C

Credit rating

A credit worthiness indicator based on the riskiness of a customer. The rating is usually based on such criteria as: level of current debt, ability to repay, borrowing history and repayment experience. See also credit limit and credit control.

Company

A form of organisation, which is a group of individuals acting as a single "legal person" according to the statutes of the country in which formed, and therefore able to take ownership to goods, form contracts and be held responsible for actions. A typical and unique feature of a company is the characteristic called limited liability. Sometimes called a corporation. See also partnership and proprietorship.

Cash Receipt Journal

A special journal used to record only cash receipts. The cash receipts journal is usually in multi column form with columns for: date, reference, account number, customer name, multiple columns for major revenue sources, debtors and amount of cash received.

Cash Statement

A statement rendered periodically, often daily, to the management, usually showing the opening and closing balances of cash on hand and in each bank, summary of the receipts, and disbursements of the period or day, and particulars of deposits and withdrawals. The statement may be cumulative and may also contain an estimate of the resources and requirements of the immediate future.

Customer

An organisation or individual who buys goods or services from a vendor.

Controller

Another term for chief accountant, also called the comptroller.

Comptroller

See controller.

Corporate culture

The environmental aspects of an organisation including its underlying ethics and social interaction.

Channels of distribution

The means by which a product gets from the original manufacturer to the final user of a product or service. This typically may include: manufacturer / producer to wholesaler to retailer to consumer. There are however many innovative ways of channelling the products to the consumer including direct selling and mail order which may cut out some of the intermediates between the producer and the consumer, thereby reducing the price to the consumer or increasing the profits of the producer, or both.

Chief executive officer (CEO)

The person in overall charge of an organisation. Sometimes called the President or General Manager.

Credit control

The process of controlling credit sales to credit worthy customers, thus limiting the investment in debtors and the losses due to bad debts. See also credit rating and credit limit.

Classify

The process of determining which accounts to debit and which to credit in order to properly record an accounting transaction.

Cash Receipt

The process of receiving cash and cheques in payment for goods, services or prior credit purchases. Also refers to the physical document given to a customer to acknowledge the cash received.

Cash Records

The records and evidences of the receipt, disbursement, deposits and withdrawal of cash. Cash records include cash-receipt, cash-disbursement, and petty-cash books, registers of receipts and disbursements; checkbooks, stubs, or register, canceled checks, copies of deposit slips, and receipt and disbursement vouchers and sub vouchers and their attachments.

Credit limit

The upper limit beyond which a customer will not be allowed to purchase on credit. See also credit control and credit rating.

Creditors

Vendors from whom an organisation purchases goods or services on credit and have a current amount owing. Also called accounts payable.