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

Account 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

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 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

where you record all of the check and cash transactions your business has

Question 12

Closing Entries

Answer 12

is a journal entry that is made at the end of an accounting period to transfer balances from a temporary account

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 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

is equal to total assets minus its total liabilities.

Question 18

Expense

Answer 18

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

Question 19

Fiscal Year

Answer 19

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

Question 20

General Ledger

Answer 20

an accounting record of all financial transactions in your business

Question 21

Income/Revenue

Answer 21

is equal to revenues minus the costs of doing business, such as depreciation, interest, taxes, and other expenses.

Question 22

In-Transit

Answer 22

your package is on its way to its final destination.

Question 23

Journal Entries

Answer 23

records a business transaction in the accounting system for an organization.

Question 24

Liability

Answer 24

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

Question 25

P.O.S.

Answer 25

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 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

merchandise sent back by a buyer to the seller

Question 30

Sales Tax Liability

Answer 30

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

Question 31

Sales Tax Payable

Answer 31

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

Question 32

Trial Balance

Answer 32

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

Question 33

Vendor

Answer 33

a person or company offering something for sale, especially a trader in the street.

Question 34

Purchase Discount

Answer 34

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