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

a useful or valuable thing, person, or quality.

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 6

Business Transaction

Answer 6

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

Question 6

Chart of Accounts

Answer 6

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

Question 6

Check Stub

Answer 6

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

Question 6

Checkbook Reconciliation

Answer 6

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 6

Checkbook Register

Answer 6

cash disbursement journal

Question 6

Closing Entries

Answer 6

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

Question 7

Cloud Accounting

Answer 7

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

Question 8

Deposit Ticket

Answer 8

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

Question 9

EFT

Answer 9

electronic funds transfer

Question 10

Entrepreneur

Answer 10

a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Question 11

Equity

Answer 11

the quality of being fair and impartial

Question 12

Expense

Answer 12

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

Question 13

Fiscal Year

Answer 13

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

Question 14

General Ledger

Answer 14

an accounting record of all financial transactions in your business.

Question 15

Income/Revenue

Answer 15

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

Question 16

In-Transit

Answer 16

your package is on its way to its final destination

Question 17

Journal Entries

Answer 17

a record of a business transaction in your business books

Question 18

Liability

Answer 18

the state of being responsible for something, especially by law

Question 19

P.O.S.

Answer 19

a system for making sales in person

Question 20

Profit Margin

Answer 20

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

Question 21

Purchase Discount

Answer 21

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

Question 22

Purchase Return

Answer 22

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

Question 23

Sales Discount

Answer 23

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 24

Sales Return

Answer 24

merchandise sent back by a buyer to the seller.

Question 25

Sales Tax Liability

Answer 25

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

Question 26

Sales Tax Payable

Answer 26

debit your Cash account, and credit your Sales Revenue and Sales Tax Payable accounts.

Question 27

Trial Balance

Answer 27

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

Question 28

Vendor