Brooke's Books

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

any resource that a business owns or controls

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

an official summary of financial transactions occurring within a given period for each bank account held by a person or business with a financial institution

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 register

Answer 10

a document or statement that is used to record check payments and other financial transactions

Question 11

Closing Entries

Answer 11

a journal entry made at the end of the accounting period whereby data are moved from temporary accounts to permanent accounts.

Question 12

Cloud Accounting

Answer 12

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

Question 13

Deposit Ticket

Answer 13

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

Question 14

EFT

Answer 14

electronic funds transfer’. So, it refers to any payment that’s processed electronically. For example, credit card payment processing is a form of EFT

Question 15

Entrepreneur

Answer 15

someone who is the directing force behind a business venture

Question 16

Equity

Answer 16

method of accounting whereby a corporation records a portion of the undistributed profits for an affiliated entity holding.

Question 17

Expense

Answer 17

the money spent and the costs incurred by a company in pursuing revenue.

Question 18

Fiscal Year

Answer 18

a period of 12 months that a company uses for its accounting purposes;

Question 19

General Ledger

Answer 19

an accounting record of all financial transactions in your business.

Question 20

Income/Revenue

Answer 20

“revenue” refers to the total amount of money a company generates before removing any expenses, “Income”, on the other hand, is equal to revenues minus the costs of doing business, such as depreciation, interest, taxes, and other expenses

Question 21

In-Transit

Answer 21

checks or other non-cash payments that a company received and recorded in its accounting system, but which have not yet been cleared by its bank

Question 22

Journal Entries

Answer 22

a record of the business transactions in the accounting books of a business

Question 23

Liability

Answer 23

money owed to buy an asset

Question 24

P.O.S

Answer 24

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

Question 25

Profit margin

Answer 25

the percentage of sales that a business retains after all expenses have been deducted.

Question 26

Purchase Discount

Answer 26

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

Question 27

Purchase Return

Answer 27

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

Question 28

Sales Discount

Answer 28

the financial recording of reducing the sales price due to early payment.

Question 29

Sales Return

Answer 29

The seller records this return as a debit to a Sales Returns account and a credit to the Accounts Receivable account

Question 30

Sales Tax Liability

Answer 30

keeps track of the sales tax collected from the customers on behalf of the governing tax authority

Question 31

Sales Tax Payable

Answer 31

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 32

Saving Card…
Trial Balance

Answer 32

a list of all the general ledger accounts contained in the ledger of a business.

Question 33

Vendor

Answer 33

a person or business that supplies goods or services to the company.

Question 34

Checkbook Reconciliation

Answer 34

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