Accounting Chapter 3: Financial Transactions

A book or spreadsheet used to record small cash payments made by a business, such as for refreshments, postage, or travel.

A system of managing petty cash where the amount of money kept on hand is fixed and replenished to a specific level.

The amount of money kept on hand for petty cash transactions, also known as the 'float'.

A document used to record individual petty cash expenses, usually containing the date, description of the expense, and the amount paid.

The difference between the total of vouchers and the remaining cash in the petty cash box, which reflects the funds used for the period.

A document issued to a customer when goods are returned or a refund is owed due to overcharging. It acts as a negative invoice and records the credit transaction.

A document used to formally request a credit note from a supplier. It does not record a transaction.

A sales tax added to most invoices in Bangladesh, which is ultimately paid to or received/adjusted from the VAT Authority.

Documents like invoices, credit notes, and debit notes used to record transactions related to sales and purchases on credit.

Electronic bank transactions, such as online transfers and payments, which provide businesses instant access to their bank accounts.

Reports generated from electronic banking systems, showing transaction details for transactions through the 'Cash at Bank' account. They serve as source documents for these transactions.

A document that records the transaction details from electronic banking, providing proof of funds coming in and going out of the bank account.

A document that records a credit transaction, detailing the goods or services provided and the amount owed.

A document sent by the seller to the buyer, requesting payment for goods or services sold on credit.

A document received by the buyer from the supplier, detailing goods or services purchased on credit.

The period of time allowed for a customer to make a payment for goods or services purchased on credit.

A discount offered to customers for early payment of an invoice.

Included on an invoice indicating the payment method, account details, and other terms of sale.

A sequential number assigned to invoices to track sales and purchases.

An accounting record that tracks all incoming and outgoing money moved through a business bank account.

A system that automatically matches transactions between bank records and accounting records, making it easier to reconcile bank statements.

A small amount of cash kept on hand for minor expenses that cannot be paid electronically.

A record of all payments made from and receipts received by petty cash.

A system where a petty cash fund is maintained at a fixed amount, with receipts and payments used to replenish it.

An amount of cash kept on hand for petty cash transactions.

Payments made from petty cash are documented by vouchers that are later used to replenish the fund.

A record of the amount of cash used to replenish the petty cash fund.

Cash in the form of notes and coins kept on hand for petty cash transactions.

A separate record maintained by a business to track all cash and bank transactions.

A monthly document provided by a bank to businesses, summarizing all transactions within the account.

Specialized software that can connect directly to a bank's system, automatically recording transactions into the business's accounting records.

A type of artificial intelligence that automatically identifies and matches known transactions, simplifying the accounting process.

A temporary account used to hold unmatched transactions, requiring further investigation by an accountant.

A report that highlights transactions that haven't been automatically matched and recorded, requiring further investigation.

A transaction report downloaded from a bank's system, providing a summary of all receipts and payments for a specific period.

The process of uploading data from a transaction report into an accounting software system, allowing for further processing and analysis.

A process where accounting software uses AI to automatically identify and match known transactions with the appropriate accounts.