ERP Software Business and Accounting Tems: Assessment Quiz (Part 3)

As Sage 100 ERP software consultants, we understand that there are alot of business and accounting terms to know and it can start to get confusing.  Over the years, we have helped hundreds of clients get trained and up and running on ERP software solutions.  Here are some to some business and accounting terms we work with every day.  We hope you have fun taking a few minutes to test your knowledge of some common business and accounting terms. 

Match up the business and accounting terms with the meanings and check out part 1 and part 2 of this ERP softwareblog series for additional terms.  See answers below…

ERP Software Business and Accounting Terms:

1. Petty Cash Transfer Form

2. Petty Cash Voucher

3. Bill of Materials

4. Evalvated Receipts

5. Negative Approval

6. Positive Pay

7. Cost Pool

8. Cycle Counting

9. Change Orders

10. Accretion Expense

11. Amortization

12. Borrowing Base

13. Mark to Market

ERP Software Business and Accounting Meanings:

A. Write-off of an intangible asset over its expected period of use. Same concept as depreciation for tangible assets.

B. The process of counting a small proportion of total inventory on a daily basis. A key aspect of cycle counting is to investigate and correct the reasons for any errors found, rather than just adjusting the inventory records to correct an error.

C. The record of the materials used to construct a product. It can include raw materials, sub-assemblies, and supplies. It can be used to order parts from suppliers, and is a key part of the evaluated receipts system.

D. The practice of having authorized persons only notify the A/P staff if they do not approve of a supplier invoice. All other invoices are assumed to approved.

E. The adjustment of the recorded value of an asset to its current market value.

F. The expense arising from an increase in the carry amount of the liability associated with an asset retirement obligation. It is classified as an operating expense in the income statement.

G. Is used to document the transfer of cash from the cashier to the petty cash custodian.

H. An anti-fraud measure whereby a company issuing checks notifies its bank of all checks it has issued. The bank then compares this information to checks being presented for payment, and refuses to accept any checks for which it has not received prior notification from the company.

I. The total amount of collateral against which a lender will lend funds to a business.

J. When someone is paid from the petty cash fund, they must complete a petty cash voucher. The voucher provides evidence that the person was actually paid, since someone must sign for the payment received

K. A grouping of costs from which allocations are made to cost objects. The most common use of a cost pool is to accumulate overhead costs that are then allocated to manufactured goods.

L. The engineering staff sometimes issues engineering change orders, where they swap out one part for another in the fabrication of a product.

M. A materials management system under which suppliers deliver materials to a company's production facilities on a just-in-time basis, and are paid based on the company's production of finished goods that incorporate those materials.

Answers: 1(G)  2(J)  3(C)  4(M)  5(D)  6(H)  7(K)  8(B)  9(L)  10(F)  11(A)  12(I)  13(E)

Please CONTACT US at Convergence Technologies, Ltd. for any questions related to ERP software and business and accounting related questions.  As a Sage 100 ERP and Sage CRM consulting firm, we can help you with business process review, Sage 100 ERP and Sage CRM system support and training, custom programming (we are one of 70 Sage Master Developers authorized in the U.S.), planning and project management, implementation, and report design.  Other products supported are Sage HRMS, Sage Fixed Assets and Sage Timesheet.  We also sponsor User Groups to help Sage 100 ERP customers get the most out of their investment.  Visit our website www.converg-tech.com or call us at 260-748-4866.

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