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

A useful or valuable thing, person, or quality.

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A printed record of the balance in a bank account and the amounts that have been paid into it and withdrawn from it, issued periodically to the holder of the account.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

Question 8

Chart of Accounts

Answer 8

A financial, organizational tool that provides an index of every account in an accounting system.

Question 9

Check Stub

Answer 9

Attached to a check, and provides the detail regarding the amount paid.

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 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 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 business, 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 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

Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations.

Question 22

In-Transit

Answer 22

Your package is on its way to its final destination.

Question 23

Journal Entries

Answer 23

A record of a business transaction in your business books.

Question 24

Liability

Answer 24

The state of being responsible for something, especially by law.

Question 25

P.O.S.

Question 26

Profit Margin

Answer 26

The amount by which revenue from sales exceeds costs in a business.

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

Merchandise is given back to the seller from the buyer after the sale in return for a refund.

Question 29

Sales Discount

Answer 29

A reduced price offered by a business on a product or service.

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 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.