Appendix B lists the glossary of terms used in Computer Accounting in the Cloud with QuickBooks Online, 2e. Within the textbook, words that are boldfaced and italicized are defined in the Glossary. The glossary is also included on the Online Learning Center at www.mhhe.com/qbo2e.

account list	The account list shows the chart of accounts. See chart of accounts. (p. 79)
accounting equation	The balance sheet shows the accounting equation — Assets = Liabilities + Equity. (p. 177)
accounts payable	The money a company owes to a supplier or vendor. (p. 148)
accounts payable transactions	Purchases on account from vendors. Transactions that affect accounts payable appear in the Transaction List by Vendor. The Transaction List by Vendor shows the bill, vendor credit, and bill payment transactions that make up vendors' balances. (p. 148)
accounts receivable	Accounts receivable are what customers owe your business. (p. 208)
accounts receivable transactions	Credit transactions from customers. (p. 208)
adjusting entries	Adjusting journal entries are recorded to correct account balances. Adjusting entries are created for a variety of reasons, including booking depreciation, reallocating accruals, and reversing accruals of prepaid income or expenses. (p. 316).
audit log	The audit log contains a list of all the changes that have ever been made to your company data and by whom. By default, the Audit Log displays the 200 most recent events. Dates and Times in the Audit Log and Audit History reflect when events occurred, displayed in your local time. (p. 45 and 86)
balance sheet	The balance sheet lists what you own (assets), what your debts are (liabilities), and what you’ve invested in your company (equity). (p. 16)
bank reconciliation	The process of bringing the balance of the bank statement and the balance of the checking account into agreement. (p. 144)
bill	A bill posts to Accounts Payable and the vendor with the appropriate expense or account. You enter a bill (payable to a vendor) to record the expense or purchase of assets. (p. 166)
business processes	A collection of related, structured activities or tasks that produce a specific service, product, transaction, or report. (p. xxii)
chart of accounts	A complete list of a business's accounts and their balances. The chart of accounts includes two categories of accounts — Balance Sheet accounts and Income and Expense accounts. (p. 16)
cloud	Data is stored on web servers instead of your computer. Cloud software is always accessible and up to date. (p. xviii)
cloud computing	Enables ubiquitous, convenient, on-demand network access to a shared pool of computing resources (for example, applications, servers, and services) that can be rapidly delivered with minimal management effort or server interaction. Examples include Software as a service, QuickBooks Online and NetSuite; Infrastructure as a service, Amazon Web Services and Dropbox; Platform as a service, Windows Azure. More information at http://www.nist.gov/itl/cloud/ (p. 54)
cloudware	Refers to software that is built, installed, delivered and accessed entirely from a remote Web server, also called the cloud. Cloudware is a software delivery method that provides software over the Internet. (p. 53)
company administrator	Company Administrators have all access rights within QBO. They also have all access rights for every other service to which the company subscribes. (p. 82)
confirmation code	When signing in, multi-factor authentication using a 6-digit confirmation code is required. Each sign is authenticated via the computers IP address. IP address is defined on page 512. For more information refer to https://community.intuit.com/articles/1164912-multi-factor-authentication-faq. (page 83)
credit memo	Refunds for merchandise that is returned by a customer. A credit memo affects the customers balance. (p. 210)
customer relationship management (CRM)	Customer relationship management practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships, assisting in customer retention and driving sales growth. CRM systems are designed to compile information on customers across different channels or points of contact between the customer and the company. (p. 545)
customers	A customer is a person or organization that buys goods or services from a store or business; for example, a consumer, buyer, subscriber, shopper. The Sales page manages your customer list and transactions. (p. 198)
dashboard	The dashboard is a current snapshot of the business as of the day you sign in. For example, the test-drive’s dashboard shows profit and loss, how much as spent, the income and sales summary, and bank accounts for Craig’s Design and Landscaping Services. The Dashboard is also called the Home page. (p. 3)
default	A setting or a value automatically assigned to a software application, computer program or device, without user intervention. For example, the Dashboard shows software presets. (p. 4)
enterprise resource planning (ERP)	Enterprise resource planning systems are company-wide software products that coordinate all the resources, information, and functions of a business from shared data sources. (p. 545)
financial statements	The financial statements report economic information about the business. (p. 176)
fiscal year	The fiscal year is a period that the company (or government) uses for accounting purposes and preparing financial statements. The fiscal year may or may not be the same as the calendar year. For tax purposes, companies can choose to be calendar-year taxpayers or fiscal-year taxpayers. The default Internal Revenue Service system is based on the calendar year. (p. 316)
generally accepted accounting principles (GAAP)	A common set of accounting principles, standards, and procedures that companies use to compile financial statements. GAAP are a combination of standards set by policy boards and the commonly accepted way of recording and reporting accounting information. (p. 20)
home page	The QBO Home page is the central place for getting an overview of the company. The Home page is also called the Dashboard. (p. 3)
income and expense accounts	Categories of accounts for tracking how money flows in and out of your company. (p. 17)
income statement	In QBO, the income statement is the same as the Profit and Loss report. Refer to the glossary definition of Profit and Loss. (p. 20)
