subsequent event occurs. An example is a sales order open file pending shipment of ordered goods or completion of services.
A file that contains instructions to tell the computer how to process the data stored in the accounting system.
A file that stores data that are used repeatedly for processing transactions. An example is a tax table reference file that is used for processing payroll transactions.
A file that is set up during a processing operation to aid in the processing and is purged when the operation is completed.
A collection of individual accounts that comprise the details for a related control account in the general ledger. The sum of the individual account balances equals the amount of the related control account.
A file that stores records pertaining to a group of like transactions occurring during a short period of time. Examples are sales, cash receipts, and purchases transaction files. A transaction file corresponds to a paper journal.
bill of lading
A written contract between the shipper (also known as consignor) of goods and a carrier engaged in the business of transporting goods. This document evidences receipt of the goods for shipment.
cash receipts prelist
A record, maintained by date, of each cash receipt.
A document that a customer issues to request goods or services. The essential data elements in a purchase order are the customer's and vendor's names and addresses, the goods or services being ordered, and the expected delivery or performance date.
A report that documents the receipt of goods that were purchased. The essential data elements are a description of the goods, the quantity received, the quality, or condition, of the goods, and the date received.
A document used to bill a customer that indicates the dollar amount of a sale and the date the amount is due.
A document created internally to facilitate the delivery of goods or services. The essential data elements in a sales order are the customer-s name and address, the goods or services being ordered, and the expected delivery or performance date.
A document that captures data about transactions and other events and about file maintenance for entry into an accounting system. Examples of internally generated source documents are employee time cards, purchase requisitions, receiving reports, and production orders. Externally generated source documents include purchase orders from customers, remittance advices and checks from customers, and debit or credit memos from banks.
source document automation
The electronic capture of data.
A document for recording the time an employee started and stopped working each day and the number of hours worked.
List essential elements of a paper-based accounting system.
- source documents
- accounts/chart of accounts
- documents awaiting further processing
List essential elements of a computerized accounting system.
- source documents
- reference files
- open files
- transaction files
- master files
List the basic activities in a computerized accounting system.
- Preclassifying transactions according to type (such as sales, cash receipts, purchases, cash disbursements)
- Creating a transaction file for each class of like transactions for each data-capturing period
- Updating, or posting to, the subsidiary ledger master files and open files
- Summarizing transaction files and transferring the summarized data to a general journal transaction file
- Updating, or posting to, the general ledger master file
- Preparing documents and reports
What is the difference between batch posting and real-time posting? What are the best uses of each? List specific examples.
- In batch posting all posting or updating is done in a batch. In real time posting, as data is captured for each transaction, they can immediately update the appropriate master and open files.
- Real time posting should be used only when up-to-date information is critical, for example, inventory-related data (quantity of merchandise or service) and accounts receivables. Example: airline reservations, most online transactions.
- Batch posting should be used at all other times to minimize costs and to ensure that the maximum number of data-entry errors have been eliminated from transaction files before posting occurs, for example, payroll and end-of-the-month general ledger closings and wholesale sales transactions.