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

anything that has current or future economic value to a business

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

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

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

the journal that records all the checks, cash and cash outlay during an accounting period

Question 12

Closing Entries

Answer 12

A closing entry is a journal entry made at the end of accounting periods that involves shifting data from temporary accounts on the income statement to permanent accounts on the balance sheet

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 deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account

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

a company’s book value, which is the difference between liabilities and assets on the balance sheet

Question 18

Expense

Answer 18

records of the amount a company spends on day-to-day costs during a given accounting period

Question 19

Fiscal Year

Answer 19

a 12-month accounting period that a business uses for financial and tax reporting purposes

Question 20

General Ledger

Answer 20

an accounting record of all financial transactions in your business

Question 21

Income/Revenue

Answer 21

the profit a company retains after paying off all relevant expenses from sales revenue earned

Question 22

In-Transit

Answer 22

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 23

Journal Entries

Answer 23

a record of a business transaction in your business books

Question 24

Liability

Answer 24

something a person or company owes, usually a sum of money

Question 25

P.O.S.

Answer 25

A point of sale, or POS, is 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 purchase discount is 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

the total amount of tax debt owed to a government by an individual, corporation, or other entity

Question 32

Sales Tax Payable

Answer 32

a liability account in which is stored the aggregate amount of sales taxes that a business has collected from customers on behalf of a governing tax authority

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