internal controls	An integrated system of people, processes, and procedures that minimize or eliminate business risks, protect assets, ensure reliable accounting, and promote efficient operations. (p. 86)
inventory item	A product that is purchased from vendors for sale to customers. (p. 156)
IP address	An Internet Protocol address is a unique address that personal computers, tablets, and smartphones use for identification. (p. 84)
journal entry	A journal entry is a transaction in which there are at least two parts – a Debit and a Credit – called distribution lines. Each distribution line has an account from the Chart of Accounts. The total of the Debit column equals the total of the Credit column. (p. 98)
keyboard shortcuts	Instead of using the mouse or trackpad, a combination of keys are pressed to complete common tasks and workflows. (p. xxxiv)
modules	A software design that emphasizes separating the functions of a program into independent, interchangeable modules, so that each contains everything necessary to execute only one aspect of the desired function. QBO organizes reports by modules or components within the accounting system. On the Reports page, the link to <All Reports>, shows how QBO organizes each module. (p. 315)
multi-factor authentication MFA	Multi-factor authentication (MFA), also called multi-level authentication, is an internet security method. MFA is a method of computer access in which a user is granted access only after presenting several separate pieces of evidence. An example of MFA is two-factor authentication (2FA). When access is granted to the professor, 2FA is a method of confirming the professor’s identity. For more information, read this article at https://community.intuit.com/articles/1164912-multi-factor-authentication-faq (p. 83)
navigation bar	On the left side of the screen, QBO includes a Navigation bar where you access different pages. (p. 4)
permanent accounts	The asset, liability, and equity accounts shown on the Balance Sheet are called permanent accounts. They do not close at the end of the accounting year. Permanent account balances accumulate month to month and year to year. (p. 334)
perpetual inventory	When products are set up, general ledger accounts are updated when purchases and sales are recorded. QBO tracks cost of goods sold, stock levels, sales prices, and inventory. In a perpetual inventory system, an up-to-date record of inventory is maintained and the inventory account is revised each time a purchase or sale is made. (p. 159)
products and services	Use products and services to enter consistent transaction descriptions, prices or rates. (p. 157)
profit and loss	The profit and loss report shows money you earned (income) and money you spent (expenses) so that you can see how profitable your company is. The report shows subtotals for each income or expense account in your chart of accounts. The last line shows your net income (or loss). If you want to focus on a particular week, month, quarter or year, set the date range to that time period. (p.10)
QBO	An abbreviation for QuickBooks Online. The version used in Chapter 1 with the sample company is QBO Plus. (p. xvii)
record keeping	The process of recording transactions and events in an accounting system. Since the principles of accounting rely on accurate and thorough records, record keeping is the foundation accounting. An example of an accounting transaction is the sales to a customer on account. (p. 315)
refund	When a refund is issued, you write a check or pay out cash to the customer. (p. 210)
remittances	The action of sending money in payment of a bill. (p. 254)
Software as a Service (SaaS)	QBO is an example of Software as a Service. SaaS is a way of delivering applications over the Internet—as a service—instead of installing and maintaining software locally on your hard drive. You access the software through your Internet browser. (p. 54)
source documents	Written evidence of a business transaction. Examples of source documents are sales invoices, sales receipts, bills, transaction register, and a bank statement. (p. 96)
specialized screens	Examples of specialized screens are checks, receive payments, bill, bank deposit, and transfers. (p. 99)
statement of cash flows	A report that shows how your cash position changed over time. It shows the amount of cash earned from profit, where you received additional cash and where your cash was spent. It uses all the Bank-type accounts from your chart of accounts. The SCF assumes that all activity within current assets and current liabilities are operating activities. Entries that affect fixed assets are investing activities. Entries that affect long-term liabilities and equity are financing activities. (p. 177)
templates	A document or transaction pattern that is stored so that it can be used again. In QBO, recurring transactions can also be set up (Gear > Recurring Transactions). (p. 528)
temporary accounts	Accounts that are closed at the end of the year are called temporary accounts. Temporary accounts, such as income, cost of goods sold, and expenses, accumulate transactions and balances during one accounting year. In QBO, temporary account balances are transferred to the Retained Earnings account on the first day of the new year, and the income and expense accounts have a zero balance. (p. 334)
transaction register	A term used to identify checking account activity. (p. 96)
trial balance	This report summarizes the debit and credit balances of each account on the chart of accounts for a period of time. (p. 36 and 123)
undeposited funds	The Undeposited Funds account is like an envelope where you keep checks until you take them to the bank. If you receive more than one check or payment in a day, they could be grouped as one deposit. (p. 134)
updates	Next to links that have changed, reminder information is shown. (p. 61)
user interface (UI)	The user interface is the link between the user and the software. The QBO user interface includes links for software navigation. (p. 4)
vendors	The Expenses page is where you keep track of the suppliers you work with. Vendors are people or companies that you pay money to, such as a store, utility, or landlord. (p. 140)
workflow	The sequence of processes through which work passes from initiation to completion. (p. xxiii)