Brooke's Book

Question 1

Accounts Payable

Answer 1

amounts due to vendors or suppliers for goods or services received that have not yet been paid for.

Question 2

Accounts Receivable

Answer 2

the funds that customers owe your company for products or services that have been invoiced.

Question 3

Aging Report

Answer 3

a record of overdue invoices, accounts receivable, or unused credit memos by periodic date changes.

Question 4

Asset

Answer 4

property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

Question 5

Balance Sheet

Answer 5

a financial statement that reports a company’s assets, liabilities, and shareholder equity.

Question 6

Bank Statement

Answer 6

a list of all transactions for a bank account over a set period, usually monthly.

Question 7

Business Transaction

Answer 7

a financial transaction between two or more parties that involves the exchange of goods, money, or services.

Question 8

Chart of Accounts

Answer 8

an index of all the financial accounts in the general ledger of a company.

Question 9

Check Stub

Answer 9

a paper document attached to a physical check or included in a wages envelope.

Question 10

Checkbook Reconciliation

Answer 10

making sure the records you’ve kept for all your spending and income match what the bank says on your physical or online statement

Question 11

Checkbook Register

Answer 11

to calculate a running balance of their checking account.

Question 12

Closing Entries

Answer 12

a journal entry made at the end of the accounting period.

Question 13

Cloud Accounting

Answer 13

a system that allows multi-user access and safe online or remote server storage.

Question 14

Deposit Ticket

Answer 14

a list of currency and checks provided by the bank as proof a deposit was made.

Question 15

EFT

Answer 15

electronic funds transfer

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

the quality of being fair and impartial.

Question 18

Expense

Answer 18

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

Question 19

Fiscal Year

Answer 19

a one-year period that companies and governments use for financial reporting and budgeting.

Question 20

General Ledger

Answer 20

an accounting record of all financial transactions in your business.

Question 21

Income/Revenue

Answer 21

money received, especially on a regular basis, for work or through investments.

Question 22

In-Transit

Answer 22

in the process of being transported.

Question 23

Journal Entries

Answer 23

a record of a business transaction in your business books.

Question 24

Liability

Answer 24

rapid, often exaggerated changes in mood, where strong emotions or feelings (uncontrollable laughing or crying, or heightened irritability or temper) occur.

Question 25

P.O.S

Answer 25

a system for making sales in person.

Question 26

Profit Margin

Answer 26

gauges the degree to which a company or a business activity makes money, essentially by dividing income by revenues.

Question 27

Purchase Discount

Answer 27

a deduction that a payer can take from an invoice amount if payment is made by a certain date.

Question 28

Purchase Return

Answer 28

when the buyer of merchandise, inventory, fixed assets, or other items sends these goods back to the seller.

Question 29

Sales Discount

Answer 29

a reduction in the price of a product or service that is offered by the seller, in exchange for early payment by the buyer.

Question 30

Sales Return

Answer 30

merchandise sent back by a buyer to the seller.

Question 31

Sales Tax Liability

Answer 31

funds collected from customers to be distributed to state and local tax agencies by businesses.

Question 32

Sales Tax Payable

Answer 32

The state sales and use tax rate is 5.75 percent.

Question 33

Trial Balance

Answer 33

a report that lists the balances of all general ledger accounts of a company at a certain point in time.

Question 34

Vendor

Answer 34

a person or company offering something for sale, especially a trader in the street.