Accounting Business Simulation

Question 1

Accounts Payable

Answer 1

Current liability account that keeps track of money that you owe to any third party.

Question 2

Accounts Receivable

Answer 2

Money owed to a company by its debtors.

Question 3

Aging Report

Answer 3

A report that lists the outstanding invoice amounts and due dates of a company or a health care provider12345.

Question 4

Asset

Answer 4

A useful or valuable thing, person, or quality

Question 5

Balance Sheet

Answer 5

Also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity.

Question 6

Bank Statement

Answer 6

A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.

Question 7

Business Transaction

Answer 7

Exchange of value, usually involving goods, money, or services, between two or more parties1234. It must be measurable in monetary terms and recorded for accounting purposes13. It can also refer to any arrangement that facilitates a transaction between persons, such as opening an account or acquiring a business5. A business transaction can be conducted online or offline2.

Question 8

Chart Accounts

Answer 8

List of account names or codes that are used to record and classify transactions in a company’s accounting system

Question 9

Check Stub

Answer 9

A check stub is attached to a check, and provides the detail regarding the amount paid. The contents of a check stub typically include the invoice number paid and the amount paid, which sums to a grand total paid.

Question 10

Checkbook Reconciliation

Answer 10

A check stub is attached to a check, and provides the detail regarding the amount paid. The contents of a check stub typically include the invoice number paid and the amount paid, which sums to a grand total paid.

Question 11

Checkbook Register

Answer 11

A checkbook register is a basic accounting tool that is pretty simple and straightforward to use. There are several benefits of owning and keeping a checkbook register—whether it is for personal use or for business reasons. First and foremost, a checkbook register is used to record or monitor financial transactions.

Question 12

Closing Entries

Answer 12

Closing entries may be defined as journal entries made at the end of an accounting period to transfer the balances of various temporary ledger accounts to some permanent ledger account.

Question 13

Cloud Accounting

Answer 13

Cloud accounting is hosted in the cloud, as a Software as a Service (SaaS). It provides real-time reporting and financial analysis, and can handle multiple types of transactions more efficiently.

Question 14

Deposit Ticket

Answer 14

A deposit ticket is a paper slip that lists the currency and checks that are deposited into a bank account.

Question 15

ETF

Answer 15

A trust Fund.

Question 16

Entrepreneur

Answer 16

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Question 17

Equity

Answer 17

It can refer to the value of the company after subtracting liabilities from assets234, the amount of shares that stockholders own or would receive if the company sold its assets and paid off its debts345, or the sense of justice and fairness that the company reflects in its values and practices1. Equity can be calculated based on the book value or the market value of the company.

Question 18

Expense

Answer 18

The cost required for something; the money spent on something.

Question 19

Fiscal Year

Answer 19

Fiscal is an adjective that means related to money, especially the money a government, business, or organization earns, spends, and owes. It can also refer to taxation, public revenues, or public debt5. Fiscal can describe policies, plans, requirements, or periods that involve finances or public revenue.

Question 20

General Ledger

Answer 20

A general ledger is a recordkeeping system used to sort, store, and summarize a company’s financial transactions.

Question 21

Income/Revenue

Answer 21

Income is often considered a synonym for revenue since both terms refer to positive cash flow; however, in a financial context, the term income almost always refers to the bottom line or net income since it represents the total amount of earnings remaining after accounting for all expenses and additional income.

Question 22

In-Transit

Answer 22

In transit is a phrase that means in the process of being transported.

Question 23

Journal Entries

Answer 23

Journal entries are how you record financial transactions. To make a journal entry, you enter details of a transaction into your company’s books.

Question 24

Liability

Answer 24

Quality or state of being legally responsible for something

Question 25

P.O.S.

Answer 25

Point of Sale

Question 26

Profit Margin

Answer 26

Measure of profitability

Question 27

Purchase Discount

Answer 27

Deduction that a company may receive if the supplier offers it and the company pays the supplier’s invoice within a specified period of time.

Question 28

Purchase Return

Answer 28

When a good is returned.

Question 29

Sales Discount

Answer 29

Reduction in the price of a product or service that is offered by the seller.

Question 30

Sales Return

Answer 30

When buyer sends back merchandise

Question 31

Sales Tax Liability

Answer 31

The sales taxes collected by a merchant are not part of the merchant’s sales and are not part of the merchant’s expenses. Instead, the merchant is merely an agent of the state and will record the sales taxes collected as a current liability. When the merchant remits the sales taxes to the state, the current liability account is reduced.

Question 32

Sales Tax Payable

Answer 32

Liability account in the balance sheet.

Question 33

Trial Balance

Answer 33

Report or a worksheet that shows the debit and credit balances of all accounts in a company’s general ledger at a given date or point in time.

Question 34

Vendor

Answer 34

Person, a business entity, or a machine that sells or vends something.