Accounting Terms

<< Click to Display Table of Contents >>

Navigation:  Accounting >

Accounting Terms

Previous pageReturn to chapter overviewNext page

FrazerAccountingBanner

 

Listed below are accounting terms used by Frazer. For a description of the term, click below on the appropriate button.

 

 


 

Credit

A Credit refers to any journal transaction that decreases asset accounts or increases liability and income accounts. Spending $5 on lunch credits your cash account. Withdrawing money from the bank credits your bank account.

 

Debit

A Debit refers to any journal transaction that increases asset and expense accounts or decreases liability accounts. Spending $5 on lunch debits your lunch expense account. Putting money in the bank debits your bank account.

 

Department

A Department is used to track different business entities within the same copy of Frazer. Two common reasons people use departments are for keeping track of a Related Finance Company and separating Buy-Here Pay-Here and Wholesale portions of a dealership. You may add departments from the Accounting >> 7 - Departments window. You may print both the R-4-1 Financial Statement report and the R-4-2 G/L Listings report for different departments.

 

Journal

In its most basic form, a Journal is a record of credits and debits. The full Journal of the business is also called the General Journal or General Ledger (sometimes abbreviated as "G/L"). The General Ledger is often broken-down into specialized journals to make the accounting more manageable. Frazer automatically uses seven specialized journals in the system. You may add more journals as needed for manual G/L postings from the Accounting >> 4 - Journals window.

 

 

 

Used Car Dealer Software by Frazer Computing, Inc.