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 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 during an accounting period.

Question 12

Closing Entries

Answer 12

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

Question 13

Cloud Accounting

Answer 13

the practice of using an accounting system that’s accessed through the internet.

Question 14

Deposit Ticket

Answer 14

is a form supplied by a bank for a depositor to fill out, designed to document in categories the items included in the deposit transaction.

Question 15

EFT

Answer 15

An electronic funds transfer (EFT) is a digital transfer of cash through an online payment system.

Question 16

Entrepeneur

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

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” 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 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.

Answer 25

A point of sale (POS) is a place where a customer executes the payment for goods or services and where sales taxes may become payable.

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 purchase discount is a deduction that a company may receive if the supplier offers it and the company pays the supplier’s invoice within a specified period of time.

Question 28

Purchase Return

Answer 28

A purchase return occurs is 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 reduced price offered by a business on a product or service.

Question 30

Sales Return

Answer 30

A sales return is 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 financial report showing the closing balances of all accounts in the general ledger at a point in time

Question 34

Vendor

Answer 34

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