Brooke's Books

Question 1

Accounts Payable

Answer 1

Money owed by a company to its creditors.

Question 2

Accounts Receivable

Answer 2

Money owed to a company by its debtors.

Question 3

Aging Report

Answer 3

Tells how long an invoice has been due for payment

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 statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

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A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

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

Question 8

Chart of Accounts

Answer 8

A list of financial accounts set up, usually by an accountant, for an organization, and available for use by the bookkeeper for recording transactions in the organization’s general ledger

Question 9

Check Stub

Answer 9

The part of a check that is kept by the payee with information such as the check number, date, and amount.

Question 10

Checkbook Reconciliation

Answer 10

The process by which the bank account balance in an entity’s books of account is reconciled to the balance reported by the financial institution in the most recent bank statement.

Question 11

Checkbook Register

Answer 11

A document, usually part of the general ledger, used to record financial transactions in cash

Question 12

Closing Entries

Answer 12

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

Question 13

Cloud Accounting

Answer 13

The on-demand availability of computer system resources, especially data storage and computing power, without direct active management by the user

Question 14

Deposit Ticket

Answer 14

A small paper form that a bank customer includes when depositing funds into a bank account.

Question 15

EFT

Answer 15

An electronic transfer of money from one bank account to another, either within a single financial institution or across multiple institutions, via computer-based systems, without the direct intervention of bank staff.

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 value of the shares issued by a company.

Question 18

Expense

Answer 18

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

Question 19

Fiscal Year

Answer 19

A year as reckoned for taxing or accounting purposes.

Question 20

General Ledger

Answer 20

The main accounting record of a company or organization.

Question 21

Income/Revenue

Answer 21

The total amount of income generated by the sale of goods or services,

Question 22

In-Transit

Answer 22

Merchandise and other types of inventory that have left the shipping dock of the seller, but not yet reached the receiving dock of the buyer.

Question 23

Journal Entries

Answer 23

The act of keeping or making records of any transactions either economic or non-economic.

Question 24

Liability

Answer 24

Something a person or company owes, usually a sum of money.

Question 25

P.O.S.

Answer 25

A place where a customer executes the payment for goods or services and where sales taxes may become payable.

Question 26

Profit Margin

Answer 26

The difference between the total cost to run your business and the total revenue it brings in.

Question 27

Purchase Discount

Answer 27

A 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 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

a liability account in the balance sheet that keeps track of the sales tax collected from the customers on behalf of the governing tax authority.

Question 33

Trial Balance

Answer 33

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Question 34

Vendor